To: xcr600 who wrote (8171 ) 5/10/2002 5:10:08 PM From: ~digs Respond to of 48461 MedicAlert Foundation International's Tanya Glazebrook Issues Statement in Response to Applied Digital Solutions Inc.'s VeriChip 5/10/02 Live Chip Implantation Media Event Business Wire - May 10, 2002 12:33 ---VeriChip Human ID Leaves Critical Medical, Ethical and Infrastructure Questions Unanswered Today's live media event featuring the implantation of Applied Digital Solutions Inc.'s (Nasdaq: ADSX) VeriChip identification technology into eight people raises serious medical, ethical and infrastructure questions. While we applaud the focus on the need for medical identification services, we believe that the attention should move beyond the "whiz bang technology" to the closer scrutiny of the VeriChip viability and infrastructure. Perhaps the most integral question to be answered is "Why?" Medical identification is not a new concept. Effective, non-invasive medical identification services have existed for years, and are recognized and used by medical professionals and emergency responders worldwide. It simply is unnecessary to implant a device into a person's body when non-invasive, less expensive methods of protection exist. Viability of the VeriChip device necessitates an unrealistic, universal infrastructure for both the individual wearing the chip and medical professionals. Is Applied Digital Solutions going to provide every emergency department, every police station and every ambulance company with the proprietary scanner for a cost of $1,000 to $3,000 in order to read the implanted chip? Additionally, it is unclear how these professionals would know that a person has the chip if the person was unconscious or unable to provide the information. Like other companies in this industry already know, the universal scanner's availability and reliability still need work. The value of medical identification services is the easy and immediate access to reliable information by medical professionals, yet VeriChip's process requires a great deal of clarification. On April 4, 2002, the U.S. Food and Drug Administration (FDA) ruled that it did not consider the device to be a regulated medical device, enabling VeriChip to be marketed. However, under FDA regulations, the VeriChip device can only provide an identification number in the device. Because of this, the device requires that a medical professional access the identification number, then call a phone number, or have Internet access to a Web site, in order to obtain the person's medical information. Is this service 24-hours? Is the Web site secure? How does it work? Consider the person who has the implant. Will he or she have a false sense of security? Implanting similar devices in pets was a wonderful concept, but how many city pounds or animal shelters have the necessary scanner to help identify the lost pet? Finally, VeriChip raises serious privacy concerns. How is the company going to authenticate a person's access to medical information so that privacy and confidentiality are maintained? VeriChip's live media event today no doubt will generate a great deal of interest and controversy. We only hope that the buzz that this event creates will be balanced by thoughtful review and discussion of this device compared with the trusted services that already exist. CONTACT: MedicAlert Foundation International Jana Rhine-Patrick, 209/669-2476 www.medicalert.orgdatekrt.newsalert.com