FDA Releases Final Rule for Unique Device Identification

Digital Angel Corporation (“Digital Angel” or the “Company”) (OTC Markets: DIGA), a provider of implantable medical device identification and radiation dose measurement technologies, following its recent share exchange with VeriTeQ Acquisition Corporation (“VeriTeQ”), announced today that the U.S. Food and Drug Administration (“FDA”) has released its Final Rule for Unique Device Identification (“UDI”).

The Final Rule for UDI requires all medical devices distributed in the U.S. that are intended to be used more than once and intended to undergo any form of reprocessing before each use to carry a UDI. The FDA Rule was issued in response to the passage of the FDA Safety and Innovation Act, which directed the federal agency to develop regulations that would create a UDI system for medical devices. Prior to the finalization of the FDA Final Rule, the FDA published a Proposed Rule, which included a requirement that all implantable medical devices have a “direct part marking” on the device itself rather than just labeling of disposable packaging. The direct part marking mandate for all medical devices that are implantable was revised in the FDA Final Rule to include only medical devices that are reprocessed.

Based on the Final Rule and existing relationships the Company has established with breast implant and vascular port manufacturers to identify those devices through VeriTeQ’s Q Inside Safety Technology, the Company believes it is well positioned to continue its market penetration within those categories. Furthermore, the Company believes that the changes to the Final Rule open new potential business lines in reusable or reprocessed medical devices in addition to the business opportunity in implantable medical devices.

“We believe the FDA Proposed Rule included identification of both reusable and non-reusable implantable medical devices because such identification offers an added level of patient safety and accurate device identification at the point of care or in the event of a recall, and that remains the case,” stated Scott R. Silverman, Chairman and Chief Executive Officer of VeriTeQ. “Although the FDA is not requiring manufacturers to offer non-reusable implantable devices with unique identification direct part marking, we believe prudent manufacturers will do so, patient advocacy groups will demand it, and the inevitable product litigation will make it financially practical.”

VeriTeQ’s Q Inside Safety Technology is an FDA cleared radio frequency identification microchip that can be used to identify an implanted medical device from outside of the body with a handheld reader.

About Digital Angel and VeriTeQ

Digital Angel, through its VeriTeQ wholly-owned subsidiary, develops innovative, proprietary RFID technologies for implantable medical device identification, and dosimeter technologies for use in radiation therapy treatment. VeriTeQ offers the world's first FDA cleared RFID microchip technology that can be used to identify implantable medical devices, in vivo, on demand, at the point of care. VeriTeQ's dosimeters provide patient safety mechanisms while measuring and recording the dose of radiation delivered to a patient in real time. For more information on VeriTeQ, please visit www.veriteqcorp.com.

Statements in this press release about our future expectations, including without limitation, the likelihood that VeriTeQ is well positioned to continue its market penetration within breast implant and vascular port manufacturers; the likelihood that the changes to the Final Rule open new potential business lines in reusable or reprocessed medical devices in addition to the business opportunity in implantable medical devices; the likelihood that prudent manufacturers will offer non-reusable implantable devices with unique identification direct part marking, patient advocacy groups will demand it, and the inevitable product litigation will make it financially practical; constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. These risks and uncertainties include, without limitation, the ability to promptly and effectively integrate the businesses of Digital Angel and VeriTeQ; VeriTeQ’s ability to target the UDI sector and medical device manufacturers; VeriTeQ’s ability to raise capital; as well as other risks. Additional information about these and other factors may be described in future filings with the Securities and Exchange Commission 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.