N@N

Digital Angel HD.Taga" Approved by the USDA

^{Published on 2010-08-02 07:41:25 - Market Wire}
 

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 the Destron Fearing HD.Taga", a line of electronic identification tags using HDX technology, has been approved by the USDA. The technology is also ISO approved and compatible for international use.

"We are excited to offer HDX users a choice. Our plan is to offer HDX technology at FDX pricing, which we think the market will welcome and appreciate. We also see an opportunity to improve delivery time and service to customers using HDX tags from the other manufacture"

HDX or aHalf Duplexa technology like FDX or aFull Duplexa technology is a passive RFID electronic identification system. HDX differs from FDX in the way the tag interacts with its reader. HDX uses shorter term signals, while FDX uses a continual signal to transfer data from tag to reader. When applied to the livestock industry both technologies have demonstrated equivalent performance when properly used with ISO approved readers. In some cases, operations have older, less efficient readers that only read a HDX signal. By introducing the HD.Tag, Destron Fearing now provides the market with a second source for HDX technology offering producers a choice, while not having to switch out their current reader infrastructure.

aWe estimate that about 50% of the world cattle market using electronic identification tags is using HDX technology. With approval from the USDA, we are now able to compete in new markets, and offer customers a second source for HDX technology,a said Dan Ellsworth, Vice President of Sales and Marketing. aFor example, USDA approval will allow us to enter the Michigan market, where an official state program requires all livestock to be identified with a USDA approved electronic identification tag. ISO compatibility also opens doors in the international markets including new markets like Australia and Spain.a

Destron Fearing introduced its HD tags earlier this year to complement its full line of FDX products. The recent approval from the USDA, allows Destron Fearing to offer an alternative to the market, which had been exclusively supplied by Allflex, a French animal identification company.

aWe are excited to offer HDX users a choice. Our plan is to offer HDX technology at FDX pricing, which we think the market will welcome and appreciate. We also see an opportunity to improve delivery time and service to customers using HDX tags from the other manufacture,a Ellsworth added.

When applied to animal identification both HDX and FDX are reliable technologies with similar functionality. There are some applications and environments where one technology has advantages over the other. Generally, FDX technology tends to be more resistive to environmental noise and can be more robust around metal, while HDX technology is less affected by certain environmental frequencies. Both technologies are beneficial to the user, and perform equally well.

Destron Fearing HD.Taga™s are available in 3 different product combinations, and producers can choose the typical RFID HDX button only tag, a Combo Panel Tag (where the RFID HDX button is attached to the panel) or Choice Set offering (a panel tag for the right ear and the RFID HDX button tag for the left).

Approval from the USDA is part of an initiative to increase the United Statesa™ disease response capabilities. The 15 digit ID number that is programmed into the Destron Fearing HD.Tag and delivered to the livestock producer is associated with their premises identification number (PIN). The USDA maintains a livestock database and is able to associate that number to an animal and producer. In case of a disease outbreak, the USDA can trace the origins of an animal identified through this process to assist federal and state health officials.

About Destron Fearing and Digital Angel

Destron Fearing is a subsidiary of Digital Angel (NASDAQ: DIGA), 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 herd management using visual and radio frequency identification (RFID) ear tags; and global positioning systems (GPS) search and rescue beacons for army, navy and air force applications worldwide. For further information please visit [ www.destronfearing.com ] and [ www.digitalangel.com ].

Safe Harbor Statement

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 its impact 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 April 1, 2010, 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.