June 19, 2008

Digital Angel Awarded $885,000 in Contracts From Federal Government Agencies

Digital Angel (NASDAQ: DIGA), an advanced technology company in the field of animal identification and emergency identification solutions, announced today that its Destron Fearing unit has been awarded $885,000 in contracts with the Portland, OR-based Bonneville Power Administration (BPA), a federal agency under the U.S. Department of Energy (DOE), the National Marine Fisheries Service and the U.S. Army Corps of Engineers, for Passive Integrated Transponder (PIT) technology. One award, for $760,000, is for the initial development phase of a large antenna reader system for the Bonneville Dam, covering a nine-month period beginning July 1, 2008. The budget for this multi-phase project has a total of $2.5 million in funding, covering an estimated total 18-month period. The later phases of this project have not yet been awarded. The multiplex reader project award, for $125,000, is for reader systems for river applications.

In its work with the BPA, Destron Fearing employs PIT technology in conjunction with a Radio Frequency Identification (RFID) antenna to monitor salmon movement in the dam passages in the Columbia and Snake River Basins in the U.S. Pacific Northwest.

Joseph J. Grillo, Chief Executive Officer of Digital Angel, said: "These new contracts awarded to Destron Fearing demonstrate the confidence placed by the DOE, other federal agencies and the fisheries community in our technical expertise. The Bonneville Dam project is for an antenna system even larger than the one delivered three years ago to this customer, where we designed and implemented what was then the world's largest RFID ISO FDXB antenna, measured at 17 feet by 17 feet square. The new antenna system will measure 50 feet long by 5 feet wide."

Since the late 1980s, Digital Angel has worked with Portland-based BPA and the federal Columbia and Snake River hydroelectric projects to develop, manufacture and install implantable PIT systems for monitoring the native salmon population, representing a vital resource to the local community. The species' vulnerability to pollution, weather changes and over-fishing makes BPA's monitoring program a crucial element in their survival. Digital Angel's ground-breaking technology allows the BPA to effectively monitor the local salmon populations as they migrate through a river system that encompasses an elaborate network of dams and contributories.

About Digital Angel

Digital Angel (www.digitalangel.com) is an advanced technology company in the field of animal identification and emergency identification solutions. Digital Angel's products are utilized around the world in such applications as pet identification using its patented, FDA-approved implantable microchip; livestock identification and tracking using visual and radio frequency identification (RFID) ear tags; and global positioning systems (GPS) search and rescue beacons for use on aircraft, ships and boats, and by adventure enthusiasts. Digital Angel is an approximately 49% stockholder of VeriChip Corporation (NASDAQ: CHIP).

This press release contains certain "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements included in this press release include, without limitation, those concerning expectations regarding the expected benefits of the technology and impact of the awards on the Company's financial results. These forward-looking statements are based on the Company's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions. Additional information about these and other factors that could affect the Company's businesses is set forth in the Company's Form 10-K under the caption "Risk Factors" filed with the Securities and Exchange Commission ("SEC") on March 17, 2008, and subsequent filings with the SEC. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.