Applied Digital, Digital Angel Issue Merger Update - Quick Facts

(RTTNews) - Applied Digital Solutions Inc. (ADSX | charts | news | PowerRating) and Digital Angel Corp. (DOC | charts | news | PowerRating) provided an update on their upcoming merger. The companies expect to complete the merger on or around December 28, 2007.

Simultaneous with the completion of the merger, the companies also expect to announce a new chief executive officer to lead the newly combined company.

Upon completion of the transaction, Digital Angel's common stock will no longer be listed for trading on the American Stock Exchange.

After the transaction, the combined entity will do business as Digital Angel Company and trade on the Nasdaq Capital Market under the symbol "DIGA."

Applied Digital and Digital Angel expect the proposed transaction to save the companies in excess of $2 million a year over the next three years. The reduced costs will come from the reduction of accounting, insurance and other public company costs and the elimination of duplicate corporate functions.

The companies believe that under the new CEO, additional cost savings can be achieved through consolidation of facilities and operations. The merger will give Applied Digital stockholders a direct ownership in Digital Angel and Digital Angel stockholders an ownership position in VeriChip Corporation (CHIP | charts | news | PowerRating).

Digital Angel expect to report revenues of $76-80 million for 2007.

Applied Digital is the owner of majority positions in Digital Angel and VeriChip.

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