DIGITAL ANGEL’S DESTRON FEARING UNIT ANNOUNCES

AT CATTLE INDUSTRY ANNUAL CONVENTION AND TRADE SHOW JANUARY 28

SO. ST. PAUL, MN (January 26, 2009) -- Digital Angel (NASDAQ: DIGA), an advanced technology company in the field of animal identification and emergency identification solutions, announced today the introduction of its new r.Tag™ system, a flexible and robust active RFID tag technology that allows the automatic collection of identification and data in correlation with specific locations. The r.Tag system will be showcased at the 2009 Annual Cattle Industry Convention and National Cattlemen’s Beef Association (NCBA) Trade Show, to be held January 28-31 in Phoenix, AZ, the industry’s premier annual event.

The electronic transponder r.Tags can be read at distances up to100 feet, and when coupled with the system’s r.Tag Position Indicators, an animal’s location can be established within a few feet. The low-cost scanners feature solar-powered backup batteries, and all communications are wireless with no cabling required.

“This exciting, next-generation livestock identification system is a good example of how Destron Fearing maintains its industry reputation for cutting-edge technological innovation. In tests we have found that an entire truckload of cattle can be read and identified accurately while the vehicle passes by a single reader. Putting this system alongside our new CoolTag™ program, which qualifies for the USDA’s Country of Origin Labeling mandate, we think that 2009 will be a great year for our new product releases,” commented Digital Angel Chief Executive Officer Joseph J. Grillo. “We are looking forward to the NCBA trade show and we’ll have a large presence there to talk to our customers and other industry participants,” he added.

In addition to active RFID technology, solar-powered backup scanner batteries and wireless connectivity, the r.Tag system features high-frequency 2.4 GHz operation for long-range reading; the ability to manage high throughput rates for processing animals in the commercial environment, including the latest anti-collision software for reading cattle moving in herds as opposed to single-file; remote read/write capability; interactive communication via the internet for optimal information management; and large memory capacity for data storage on the animal’s tag or in databases.

The r.Tag system was developed by Geissler Technologies, which Digital Angel acquired in January 2008, and forms part of the rich new product pipeline that came with this business. The system has been field-tested for 18 months in a broad range of environments, including -20 degree Fahrenheit Minnesota winters.

About Digital Angel

Digital Angel (www.digitalangel.com) is 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 tracking using visual and radio frequency identification (RFID) ear tags; and global positioning systems (GPS) search and rescue beacons for use on aircraft, ships and boats, and by adventure enthusiasts.

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. 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 17, 2008, 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.

Contacts:

Digital Angel Jay McKeage (651) 554-1564 jmckeage@digitalangel.com

Destron Fearing Dan Ellsworth (913) 558 4378 dellsworth@destronfearing.com

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