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Digital Angel Wins Unanimous Jury Verdict in Case Brought by Former CEO

^{Published on 2010-12-02 14:35:42 - Market Wire}
 

SO. ST. PAUL, Minn.--([ BUSINESS WIRE ])--Digital Angel Corporation (OTCBB: DIGA), an advanced technology company in the field of animal identification and emergency identification solutions, announced today that it has won a unanimous jury verdict in the breach of contract case brought by former Company Chief Executive Officer Michael Krawitz. No damages were awarded against the Company.

"We are pleased to be able to put this baseless lawsuit behind us"

aWe are pleased to be able to put this baseless lawsuit behind us,a commented Digital Angel CEO Joseph J. Grillo. aThis case, along with other legacy issues inherited from prior management, has been an enormous drain on current managementa™s time and resources and we are gratified that the jury found the lawsuita™s claims to be without merit by granting the Company an unqualified victory in the matter. This will be one less distraction for us as we continue to focus on improving the operational and financial performance of the Company.a

As previously disclosed, on June19, 2009, Michael Krawitz, a former CEO of the Company, filed a lawsuit in the U.S. District Court for the Southern District of Florida against Digital Angel (Michael Krawitz v. Digital Angel Corporation) and several members of the Companya™s Board of Directors. The lawsuit alleged a variety of claims relating to the amounts owed to him under his employment agreement. In response, Digital Angel filed a Motion to Dismiss all claims except the breach of contract claim. In December2009, the federal court granted the Companya™s Motion to Dismiss in its entirety and granted Mr.Krawitz leave to re-file his lawsuit in light of the courta™s decision. In January2010, Mr.Krawitz amended his Complaint to re-file the breach of contract claim against the Company and filed notice that he voluntarily dismissed all other claims against the Company and its Board of Directors. The jury verdict relates to this amended Complaint.

About Digital Angel

Digital Angel (OTCBB: DIGA) 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 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.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 decision upon the Companya™s operational and 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.