Digital Angel Tags Selected by Superior Livestock Auction for Process Verified Program

. October 13, 2007

Digital Angel Corporation (the “Company”) (AMEX:DOC), an advanced technology company in the field of rapid and accurate identification, location tracking and condition monitoring of high-value assets, announced today that Superior Livestock Auction, the pioneer and leader in marketing load-lots of cattle via satellite and the Internet, has selected Digital Angel’s animal applications unit, Destron Fearing, to manufacture an exclusive tag for its new PVP (Process Verified Program) program – Superior Verified.

Superior Verified provides age and source verification to help producers differentiate their cattle with buyers and leverage that data to take advantage of a broader range of marketing options, a key factor in capturing the value of production information.

“We are pleased to supply one of the largest livestock marketing firms in the United States with quality, proven identification products that enable the profitable sharing of information,” says Rae Powell, vice president of sales and marketing with Destron Fearing. In Superior Verified, these RFID tags allow enrolled cattle to retain their identity and documentation, even as the cattle move outside the producer’s control or ownership. In fact, that data can stay with the animal all the way through the feedlot phase and to processing, where the beef can potentially be sold through value-added programs.

“One of the things that was of interest to us is that Destron Fearing manufactures its tags in number-sequential order, as opposed to other companies that manufacture in random-number order,” explains Jim Kelley, business manager at Superior Livestock Auction. “It makes it easier to keep up with cattle and their information.”

Kelley says the first 90,000 head of cattle Superior marketed that were age and source verified brought an average premium of $1.77 per hundredweight over similar cattle sold without the verification. That’s in addition to other vaccination-related premiums.

“I think whenever we get the data back from our summer sales, that premium this year might be as much as $2 to $3 per hundredweight,” says Kelley. “We have seen double or triple the interest in our PVP program compared to last year. More and more people are realizing that there are premiums associated with age and source verification.”

Furthermore, producers that participate in Superior Verified don’t have to invest in a wand reader or enter tag numbers into a database. Qualified producers simply provide the program’s data provider, IMI Global, with supporting documents (calving records, etc.) and place the tag in each animal’s ear.

“Digital Angel welcomes the opportunity to partner with Superior Livestock Auction to continue bringing innovation to livestock marketing,” says Powell.

About Digital Angel Corporation

Digital Angel Corporation (www.DigitalAngelCorp.com) 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), which also owns a majority position in VeriChip Corporation (NASDAQ:CHIP).

Category: Auction News

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