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

Awards Are for Initial Phase of Large RFID Antenna and Multiplex
Reader System Projects
SO. ST. PAUL, Minn.--(Business Wire)--
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.

Digital Angel
Jay McKeage, 651-554-1564
jmckeage@digitalangel.com

Copyright Business Wire 2008