1 ISEE 2006 Instantel Dealer Meeting  History & Recent Purchase  Sales & Marketing  Technical Support & Service  Product Development

2 Instantel Company History  Acquired in 2005 by VeriChip, sub of Applied Digital (ADSX)  Little change in management during ownership changes Instantel Incorporated Dec. 22, 1982 Launched Blastmate II Launched Blastmate Launched WatchMate Wander Prevention System Launched Hugs Infant Protection System Acquired by Perceptis Launched Blastmate III Acquired by VeriChip

Instantel’s Ownership - Future  Applied Digital is NASDAQ small cap –$100 million revenues,$175 million market capitalization  Wholly-owned subsidiary VeriChip has Dual Focus: –Security & Industrial, Healthcare  Announced plans for IPO in mid 2006  Instantel run as independent Business Unit

4 Questions Regarding New Ownership & Continuing Business

5 Marketing & Sales  DealerZone On-line Tools  PromoZone Web Store  Marketing Development Fund  Forecasting

6 DealerZone On-line Tools  Secure, on-line, self-serve website –Marketing materials –Dealer materials  Receiving good traffic –125 dealer accounts –40% active in last month  Suggestions are welcome!

7 PromoZone Web Store  On-line ‘store’ for promotional materials –Launched mid-2005  MDF funds may be used –Offset 50% of cost  Canadian-made goods only at this stage  Suggestions welcome!

8 Marketing Development Fund  Cost-sharing program for dealer-initiated Instantel marketing activities –Booth space at Trade Shows, Advertising expenses, Promo Materials  2005 saw more Dealers taking advantage –2004: 3 transactions totaling $2,700 –2005: 17 transactions totaling $12,400  What would make you use the program?

Importance of Forecasting  Perpetual 12-month forecasting model  Dealer-driven 1-month bookings forecast  Accurate forecasts = Product availability Manage Opportunities Generate sales orders 12-month Forecast 1-month Bookings Forecast Plan production Build to stock Ship & invoice Dealer channel Customer Receipt

10 Questions Regarding Sales & Marketing Initiatives

11 Technical Support & Service  On-line RMA Tools  InfoChange Knowledgebase  Discussion on Training Needs

12 On-line RMA Tools  InfoChange RMA’s  The Process  Information Provided  Turn Around Time  Future - Enhancements

13 InfoChange Knowledgebase InfoChange FAQ’s  Appropriate Articles?  Is the Information Useful?  What is the Most Important Information?  What Should be Added?  Dealer Section – Coming

14 Discussion on Training Needs

15 Questions Regarding Technical Support & Service

16 Product Development  Turn-key Modems through Mobile Electron  Instantel Webware Web Reporting System

17 Mobile Electron Presentation

18 Webware Web Reporting  Several Dealers leveraging Web Reporting –Kalliotekniikka, Finland - BlastView –Explotech, Canada - BlastVibrations –Saros, Australia – BlastHub  Various requests for simple Instantel system  Objective: a simple, pay-per-use system that dealers can brand and market on their own  Benefit: develop the market for web reporting in North America - open doors to potential

19 Webware Web Reporting Internet CDMA1X Dealer PC - Blastware - Forwarding Agent Instantel Webware Server - Database - Web Pages (GUI) Clients

20 Webware Reporting Demo

21 Webware Web Reporting  Beta trials in mid-February, release in March  No entry fee or investment required for interested Instantel Dealers  Dealer site can be established in minutes over the phone with Instantel Technical Support Group  Dealer adds/removes Projects, Users and Monitors on their own  Fixed monthly fee per active monitoring point on the system – no monitors, no fee

22 Discussion on New Products and Evolving Market Requirements