| X. | The Spread of Human Microchip Implants: Global |
| Posted: December 1, 2003 |
| A. | South America: Expected Sales: The Los Angeles Times: December 19, 2001 |
| The Los Angeles Times reported that Applied Digital Solutions expected to sell chips in South America. |
| A Florida company is poised to become the first to sell microchips designed to be implanted into human beings, an achievement that opens the door to new systems of medical monitoring and ID screening... |
| Regulatory approval is not necessary overseas, however. Applied Digital expects to be selling chips in South America in about 90 days. One potential market is kidnap targets, who could use these chips in combination with global positioning devices.239 |
| B. | Brazilian Government Official: Miami Herald: March 10, 2002 |
| A Miami Herald article points out that tracking is ongoing in the U.S. and suggests that, "if trackable chip implants become widely available," many will want to "get chipped," not unlike a Brazilian government official was planning to do in March of 2002. |
| Los Angeles County parolees are being monitored by Digital Angel through a three-year pilot program. Implanted microchips currently track more than 86,000 pets in Florida, as well as livestock and zoo animals. Experts predict that if trackable chip implants become widely available, there will be a long line of military personnel, diplomats, corporate executives, foreign correspondents and celebrities waiting to "get chipped." |
| This month, Brazilian government official Antonio de Cunha Lima, the first distributor of the VeriChip in Brazil, will be implanted with the chip.240 |
| C. | South America: Brazil: Chipped Family: Time Magazine: March 11, 2002 |
| A March 11, 2002, Time article entitled "Meet the Chipsons" includes a brief discussion of plans to implant humans with microchips in South America. |
| Two weeks ago, Applied Digital Solutions signed a deal to distribute VeriChips in Brazil, where kidnapping has become epidemic, especially among the rich and powerful. Government officials hope that VeriChips implanted in people considered at high risk could be used to track victims via satellite. "Here [in the U.S.] we're still dealing with FDA and privacy and civil-liberties issues," says [Keith] Bolton [vice president of Applied Digital Solutions, the company behind VeriChip]. But we're not stopping. We're going into South America right now!" Technology has a way of moving faster than legislation, and if it comes down to a race between cyborgs and Senators, guess who will win? Resistance is futile.241 |
| D. | South America: Brazilian Politician: Newsfactor: April 5, 2002 |
| A NewsFactor Network article, entitled, "Implantable Spy Chip Gets Green Light from U.S.," reported that a "Brazilian politician...has been trying to become the first South American to use the implant chip..." |
| The company [Applied Digital Solutions] also said the chip [VeriChip] could be combined with a global positioning system (GPS) and used for security purposes by potential kidnap victims. |
| ADS, which has estimated that the worldwide market for security chips will reach US$450 million by 2007, already has deals in place in South America. |
| Brazilian politician Antonio de Cunha Lima has been trying to become the first South American to use the implant chip, according to published reports. Brazil has the fourth highest kidnap rate in the world, after Colombia, Mexico and Indonesia.242 |
| E. | Mexico: "VeriChip Corporation Signs First Distributor for Mexico": Business Wire; April 25, 2002 |
| Applied Digital Solutions signed a distribution agreement with Speko Corporation for VeriChips and VeriChip scanners. |
| Applied Digital Solutions, Inc....announced that its wholly owned subsidiary, VeriChip Corporation, has signed a non-exclusive distribution agreement with Speko Corporation. |
| Speko is a leading personal security company in Mexico that provides a full range of security products for government agencies, commercial enterprises and individuals. Speko's line-up of products includes personal security devices, building access controls, armored plating for vehicles and bulletproof vests. |
| According to the Distribution Agreement, Speko has agreed to purchase 300 VeriChips and 20 proprietary VeriChip scanners. The Agreement calls for an initial term of six months with a minimum sales quota of an additional 600 VeriChips and 60 proprietary VeriChip scanners. Assuming the minimum sales quota is met, the Agreement will renew for successive six-month terms. Minimum sales quota revenues for the initial six-month term will be $250,000. Both companies anticipate that sales volume for the first six months will produce a revenue stream of up to $2 million.243 |
| F. | Latin America, World: Subdermal GPS Personal Location Device: Strong Demand for Development of a Subdermal GPS Device from All Over The World, But Particularly in Latin America: April 26, 2002 |
| Applied Digital Solutions announced plans to accelerate development of a Subdermal GPS device in response to "enormous customer demand." |
| Applied Digital Solutions, Inc....announced that in response to enormous customer demand it will accelerate its development of what it calls PLD or "personal location device" - a subdermal device that includes GPS emergency location capability. |
| A working prototype of the device is expected in approximately seven months. |
| Commenting on the announcement, Scott R. Silverman, President of Applied Digital Solutions said: "Based on what we're hearing from potential customers and partners around the world, the time has come for PLD - our new personal location deviceÉ[E]ver since we announced VeriChip(TM) last December, we've heard strong demand for development of a subdermal GPS device. We're hearing this from all over the world, but particularly in Latin America where the tragedy of commercial kidnappings has become rampant. We've decided that accelerating the development of PLD is a valuable service to enhancing personal safety and security." |
| Mr. Silverman continued: "We're committed to providing customers with a full range of personal safeguard technologies - technologies that enhance personal safety, security and peace of mind. Customers can choose the wearable Digital Angel device. They can choose to "get chipped(TM)" with our VeriChip medical and security identification implant. And now they'll have another option - the implantable PLD for those who want the added security of a personal GPS location feature."244 |
| G. | World: 4,000 Worldwide Await Chip: Palm Beach Post Staff Writer: Friday, May 10, 2002 |
| The "4,000 worldwide await chip" subheading in a May 10, 2002 article by Palm Beach Post Staff Writer Deborah Circelli introduced a brief statement of current demand and future plans. |
| In two to three years, however, the company's [Applied Digital Solutions] goal is for 90 percent of U.S. hospitals, clinics and paramedics to have the scanners. The company hopes one day it will become routine for all hospitals to scan patients who come into emergency rooms unable to speak, or having Alzheimer's. |
| About 4,000 people worldwide have registered with the company to be implanted with the VeriChip, [President Scott] Silverman said.245 |
| H. | South Korea; Mexico, Ecuador and Europe: VeriChip Corporation Signs Agreement for South Korean Market; Mention of Mexico, Ecuador and Europe: Business Wire; December 6, 2002 |
| Applied Digital Solutions signed a distribution agreement with Global Integrated Technology, Inc. for VeriChips and VeriChip scanners. |
| Applied Digital Solutions, Inc. (Nasdaq:ADSX) an advanced technology development company, announced today that its wholly owned subsidiary, VeriChip(TM) Corporation, has signed an exclusive, five-year distribution agreement for the South Korean market with Global Integrated Technology, Inc. (GIT), an American company headquartered in California. The agreement grants GIT the exclusive rights to market and distribute all applications of VeriChip products in South Korea, provided minimum purchase requirements and certain other conditions are met. |
| This distribution agreement continues VeriChip's international expansion. As previously announced, the Company recently signed multi-million dollar distribution agreements for Mexico and Ecuador. In Europe, the Company has appointed its first authorized representative with extensive experience in both commercial and government sectors.246 |
| I. | Mexico: "VeriChipTM Inventories Shipped to VeriChip's Exclusive Distributor in Mexico": Business Wire; April 4, 2003 |
| Applied Digital Solutions shipped VeriChips to Mexico. |
| Applied Digital Solutions, Inc. (Nasdaq: ADSX) an advanced technology development company, announced today that its wholly owned subsidiary, VeriChip Corporation, has completed initial product shipments to the Company's exclusive distributor in Mexico... |
| The product shipments to Mexico fulfilled the initial purchase quota contained in the exclusive VeriChip distribution agreement, announced last October, with Sistemas de Proteccion Integral de Mexico, S.A. de C.V. (SPIMSA), a large private security company in Mexico City, Mexico which is marketing VeriChip through its SoluSat subsidiary. The agreement calls for a minimum purchase quota in excess of $9 million through the end of 2006. |
| The initial product shipments to SoluSat - consisting of 1,000 implantable VeriChips and 100 proprietary scanners - were completed in the first quarter of 2003. If annual minimum sales quotas are met, SoluSat will retain the exclusive right to distribute VeriChip and related products in Mexico. |
| Established over 15 years ago, SPIMSA Corporation provides clients with a range of security-related services, including building access control, personal security, and security consulting. SPIMSA's client base includes some 150 major corporate entities, along with various agencies of government at the federal, state and local levels in Mexico. Marketing and distribution efforts involving VeriChip are expected to be widespread geographically in Mexico, covering a diverse mix of potential customers and meeting a range of needs in the areas of access security and emergency identification.247 |
| J. | Latin America: Mexico and Colombia; Israel: The Boston Globe: May 20, 2003 |
| Boston Globe Correspondent Angela Swafford reported on interest in Mexico and Colombia for Applied Digital Solution's Personal Locator Device. |
| The company [Applied Digital Solution] is field testing its Personal Locator Device, or PLD, which ADS says could help track lost children, sick elderly family members, mountain climbers who get lost, or kidnap victims. Company officials say they have been inundated with requests from private companies in Latin America, especially Mexico and Colombia. |
| The PLD is still years away from wide use, according to Keith Bolton, ADS's chief of technologies. The working prototype is rather largeÑ2 1/2 inches in diameterÑand would require major surgery for implantation (though it appears some Israeli secret service agents already carry something similar). It is powered by a pacemaker battery, and just like in a Tom Clancy book, it would let anyone with access to the PLD system follow the wearer anytime, anywhere in the world, at the click of a mouse.248 |
| K. | International: "VeriChip Subdermal Personal Verification Microchip to Be Featured at IDTechEX 'Smart Tagging in Healthcare' Conference in London, April 28-29, 2003;" Temperature-Sensing Microchip Technology and Potential Human Healthcare Applications: Business Wire: April 25, 2003 |
| At a "Smart Tagging in Healthcare" conference in London, Applied Digital Solutions planned that an "international audience will also see first-ever demonstration of implantable temperature-sensing microchip and learn about potential human healthcare applications." |
| Applied Digital Solutions, Inc. (Nasdaq: ADSX) an advanced technology development company, announced today that its wholly owned subsidiary, VeriChip Corporation, has been invited to make two presentations at the upcoming IDTechEx "Smart Tagging in Healthcare" conference in London, April 28-29, 2003. |
| Dr. Richard Seelig, Vice President of Medical Applications for VeriChip Corporation, will provide a live demonstration of VeriChip(TM) and discuss its potential healthcare applications - which are subject to regulation by the US Food and Drug Administration - including: |
| -- Implanted medical device identification |
| -- Emergency access to patient-supplied health information |
| -- Portable medical records access |
| -- In-hospital patient identification |
| -- Medical facility connectivity via patient |
| -- Patient/therapy integration |
| -- Inter-facility patient identification |
| -- Additional healthcare applications which are not Internet dependent, including disease/treatment management of at-risk populations |
| Dr. Seelig will also provide the first-ever public demonstration of a new temperature-sensing microchip technology, marketed, patented and first announced by Digital Angel Corporation (AMEX: DOC) in February 2003. This new Radio Frequency Identification (RFID) microchip has similar dimensions and performance characteristics as VeriChip, but it can also obtain and transmit body temperature data. |
| This technology for human healthcare applications is subject to appropriate regulations in the US and other jurisdictions. The potential healthcare applications of the new temperature-sensing microchip include, but are not limited to, the following broad treatment categories: |
| -- Chemotherapy treatment management |
| -- Chronic infection monitoring |
| -- Organ transplantation treatment management |
| -- Infertility management |
| -- Postoperative monitoring |
| -- Critical care monitoring |
| -- Medication monitoring |
| -- Response to treatment evaluation |
| IDTechEx refers to this London conference as the "first major" conference devoted to the potential healthcare benefits of smart tagging technologies. As described by IDTechEx, the conference is intended to help attendees "learn how smart labels can save lives, reduce errors, improve health, reduce costs and lead to new services."249 |
| L. | International: "Subdermal VeriChip and New Temperature-Sensing Microchip Technology Successfully Demonstrated at London Healthcare Conference - April 28-29, 2003": Business Wire: April 30, 2003 |
| Applied Digital Solutions announced that "it successfully demonstrated its subdermal VeriChip personal verification microchip, as well as a new, implantable, temperature-sensing microchip technology at the IDTechEx 'Smart Tagging in Healthcare' conference held in London, April 28-29, 2003." |
| Applied Digital Solutions, Inc. (Nasdaq: ADSX) an advanced technology development company, "announcedÉthat it successfully demonstrated its subdermal VeriChip personal verification microchip, as well as a new, implantable, temperature-sensing microchip technology at the IDTechEx 'Smart Tagging in Healthcare' conference held in London, April 28-29, 2003." |
| Dr. Richard Seelig, Vice President of Medical Applications for VeriChip Corporation, provided the international audience with a live demonstration of VeriChip and discussed its many potential healthcare applications - which are subject to regulation by the US Food and Drug Administration. |
| Dr. Seelig also provided the first-ever public demonstration of a new temperature-sensing microchip technology, marketed, patented and first announced by Digital Angel Corporation (AMEX: DOC) in February 2003. This new Radio Frequency Identification (RFID) microchip has similar dimensions and performance characteristics as VeriChip, but it can also obtain and transmit body temperature data. In the live demonstration, a volunteer placed the microchip just behind her ear then passed the handheld scanner over the chip to instantly obtain her temperature reading. Human healthcare applications of this technology are subject to appropriate regulations in the US and other jurisdictions.250 |
| M. | Mexico: Healthcare Applications of VeriChip Promoted in Mexico: July 2003 |
| 1. | "SOLUSAT MEDICA to Promote VeriChip's Healthcare Applications in Mexico" Business Wire; July 17, 2003 |
| SOLUSAT MEDICA is designed to promote VeriChip's healthcare applications in Mexico. |
| Applied Digital Solutions, Inc. (Nasdaq: ADSX), an advanced technology development company, announced today that its exclusive distributor of VeriChip(TM) products and services in Mexico is launching "SOLUSAT MEDICA", a special unit designed to promote the many healthcare-related applications of VeriChip in Mexico... |
| Approximately 40 TV, radio and print journalists are expected to cover the press conference and live "chipping" - a simple, outpatient procedure that requires only a few minutes for a local anesthetic and insertion of the chip with a specially designed needle. |
| ...According to SOLUSAT, discussions are underway for the donation of scanners to institutions such as the Red Cross and the Mexican Alzheimer's Association and several other public organizations.251 |
| 2. | Mexican Company Hopes to Implant Chips in 10,000 People : Associated Press on Newsday.com: July 18, 2003 |
| Associated Press Writer Alonso Soto Joya reported on plans to implant chips in 10,000 people in Mexico. |
| Borrowing from technology for tracking pets, a U.S. company on Thursday launched Mexican sales of microchips that can be implanted under a person's skin and used to confirm health history and identity... |
| In a two-hour presentation, Palm Beach, Fla.-based Applied Digital Solutions Inc. introduced reporters to the VeriChip... |
| Antonio Aceves, the director of the Mexican company in charge of distributing the chip here, said that in the first year of sales, the company hoped to implant chips in 10,000 people and ensure that at least 70 percent of all hospitals had the technology to read the devices... |
| Company officials said they are working on developing similar technology that would use satellites to help find people who may have been kidnapped. |
| While the idea of using the chip to track people has raised privacy concerns in the United States, the idea has been popular with Mexicans.252 |