VeriChip Sells Two Asset Tracking Systems for Hospitals

Value of contracts over $400K; systems for hospital asset and staff location


DELRAY BEACH, Fla. -- VeriChip Corporation, a provider of RFID systems for healthcare and patient-related needs, announced today that its subsidiary Xmark Corporation has sold two of its hospital asset/staff location and identification systems for a total value of more than $400,000. Over $250,000 of those orders has shipped during the Company's second quarter, and the remainder will ship during the Company's third quarter.

According to IDTechEx, a UK-based consulting firm, the market for RFID tags and systems in the healthcare industry in 2006 amounted to $90 million, representing approximately 3% of the total RFID market. IDTechEx has forecast that by 2016, the market for RFID tags and systems in the healthcare industry will grow to approximately $2.1 billion. IDTechEx expects that over the next ten years the second-largest RFID application, by value, within the healthcare industry will be real-time location systems for staff, patients, visitors and assets. To address this market opportunity, over the last several years the Company has invested a significant portion of its research and development budget on its hospital asset/staff location and identification system.

Scott R. Silverman, Chairman and Chief Executive Officer of VeriChip, commented, "As the largest provider of infant protection systems in North America with over 1,300 installations, we intend to leverage our existing hospital relationships to grow this newer segment of our business, our asset tracking solution for hospitals. I am pleased to see this area of our business continue to expand and look forward to announcing additional system sales in the future."