DESTRON FEARING CORPORATION TO BE ACQUIRED BY ALLFLEX USA, INC. FOR $25 MILLION

SO. ST. PAUL, MN – May 9, 2011 – Digital Angel Corporation (OTCBB: DIGA), an advanced technology company in the field of animal identification and emergency identification solutions, announced today that it has entered into a definitive agreement with Allflex USA, Inc. to sell its animal identification business, Destron Fearing Corporation, for a purchase price of $25 million.
The cash deal is subject to the satisfaction of customary closing conditions, including approval by the holders of a majority of the outstanding shares of Digital Angel Corporation. Closing adjustments, payment of debt and accrued liabilities, escrowed funds and the value of assumed liabilities will reduce the proceeds received from this transaction.
“After exploring all available alternatives and reviewing a number of scenarios with AgriCaptial Corporation, an investment bank hired to evaluate the value of the business and advise the Board of Directors on its strategic options, it was determined that selling Destron Fearing was the best solution to maximize the value of the business for Digital Angel’s stockholders and provide the best opportunity for Destron Fearing employees, partners, and customers,” said Joe Grillo, Chief Executive Officer of Digital Angel Corporation.
Additional information will be available in Form 8-K that Digital Angel will file with the Securities and Exchange commissions within four business days.
A stockholder meeting and vote is expected to be scheduled in June 2011.
About Destron Fearing Corporation and Digital Angel Corporation
Destron Fearing Corporation is a subsidiary of Digital Angel Corporation (OTCBB: DIGA), an advanced technology company in the field of animal identification and emergency identification solutions. Digital Angel Corporation’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 impact of the new orders 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 March 31, 2011, 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.
Important Additional Information will be Filed with the SEC
This press release may be deemed to be proxy solicitation material in respect of the proposed transaction. In connection with the proposed transaction, Digital Angel Corporation will file or furnish relevant documents, including a proxy statement, concerning the proposed transaction with the SEC. Investors and stockholders of Digital Angel Corporation are urged to read the proxy statement and other relevant materials when they become available because they will contain important information about Digital Angel Corporation and the proposed transaction. The final proxy statement will be mailed to Digital Angel Corporation stockholders.
Investors and stockholders may obtain a free copy of the proxy statement and any other relevant documents filed or furnished by Digital Angel Corporation with the SEC (when available) at the SEC’s Web site at www.sec.gov. In addition, investors and stockholders may obtain free copies of the documents filed with the SEC by Digital Angel Corporation by going to the SEC Filings website portion of Digital Angel Corporation’s website at www.digitalangel.com/sec.php.
Digital Angel Corporation and its directors and certain executive officers may be deemed to be participants in the solicitation of proxies from Digital Angel Corporation stockholders in respect of the proposed transaction. Information about the directors and executive officers of Digital Angel Corporation and their respective interests in Digital Angel Corporation by security holdings or otherwise will be set forth in the proxy statement that will be filed by Digital Angel Corporation with the SEC. Stockholders may obtain additional information regarding the interests of Digital Angel Corporation and its directors and executive officers in the merger, which may be different than those of Digital Angel Corporation stockholders generally, by reading the proxy statement and other relevant documents regarding the merger, when filed with the SEC. Each of these documents is, or will be, available as described above.

How many species of animals can be microchipped?

Many species of animals have been microchipped, including cockatiels and other parrots, horses, llamas, alpacas, goats, sheep, miniature pigs, rabbits, deer, ferrets, penguins, snakes, lizards, alligators, turtles, toads, frogs, rare fish, mice, and prairie dogs -- even whales and elephants. The U.S. Fish and Wildlife Service uses microchipping in its research of wild bison, black-footed ferrets, grizzly bears, elk, white-tailed deer, giant land tortoises and armadillos.

Animal microchips of Doowa have used on cattle, goats,sheep,dog ,cat and sturgeon.

Since 2005, our products have been working well.

United States Animal Identification Plan

United States Animal Identification Plan (USAIP) — Officials from approximately 70 animal industry organizations and government agencies have been working since early 2002 on a plan for a national system to identify that might follow food animals from birth to slaughter. The primary purpose is to trace animals back from slaughter through all premises within 48 hours of an animal disease outbreak, in order to determine the disease’s origin and to contain it quickly. The plan calls for recording the movement of individual animals or groups of animals in a central database or in a seamlessly linked database infrastructure.

USDA’s Animal and Plant Health Inspection Service (APHIS) is to coordinate animal ID activities in cooperation with state animal health authorities and producers for disease tracking purposes. Congressional interest in animal ID intensified after a cow with bovine spongiform encephalopathy (BSE) was discovered in the United States in December 2003. USDA in 2004 accelerated work on animal ID, and is incorporating major elements of the USAIP into what it has termed the National Animal Identification System (NAIS). Among the issues in establishing a national program are privacy of producer records, implementation cost and who should pay, and whether animal ID should be mandatory or voluntary.

Doowa RFID supply one step solution for animal identification, it will be more workable prices, more excellent quality and more prompt delivery.

Pet-licence fees increase

Watch your mail for a reminder to renew your pet's licence this month.

Licences for dogs and cats for 2011 are available now. It costs $100 to license a non-sterilized dog or cat, $20 for a sterilized cat and $25 for a sterilized dog.

Those costs are up from last year. The non-sterilized rate is up by $40 and the sterilized rates are each up by $5.

The increases will be used to pay for animal control and impound services performed by the Regina Humane Society on behalf of the city, according to a city media release.

Pet licences are available at City Hall, the humane society and veterinary offices.

Licensing pets helps to reduce the number of stray and nuisance animals, according to the city.

Pets can also be returned safely if caught running at large or if found injured. Even "stay-at-home" pets can escape through an open door or window.

Fines start at $100 for owners if their dog or cat is caught running at large.

If sterilized licensed pets are found running at large, they will be released to their owners without charge once each year. If they are unlicensed, there is an extra fine starting at $150.

Even if your cat or dog already has an identifying tattoo or microchip, it still needs to be licensed. Remember to supply the tattoo or microchip number when you purchase the licence.

It is also important to update information on your pet if you have moved, sterilized your pet or your pet is no longer with you. Licences are non-transferable between owners and pets.

Microchip implant (animal)

A microchip implant is an identifying integrated circuit placed under the skin of a dog, cat, horse, or other animal. The chips are about the size of a large grain of rice and are based on a passive RFID (Radio Frequency Identification) technology.

The use of externally attached microchip devices such as RFID ear tags (piercings rather than implants) is another, related method commonly used for identifying farm and ranch animals other than horses. In some cases the external microchips may be readable on the same scanner as the implanted style.

Histroy of Ear tag

Although ear tags were developed as early as 1913 as a means to identify cattle when testing for tuberculosis, the significant increase of use of ear tags appeared with the outbreak of BSE in UK. Today, ear tags in a variety of designs are used throughout the world on many species of animal to ensure traceability, to help prevent theft and to control disease outbreaks.

The first ear tags were primarily steel with nickel plating. After World War II, larger, flag-like, plastic tags were developed in the United States. Designed to be visible from a distance, these were applied by cutting a slit in the ear and slipping the arrow-shaped head of the tag through it so that the flag would hang from the ear.

In 1953, the first two-piece, self-piercing plastic ear tag was developed and patented. This tag, which combined the easy application of metal tags with the visibility and colour options of plastic tags, also limited the transfer of blood-borne diseases between animals during the application process.

Some cattle ear tags contain chemicals to control insects such as buffalo fly etc. Metal ear tags are used to identify the date of regulation shearing of stud and show sheep. Today, a large number of manufacturers are in competition for the identification of world livestock population.

The United States Department of Agriculture maintains a list of manufacturers approved to sell ear tags in the USA for the National Animal Identification System.

The International Committee for Animal Recording (ICAR) controls the issue electronic tag numbers.

The National Livestock Identification System (NLIS) is Australia's system for tracing cattle, sheep and goats from birth to slaughter.

RFID enables buyer to know cattle history

Due to increased exports and diminishing cattle supply, the demand for source and age verified cattle are constantly growing, according to the Cattle Network. With that in mind, producers who wish to continue making money are faced with the dilemma of a need for method of verifying their cattle so that they can continue to remain in business.

The folks at AngusSource have developed a solution that will allow you to do just that. It’s Process Verified Program (PVP), Gateway that offers producers the ability to verify only the source and age of their calves.

Various options are available such as the RFID PCT tag, which is designed to meet the RFID requirements of marketing outlets, within a single tag. Or producers have the option to combine the connivance of RFID PCT with a visual tag for enhanced identification with the RFID ChoiceSet tag.

Producers may custom-print a management number on each visual tag free of charge. For a small additional fee, producers may also custom-print their logo, brand, name and/or phone number on the back of visual tags. Customization is not expected to cause any delays in the manufacturing process.

In the United States all tag options are available with a traditional 15-digit unique animal number or a National Animal Identification System “840” option.

Doowa technology provide the ear tag complied with these standards