| XVIII. | Human Microchip Implant: Registry |
| Posted: January 26, 2004 |
| A. | Human Microchip Implant Registry Launch Set for May 1, 2002: April 9, 2002 Announcement |
| The launch date of a commercial registry for human microchip implants was set for May 1, 2002 and first announced on April 9, 2002. Following are excerpts from an April 9, 2002 Business Wire press announcement. |
| VeriChip(TM) subscribers can store pertinent personal verification and healthcare information in secure database |
| Applied Digital Solutions, Inc. (Nasdaq:ADSX), an advanced technology development company, announced today that its wholly owned subsidiary, VeriChip Corporation, has selected May 1, 2002, for the launch of its new Global VeriChip Subscriber (GVS) Registry service. |
| This program will enable VeriChip subscribers to store pertinent personal verification and healthcare information in the company's secure database. |
| VeriChip is a miniaturized, implantable, radio frequency identification device (RFID) that can be used in a variety of security, emergency and healthcare applications. About the size of a grain of rice, each VeriChip is composed of FDA-accepted materials and contains a unique verification number that can seamlessly integrate to the GVS Registry. |
| The GVS Registry is hosted and maintained by Digital Angel Corporation's (Amex: DOC) state-of-the-art, FDA-compliant operations center in Owings, Maryland. |
| Information provided by the subscriber will be stored in the GVS Registry database. Only information authorized by the subscriber will be available for access via VeriChip's proprietary scanner. Instant access to such vital information as allergies to medications, medical device implants, pre-existing medical conditions and emergency contact numbers could save lives in an emergency and enhance the peace of mind of subscribers and their loved ones. |
| GVS Registry participants will pay a monthly subscription fee, enabling them to include and change pertinent information in the secure GVS Registry database. Associate Registry subscribers such as healthcare clinics, hospitals, search and rescue units, and EMTs will be able to use proprietary VeriChip scanners to read a subscriber's VeriChip and gain access to the subscriber's Registry information if authorized to do so by the subscriber. |
| Commenting on this announcement, Scott R. Silverman, President of Applied Digital Solutions, said: "The integration of secure software applications with proprietary, life-enhancing hardware defines the evolution of Applied Digital's Advanced Technology Group. VeriChip with its GVS Registry and Digital Angel with its proprietary Delivery System exemplify this integration. As VeriChip becomes the standard in emergency information and verification applications, we anticipate a rapid growth pattern in an estimated market that exceeds $15 billion. Our first-mover advantage and patented technology will enable Applied Digital to gain significant market share." |
| Silverman continued: "From a business view, the GVS Registry will provide a recurring revenue stream for both Applied Digital and Digital Angel Corporation. As the beneficial owner of approximately 82% of Digital Angel Corporation, we remain committed to enhancing the value of both companies through joint sales, marketing and technology efforts. The GVS Registry is the first example of how all Applied Digital-related companies will continue to integrate and grow."305 |
| B. | Human Microchip Implant Registry Ready: May 2, 2002 Announcement |
| The launch date of May 1, 2002 for a commercial registry for human microchip implants was first announced on April 9, 2002. Following are excerpts from a May 2, 2002 Business Wire press announcement stating that a commercial registry for human microchip implants is "ready" and "fully operational." |
| Applied Digital Solutions, Inc. (Nasdaq: ADSX), an advanced technology development company, announced today that its Global VeriChip Subscriber (GVS) Registry service is ready for the first-ever VeriChip "chipping" procedure on May 10, 2002 and VeriChip's official market launch in the United States. |
| The GVS Registry service, first announced April 9, 2002, supports VeriChip subscribers, authorized VeriChip centers and VeriChip System Affiliates (such as hospitals, EMTs, search and rescue units, and urgent care clinics) by providing immediate access to vital subscriber information in an emergency. |
| Full-scale marketplace operation of the GVS Registry service will begin with the historic Jacobs family "chipping" procedure on May 10, 2002. The procedure will be followed by a press conference and an invitation-only brunch for business partners and community leaders. During the press conference and the business brunch, Applied Digital executives will unveil more details about VeriChip's rollout plans. |
| VeriChip is a miniaturized, implantable, radio frequency identification device (RFID) that can be used in a variety of security, emergency and healthcare applications. About the size of a grain of rice, each VeriChip is composed of FDA-accepted materials and contains a unique verification number that can seamlessly integrate to the GVS Registry via a proprietary VeriChip scanner. Instant access to such vital information as allergies to medications, medical device implants, pre-existing medical conditions and emergency contact numbers could save lives in an emergency and enhance the peace of mind of subscribers and their loved ones. |
| The new GVS Registry Service is hosted and maintained by Digital Angel Corporation's (Amex: DOC) state-of-the-art, FDA-compliant operations centers in Riverside, California and Owings, Maryland. Complementary, 24/7 call-center services are provided by a physician-supervised staff of support associates in Owings, Maryland. |
| The GVS Registry service will initially support VeriChip subscribers in South Florida who will be "chipped" during the company's initial product rollout beginning with the Jacobs family on May 10, 2002. Performed under the supervision of the company's first Authorized VeriChip Center in Palm Beach County, the rollout will feature the use of the first ChipMobile(TM) - a state of the art, medically equipped mobile unit that will deliver VeriChip to initial target markets such as elder care centers, critical care facilities and Generation Y events. The Palm Beach County rollout will last until June 30, 2002, at which time the company expects to move into other geographic markets and initiate nationwide distributor alliance programs. |
| Commenting on this announcement, Scott R. Silverman, President of Applied Digital Solutions, said: "As promised, the GVS Registry is now fully operational and is prepared to securely house subscriber information so it can be accessed by Authorized VeriChip Affiliates such as hospitals and EMS units. We're confident the GVS Registry's secure software and database will integrate seamlessly with the VeriChip product and proprietary scanners to provide our subscribers with instant access to potentially life-saving, accurate, complete emergency healthcare information stored in the Registry." |
| About VeriChip(TM) |
| VeriChip, first announced on December 19, 2001, is a miniaturized, implantable, radio frequency identification device (RFID) that can be used in a variety of security, emergency and healthcare applications. On April 4, 2002, the company announced that it had received written guidance that the U.S. Food and Drug Administration (FDA) does not consider VeriChip's personal verification device to be a regulated medical device, enabling the company to begin sales, marketing and distribution of VeriChip in the United States. About the size of a grain of rice, each VeriChip is composed of FDA-accepted materials and contains a unique verification number. That number is captured by briefly passing a proprietary, external scanner over the VeriChip. A small amount of radio frequency energy passes through the skin energizing the dormant VeriChip, which then emits a radio frequency signal transmitting the verification number. The company believes its first-mover advantage will enable it to gain significant market share in the emergency information and verification market that is estimated to exceed $15 billion. VeriChip Corporation is a wholly owned subsidiary of Applied Digital Solutions. |
| About Digital Angel Corporation |
| Digital Angel Corporation (Amex: DOC) was formed on March 27, 2002, in a merger between Digital Angel Corporation and Medical Advisory Systems, a global leader in telemedicine that has operated a 24/7, physician-staffed call center in Owings, Maryland, for two decades. Prior to the merger, Digital Angel Corporation was a wholly owned subsidiary of Applied Digital Solutions. Applied Digital Solutions is the beneficial owner of 19.6 million shares of Digital Angel Corporation. Digital Angel(TM) technology represents the first-ever combination of advanced biosensors and Web-enabled wireless telecommunications linked to the Global Positioning System (GPS). By utilizing advanced biosensor capabilities, Digital Angel will be able to monitor key body functions - such as temperature and pulse - and transmit that data, along with accurate emergency location information, to a ground station or monitoring facility. For more information about Digital Angel, visit www.digitalangel.net. |
| About Applied Digital Solutions, Inc. |
| Applied Digital Solutions (Nasdaq: ADSX) is an advanced technology development company that focuses on a range of early warning alert, miniaturized power sources and security monitoring systems combined with the comprehensive data management services required to support them. Through its Advanced Technology Group, the company specializes in security-related data collection, value-added data intelligence and complex data delivery systems for a wide variety of end users including commercial operations, government agencies and consumers. For more information, visit the company's website at http://www.adsx.com.306 |
| C. | Human Microchip Implant: Registry Service Fee: Noted January 9, 2003 |
| The Applied Digital Solutions "VeriChip Personal Identification System - Frequently Asked Questions" Web page contains the following information. |
| Q: Is there a fee for the GVS (Global VeriChip Subscriber) Registry service? |
| The GVS Registry subscription fee is $9.95 per month, billed automatically to subscriber's credit card.307 |