Chief Information Officer of Harvard Medical School Recieves VeriChip

VeriChip Corporation, a wholly-owned subsidiary of Applied Digital (NASDAQ: ADSX), a provider of Security Through Innovation(TM), announced today that John D. Halamka, MD, MS, Chief Information Officer of Harvard Medical School, was implanted with a VeriChip(TM) in December 2004 and began an assessment of the technology. Prior to making a recommendation to a patient, Dr. Halamka wished to undergo the VeriChip "experience" so that, with his extensive clinical and information technology experience, he could make an assessment from all dimensions.

Dr. Halamka reported, "The insertion procedure was done in an outpatient setting in 15 minutes. There was no residual pain, scar, or even a palpable chip." Following his "chipping" Dr. Halamka stated that he climbed several mountains including Mount Washington in harsh environments (-20 degrees F and 6000 altitude) without any restrictions whatsoever. He also reported that the reader is robust, accurately reading his ID number 100% of the time up to 5 inches from his insertion site.

Dr. Halamka stated, "The three applications that I envision for the technology are identifying the non-responsive patient, reducing medical error by using RFID to positively identify the patient, nurse and medications during drug administration and verifying the right medications are being given to the right patient."

Commenting on Dr. Halamka's observations, Dr. Richard Seelig, Vice President of Medical Applications for VeriChip Corporation stated, "We are extremely honored that Dr. Halamka took it upon himself to independently evaluate the VeriChip technology and to evaluate its ability to improve patient care. As key medical decision makers, such as Harvard Medical School faculty, become familiar with the VeriChip System, guidance will be provided in the improvement of patient identification and secure access to healthcare information."

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.

Contacts

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

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