DIGITAL ANGEL'S DESTRON FEARING ENTERS INTO AGREEMENT WITH BRAZIL'S D4 MICROCHIP TO PROVIDE LIFECHIPS™ IN THE STATE OF SÃO PAULO, BRAZIL

SO. ST. PAUL, MN (April 19, 2010) - Digital Angel (NASDAQ: DIGA), an advanced technology company in the field of animal identification and emergency identification solutions, announced today that its Destron Fearing unit has entered into a new agreement to provide its companion animal implantable RFID microchips, branded LifeChips™, to D4 Microchips. D4, based in Americana, state of São Paulo, Brazil, is a distributor of RFID microchips and readers to the companion pet market. The initial term of the contract is for twelve months, and is automatically renewable for an additional twelve months on an evergreen basis.

While Destron Fearing has sold products to D4 in the past, this new agreement relates to an initiative to protect companion pets and horses in four cities surrounding two major highways in the state of São Paulo. These highways, the Bandeirantes and Anhanguera, are maintained and operated by AutoBAn, a private company based in São Paulo, Brazil through a state concession. AutoBAn and D4 have entered into a separate agreement to promote animal safety in the region. Pursuant to the agreement, AutoBAn intends to purchase LifeChips from D4, and plans to support the project through an extensive media campaign, including distribution of folders at toll booths and at other locations along the highways; electronic billboard displays; banners at local companion pet events; print advertising in a number of magazines; and information updates on their website, www.autoban.com.br/concessionaria/home.

Joseph J. Grillo, Chief Executive Officer of Digital Angel, said: "We are proud to be involved in this project to help the citizens of Brazil protect their companion pets. This is just the first of a number of new initiatives we are working on in South America, a territory which we think has tremendous potential for our companion pet, equine and livestock businesses."

The four cities in the initial target area are estimated to have a population of approximately 600,000 companion animals. According to industry participants, Brazil has the second largest population of dogs in the world, approximately 30 million, after the estimated 61 million dogs in the U.S.

LifeChips can be implanted in dogs, cats or horses, but it is expected that the primary market at the outset in São Paulo state will be dogs. Pursuant to the agreements, the chips will be implanted by Zoonosis Center Control, the local municipal animal control agency, in São Paulo city and the other cities around the highways. The database of registered animals is to be maintained by Abrachips, a system developed and operated by D4.

About D4 Microchip

Based in Americana, state of São Paulo, Brazil, D4 is an established distributor of companion pet products, especially RFID systems, including chips and readers. For further information please visit www.d4microchip.com.br.

About Destron Fearing and Digital Angel

Destron Fearing is a subsidiary of Digital Angel (NASDAQ: DIGA), an advanced technology company in the field of animal identification and emergency identification solutions. Digital Angel'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.

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 agreement 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 April 1, 2010, 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.