Signature Industries Limited, a subsidiary of US based Digital Angel Corporation announces that it has agreed to purchase Chemring Group PLC’s subsidiary, McMurdo Marine Electronics, based in Portsmouth, UK.

Signature’s SARBE division and McMurdo are to combine to create the world’s largest supplier of satellite communication survival radios for the military aviation and maritime markets.

Following receipt of a cash deposit of £0.25 million, £2.8 million will be paid in cash at completion for fixed assets, stock and goodwill. Deferred contingent consideration of up to £1.5 million will be paid in December 2007.

Completion, which is conditional upon the transfer of certain product approvals, is expected to take place in the first quarter of 2007.

Both companies have a long history of supplying safety critical survival radio products. SARBE are the world leader in the military survival radio sector and McMurdo hold a similar position in the maritime industry.

With impending changes to the COSPAS-SARSAT satellite monitoring system, much of the equipment currently in service will require replacement by February 2009.
SARBE and McMurdo are well positioned to exploit the impending opportunities in their respective markets.

David Cairnie, CEO of Signature Industries stated “We are delighted that we have been successful in seizing this opportunity to bring together two of the strongest players in Survival Radio. We are now strategically well positioned to capitalise on the rapidly expanding markets in the military, marine and recreational sectors”

ABOUT Digital Angel Corporation

Digital Angel Corporation develops and deploys sensor and communications technologies that enable rapid and accurate identification, location tracking, and condition monitoring of high-value assets. Applications for the Company’s products include identification and monitoring of humans, pets, fish, poultry and livestock through its patented implantable microchips; location tracking and message monitoring of vehicles and aircraft in remote locations through systems that integrate GPS and geosynchronous satellite communications; and monitoring of asset conditions such as temperature and movement, through advanced miniature sensors.

Digital Angel Corporation is majority-owned by Applied Digital Inc. (Nasdaq:ADSX). For more information about Digital Angel, please visit www.DigitalAngelCorp.com.

ABOUT Signature Industries Limited SARBE Division

Signature Industries’ SARBE division is a major supplier of Search and Rescue (SAR) military air crew Personal Locator Beacons (PLBs) and other military rescue beacons for use in the event of an ejection or other event requiring emergency evacuation of an aircraft in a remote, possibly hostile location. Now in its fifth decade of developing and manufacturing PLBs, SARBE is the chosen supplier of PLBs in more than 40 countries worldwide.

SARBE pioneered the introduction of GPS pinpoint location technology for personal locator beacons in the early 1990s.
Recent successes include:-
· Supply of a £4.3 million contract to the Indian Air Force.
· Supply of the sophisticated G2R beacon for use by UK RAF Strike Command.
· A joint award with DAC for a development contract from the United States Air Force for the redesign of the survival beacon carried by all air crew.
· Award of a development and supply contract for a 10 day duration survival radio for use by submariners.

Signature Industries is majority owned by Digital Angel Corporation.
For more information about Signature Industries, visit www.signatureindustries.com, and for SARBE visit www.sarbe.com.

ABOUT McMurdo

Established in 1937, McMurdo leads the way in the development and manufacture of emergency location beacons and NAVTEX technology.
Based in Portsmouth England, McMurdo first produced a COSPAS-SARSAT (www.cospas-sarsat.com) approved EPIRB (Emergency Position Indicating Radio Beacon), in July 1989.
McMurdo further galvanised its position as the leader in safety equipment technology in 1992 with the release of the first GMDSS approved Search And Rescue Transponder (SART). Since that date McMurdo have continually led the way in the functionality and accuracy of emergency location beacons launching a PLB for use on land, sea or air in 2000. Also in that year GPS technology was introduced to both the EPIRB and the PLB

NAVTEX technology is another area where McMurdo has considerable expertise, developing and manufacturing NAVTEX receivers for both SOLAS and non-SOLAS vessels.

The McMurdo name stands for high quality products using the latest technology. Organisations such as the Royal Navy and the US Coastguard understand the importance of ultra-reliable high quality equipment which is why they have chosen McMurdo products for their vessels and their crew.

McMurdo products are used around the world, on land, sea and in the air, where safety is important you will find McMurdo.

For more information about McMurdo, visit www.mcmurdo.co.uk.