- - - -NEW LONDON, CT, August 27, 2012 - Digital Angel Corporation ("DIGA" or the "Company") (OTC Bulletin Board: DIGA), a distributor of two-way communications equipment in the U.K., announced today the appointment of L. Michael Haller as CEO, effective August 23, 2012, as part of an initiative to shift its business focus in a new strategic direction.

Company to enter Mobile Applications and Game Industry to Focus on New Business Opportunities

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Michael Haller, Game Industry Veteran with Turnaround Experience, Appointed as New CEO

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Company to Conduct Investor Conference Call on Monday August 27, 2012 at 9:00 a.m. EDT

As the new Chief Executive Officer of Digital Angel, Mr. Haller will focus on developing and implementing a new strategy focused on consumer applications and mobile games designed for tablets, smartphones, and other mobile devices.

After a thorough review process, Digital Angel's management team, Board of Directors and advisors have determined that the new strategic direction offers the most viable opportunity to build a sustainable business around the Company's current operations and maximize shareholder value.

Daniel Penni, Digital Angel's Interim Chief Executive Officer, commented, "We are excited to announce Michael Haller as CEO as the first step in our new corporate strategy.  Michael brings a long track record of success and we believe he has the leadership and experience needed to take Digital Angel in a new direction."

Mr. Haller joins the Company from the video game industry, with management experience both domestically and internationally in leading new product development and marketing efforts.  Most notably, as a member of the THQ, Inc. management team and its Board of Directors beginning in 1998, Mr. Haller was instrumental in taking THQ from near bankruptcy and growing it to the third largest third-party video game publisher in North America.  Mr. Haller later served as a Vice President at Electronic Arts, and General Manager of both Dreamworks Interactive and EA Japan, overseeing the development of EA's game-changing franchise, Medal of Honor.

Mr. Haller, Digital Angel's newly appointed Chief Executive Officer, commented, "We are at a unique crossroads in the development of mobile apps for tablets and smartphones.  Quality, creativity and innovation will drive the next wave of expansion.  I believe that my long-time relationships with some of the top independent development studios in the world will allow Digital Angel to enter this segment of the market at just the right moment with ground-breaking, mass-market games and activities that will allow Digital Angel to quickly establish its place as a top tier publisher."

Mr. Haller added, "When I look at the mobile apps and game market, I see a lot of similarities to the late 1990's, when our industry made the jump from 2-D technology to 3-D.  Having been at the forefront of that seismic shift in consumer expectations, I see similar opportunities that exist today for a nimble and aggressive new publisher to enter the arena and quickly establish itself.  A public company such as Digital Angel is in a great position to make this happen and I am excited to have the opportunity to lead the company in this new direction."

Conference Call

Digital Angel will hold an investor call today, Monday August 27, 2012 at 9:00 a.m. ET to discuss these developments.

Interested participants should call (877) 375-4189 within the United States and Canada, or (973) 935-2046 internationally. Please use access code 23218481. Alternatively, a simultaneous webcast of the live conference call can be accessed through Digital Angel's website at www.digitalangel.com.

For persons unable to participate in either the conference call or the webcast, a replay will be available from August 27, 2012 at approximately 11:30 a.m. ET to September 10, 2012 at 11:59 p.m. ET. For the telephonic replay, dial (855) 859-2056 (USA/Canada) or (404) 537-3406 (international), using access code 23218481. The webcast replay can also be accessed through Digital Angel's website at www.digitalangel.com

About Digital Angel

Digital Angel (OTCBB: DIGA) is a developer and publisher of consumer applications and mobile games designed for tablets, smartphones and other mobile devices, as well as a distributor of two-way communications equipment in the U.K.  For further information please visit www.digitalangel.com.

Safe Harbor Statement

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 management's and the Board of Directors' decisions regarding new strategic opportunities being pursued by the Company, the likelihood that pursuit of such opportunities will maximize shareholder value, the Company's ability to successfully enter this market segment, and the overall impact of these and other recent developments on the Company's financial results. 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 29, 2012 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:

KCSA Strategic Communications

Rob Fink / Josh Dver

212.896.1206 / 212.897.1239

digitalangel@kcsa.com

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