Digital Angel Corporation acquires assets of McMurdo Marine Electronics business

SOUTH ST. PAUL, Minn., 16 Dec. 2006. Digital Angel Corporation's London-based subsidiary, Signature Industries, has entered into an agreement to acquire certain assets and customer contracts of McMurdo Ltd., a U.K. manufacturer of emergency location beacons, from Chemring Group PLC. Digital Angel, developer and deployer of RFID and GPS technology, will purchase McMurdo for approximately $6.2 million, with additional deferred payments ranging from $0 to $3 million.

SOUTH ST. PAUL, Minn., 16 Dec. 2006.Digital Angel Corporation's London-based subsidiary, Signature Industries, has entered into an agreement to acquire certain assets and customer contracts of McMurdo Ltd., a U.K. manufacturer of emergency location beacons, from Chemring Group PLC. Digital Angel, developer and deployer of RFID and GPS technology, will purchase McMurdo for approximately $6.2 million, with additional deferred payments ranging from $0 to $3 million, dependent upon performance of the business following the sale.

"With a worldwide distribution network of approximately 60 outlets, McMurdo offers a vibrant and diverse customer base," says Kevin McGrath, CEO of Digital Angel. "This acquisition will more than double the revenue base of our survival radio business and broadens our product offerings in both the maritime and military sectors."

Through the SARBE division of Signature Industries, Digital Angel provides the military sector with survival radio technology, while McMurdo holds an edge in the maritime industry.

McMurdo develops and manufactures safety equipment technology. Its products, including the original EPIRB (Emergency Position Indicating Radio Beacon) and the first GMDSS (Global Maritime Distress and Safety System) approved Search And Rescue Transponder, have become standard lifesaving equipment on many military marine vehicles.

Emergency Locator Beacons represent a core competency and key growth market for Digital Angel and its subsidiary Signature Industries. Impending changes to the COSPAS-SARSAT satellite monitoring system mean much of the equipment currently in service will require replacement by February 2009. McMurdo and SARBE, with its improved range of radios such as the SARBE G2R and the SARBE 6-406, are positioned to exploit these opportunities in their respective markets.

The SARBE Division of Signature Industries manufactures a line of military search-and-rescue beacons and has worked closely with the Royal Marine Air Force for more than 30 years and the U.K. Ministry of Defense for more than 50 years.

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