EXHIBIT 99.1

PRESS RELEASE


                                                             APPLIED DIGITAL


FDA CLEARS VERICHIP(TM) FOR MEDICAL APPLICATIONS IN THE UNITED STATES

DELRAY BEACH, FL and So. ST. PAUL, MN -- Applied Digital (NASDAQ: ADSX), a
provider of Security Through Innovation(TM) and Digital Angel Corporation
(AMEX:DOC) announced today that VeriChip(TM), the world's first implantable
radio frequency identification (RFID) microchip for human use, has been
cleared by the U.S. Food and Drug Administration (FDA) for medical uses in
the United States. The FDA clearance follows the completion of a de novo
application review.

The Company will hold a conference call today at 10:30 am eastern time in
order to discuss the FDA's decision, Company's marketing strategy and
medical applications for VeriChip. Interested participants should dial (800)
472-8309. The conference ID is 1531948. The call will also be webcast and
will be available on the Home Page of Applied Digital's web site at
www.adsx.com.

As previously disclosed, the FDA response is the result of the Company's
510(k) application and subsequent de novo application for the medical and
healthcare uses of VeriChip, originally submitted in October 2003. Digital
Angel Corporation is the manufacturer of VeriChip and has licensed the
technology to VeriChip Corporation, a wholly owned subsidiary of Applied
Digital, for human applications.

The VeriChip Health Information Microtransponder System consists of an
implantable RFID microtransponder, an inserter, a proprietary hand-held
scanner, and secure database containing the patient approved healthcare
information. About the size of a grain of rice, VeriChip is a subdermal
radio frequency microchip. Once inserted under the skin in a brief
outpatient procedure, the VeriChip cannot be seen by the human eye. Each
VeriChip contains a unique 16-digit verification number that is captured by
briefly passing a proprietary scanner over the insertion site. The captured
16 digit number links to the database via encrypted Internet access. The
previously stored information is then conveyed via the internet to the
registered requesting healthcare provider.

ABOUT VERICHIP(TM)

VeriChip is a subdermal RFID device that can be used in a variety of
security, financial, emergency identification and other applications. About
the size of a grain of rice, each


VeriChip product contains a unique verification number that is captured by
briefly passing a proprietary scanner over the VeriChip. The recommended
location of the microchip is in the triceps area between the elbow and the
shoulder of the right arm. The brief outpatient "chipping" procedure lasts
just a few minutes and involves only local anesthetic followed by quick,
painless insertion of the VeriChip. Once inserted just under the skin, the
VeriChip is inconspicuous to the naked eye. A small amount of radio
frequency energy passes from the scanner energizing the dormant VeriChip,
which then emits a radio frequency signal transmitting the verification
number. In October 2004, the U.S. Food and Drug Administration (FDA) cleared
VeriChip for medical applications in the United States. VeriChip is not an
FDA-regulated device with regard to its security, financial, personal
identification/safety applications. VeriChip Corporation is a wholly owned
subsidiary of Applied Digital.

ABOUT APPLIED DIGITAL

Applied Digital develops innovative security products for consumer,
commercial, and government sectors worldwide. Our unique and often
proprietary products provide security for people, animals, the food supply,
government/military arena, and commercial assets. Included in this
diversified product line are RFID applications, end-to-end food safety
systems, GPS/Satellite communications, and telecomm and security
infrastructure, positioning Applied Digital as the leader of Security
Through Innovation(TM). Applied Digital is the owner of a majority position
in Digital Angel Corporation (AMEX: DOC). For more information, visit the
company's website at http://www.adsx.com.

ABOUT DIGITAL ANGEL CORPORATION

Digital Angel Corporation develops and deploys sensor and communications
technologies that enable rapid and accurate identification, location
tracking, and condition monitoring of high-value assets. Applications for
the Company's products include identification and monitoring of pets, fish,
livestock, and humans through its patented implantable microchips; location
tracking and message monitoring of vehicles and aircraft in remote locations
through systems that integrate GPS and geosynchronous satellite
communications; and monitoring of asset conditions such as temperature and
movement, through advanced miniature sensors.

For more information about Digital Angel, visit the company's website at
www.DigitalAngelCorp.com.

Statements about the Company's future expectations, including future
revenues and earnings, and all other statements in this press release other
than historical facts are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934, and as that term is defined in the Private Litigation
Reform Act of 1995. Such forward-looking statements involve risks and
uncertainties and are subject to change at any time, and the Company's
actual results could differ materially from expected results. The Company
undertakes no obligation to update forward-looking statements to reflect
subsequently occurring events or circumstances.



Contact:
CEOcast, Inc. for Applied Digital
Ken Sgro, 212-732-4300
ksgro@ceocast.com

Allen & Caron Inc. for Digital Angel Corporation

Investors: Mike Lucarelli, 1-212-691-8087, m.lucarelli@allencaron.com,

Media: Len Hall, 949-474-4300, len@allencaron.com