Digital Angel to Sell Sarbe Unit

Digital Angel Corporation (OTCBB: DIGA), an advanced technology

company in the field of animal identification and emergency identification solutions, announced today that it has entered into a definitive agreement to sell its SARBE unit in the United Kingdom for approximately $2.4 million. The purchaser, France-based Orolia Group, is a high-tech firm specializing in positioning; navigation and timing solutions for critical operations.

The deal will help insure success on production of the PELS (Personal  Emergency Locator System) contract with the UK Ministry of Defense which

Signature Industries Limited (Signature Industries), a Digital Angel Company will retain. While the PELS contract, which is valued at $7 million, is not part of the proposed transaction, The Orolia Group will provide resources to help manage the production phase of the contract for Signature Industries.

"This transaction provides Digital Angel with a significant number of
resources including; program and operational management, procurement, IT
support, as well as financial resources associated with the purchase price of the SARBE business. These resources will help Signature Industries complete the production phase of the contract it has with the UK Ministry of Defense," commented Joseph Grillo, Digital Angel's Chief Executive Officer. "In addition to this transaction, we also expect to announce additional information associated with the PELS contract in the coming days when final contract amendments are officially signed between Signature Industries and the UK Ministry of Defense."

The key terms of the SARBE transaction are as follows:

• Structured as a cash-free, debt-free sale of assets for $2.4 million cash consideration
• Closing to take place upon satisfaction of closing conditions targeted for  June 2011

Mr. Grillo added, "We are working on determining how the sale of SARBE
and the finalized amendments to the PELS contract will impact our business model and cash position. It is our expectation that these developments will provide us with additional clarity on dividend distributions to Digital Angel Shareholders that were recently proposed in proxy statements related to the sale of Destron Fearing."

About Orolia SA

Orolia is a high-technology group specialized in precise Positioning, Navigation and Timing. Orolia provides high-precision electronics equipments that generate, distribute, measure and process the High-precision Time; Frequency signals that Critical Operations use to detect, trace, control, analyze or synchronize time and location-critical events. For more information attend http://www.orolia.com/

About Digital Angel
Digital Angel (OTCBB: DIGA) 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 dentification, 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.