From: Glenn & Sherry Forrest
To: heb_roots_chr@hebroots.org
Subject: The Chips are Here

COMPANY TO SELL IMPLANTABLE CHIP

April 4, 2002

WASHINGTON - A company plans to begin selling a computer ID chip that
can be embedded beneath people's skin, now that the Food and Drug
Administration has said it will not regulate the implant as long as it
contains no medical data.

Applied Digital Solutions Inc. designed the VeriChip - about the size
of a grain of rice - to hold information that could be read with
special electronic scanners. The company has touted the chip as a
potential way to hold a person's medical records or security codes.

Applied Digital had held off sales pending discussions with the FDA of
whether an implanted chip would be considered a medical device. If the
chip solely provides identification, it needs no FDA clearance, the
agency confirmed Thursday - advice officials have long given others
developing ID for tracking children, prisoners or workers with
top-security clearances.

But, "if they put medical records in, we would be concerned about the
use," said the FDA's medical device chief, Dr. David Feigal, who made
clear that the agency could step in at that point.

If someone is unconscious in an emergency room and implanted medical
records are outdated, that could be more dangerous than if doctors had
no information, he said. Feigal urged companies considering such
health-related implants to consult with the FDA.

For now, the VeriChip will bear only an identification number, said
David Hughes of Technology Sourcing International, a consulting firm
helping Applied Digital in its discussions with the FDA. But that ID
code could be cross-referenced with a database to detail any kind of
information.

The company said production would begin immediately.

VeriChip emits a radio signal and has been derided by some for its
"Big Brother" implications. Applied Digital has said it could prove
invaluable in emergency situations when someone is either unconscious
or cannot otherwise give information.

VeriChip is expected to sell for about $200. A scanner used to read
information contained in the chip would cost between $1,000 and
$3,000. A doctor would insert the chip with a large needle-like
device.

Shares of Applied Digital rose 4 cents, or 8 percent, to 52 cents in
late trading on the Nasdaq Stock Market.

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