Press Release

VeriChip Corporation Appoints Former Secretary of Health & Human Services and Former Governor of Wisconsin Tommy G. Thompson to Its Board of Directors

Thursday July 7, 10:03 am ET

DELRAY BEACH, Fla.--(BUSINESS WIRE)--July 7, 2005--VeriChip Corporation, a subsidiary of Applied Digital (NASDAQ:ADSX), announced today that Tommy G. Thompson, former Health & Human Services (HHS) Secretary and former Governor of Wisconsin, was appointed to the
Company's Board of Directors. With nearly 40 years of his career devoted to public service, Secretary Thompson is recognized as a dedicated advocate for the health and welfare of all Americans. In his role as a member of the Board, Secretary Thompson is expected to help the Company accelerate adoption of the VeriChip for healthcare and security applications.

"We are pleased that we have been able to attract such a highly respected member of the healthcare community," said Scott R. Silverman, Chairman and CEO of Applied Digital. "An important part of our strategy has been to attract key thought and opinion leaders, and Secretary Thompson has played an influential role in shaping this country's healthcare policies. We look forward to him assisting the Company to make the VeriChip an important part of the healthcare landscape." Commenting on his appointment, Secretary Thompson stated, "We are all well aware of the need to enhance Information Technology in healthcare. It is my belief that VeriChip is an important and secure means of accessing medical records and other information. I look forward to working with the company as it continues its growth."

Secretary Thompson has dedicated his professional life to public service, most recently serving as governor of Wisconsin from 1987 through 2000. He made state history when he was reelected to office for a third term in 1994 and a fourth term in 1998. Secretary Thompson began his career in public service in 1966 as a representative in Wisconsin's state Assembly. He was elected assistant Assembly minority leader in 1973 and Assembly minority leader in 1981. Secretary Thompson received both his undergraduate and law degrees from the University of Wisconsin at Madison.

About VeriChip
VeriChip is a subsidiary of Applied Digital and the only company to provide both implanted and external RFID security solutions for people, their assets, and their environments. From the world's first and only FDA-cleared, human-implantable RFID microchip to the only patented active RFID tag with skin-sensing capabilities, VeriChip leads the way in next-generation RFID technologies. Today, over 3,000 installations worldwide in healthcare, security, industrial, and government markets benefit from both the protection and efficiencies provided by VeriChip systems. For more information on VeriChip, please visit www.verichipcorp.com.

About Applied Digital
Applied Digital develops innovative security products for consumer, commercial, and government sectors worldwide. The Company's 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. Applied Digital is the owner of a majority position in Digital Angel Corporation (AMEX:DOC).

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.

CEOcast, Inc. for Applied Digital
Ken Sgro, 212-732-4300
Source: VeriChip Corporation