Applied Digital Solutions And Digital Angel™

Applied Digital Solutions

Digital Angel Press Release 12/15/99

The following information concerning another new microchip
technology referred to as the so-called 'Digital Angel™',
was taken from the Applied Digital Solutions web site at
http://www.adsx.com

Applied Digital Solutions acquires rights to world's first
digital device -- implantable in humans - with applications
in e-business to business security, health care and criminal
justice

Inserted just under the skin, with maintenance-free
regenerating power supply, miniature "Digital Angel™" has
multi-billion dollar market potential

Special Report

PALM BEACH, Fla.--(Business Wire)--Dec. 15, 1999--Inserted
just under the skin, with maintenance-free regenerating
power supply, miniature 'Digital Angel¨' has multi-billion
dollar market potential

Applied Digital Solutions, Inc. (NASDAQ:ADSX - news) today
announced that it has acquired the patent rights to a
miniature digital transceiver -- which it has named "Digital
Angel¨" -- that can be used for a variety of purposes, such
as providing a tamper-proof means of identification for
enhanced e-business security, locating lost or missing
individuals, tracking the location of valuable property and
monitoring the medical conditions of at-risk patients.

In the agreement signed last week, ADS acquired the right to
develop this unique product itself for all of its
applications or to sublicense the development of specific
applications to other entities. A special technology group
has been formed within ADS to supervise the development of
the device.

The implantable transceiver sends and receives data and can
be continuously tracked by GPS (Global Positioning
Satellite) technology. The transceiver's power supply and
actuation system are unlike anything ever created. When
implanted within a body, the device is powered
electromechanically through the movement of muscles, and it
can be activated either by the 'wearer' or by the monitoring
facility. A novel sensation feedback feature will even allow
the wearer to control the device to some degree. The
"smart" device is also small enough to be hidden
inconspicuously on or within valuable personal belongings
and priceless works of art.

Commenting on Digital Angel's¨ many potential applications,
Richard J. Sullivan, Chairman and CEO of Applied Digital
Solutions, Inc. (ADS), said: "We believe its potential for
improving individual and e-business security and enhancing
the quality of life for millions of people is virtually
limitless. Although we're in the early developmental phase,
we expect to come forward with applications in many
different areas, from medical monitoring to law enforcement.
However, in keeping with our core strengths in the
e-business to business arena, we plan to focus our initial
development efforts on the growing field of e-commerce
security and user ID verification."

Sullivan added that the multi-purpose technology would
enable ADS to tap into a vast global market, through
licensing and other commercial arrangements, with an
estimated total value in excess of $100 billion. "The
e-business to business security market alone could reach as
high as $10 to $12 billion in the near future," Sullivan
added.

ADS is actively seeking joint venture partners to help
develop and market the unique technology. The company
expects to create a working prototype by the end of next
year.

Applied Digital Solutions, Inc. is an e-business to business
solutions provider offering Internet, telecom, LAN and
software services to a wide variety of businesses throughout
North America. For more information, visit the Company's web
site at: http://www.adsx.com

Statements about the Company's future expectations,
including future revenues and earnings, and all other
statements in this press release other than historical facts
are 'forward-looking statements' within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of
the Securities Exchange Act of 1934, and as that term is
defined in the Private Litigation Reform Act of 1995. The
Company intends that such forward-looking statements involve
risks and uncertainties and are subject to change at any
time, and the Company's actual results could differ
materially from expected results. The Company undertakes no
obligation to update forward-looking statements to reflect
subsequently occurring events or circumstances.

BACKGROUND AND TECHNICAL ABSTRACT

Digital Angel¨

E-Business Security, Emergency Location and Medical
Monitoring

Background

On May 13, 1997, United States Patent Number 5,629,678 was
granted for a "personal tracking and recovery system,"
consisting of a miniature digital transceiver -- implantable
in humans -- with a built-in, electromechanical power supply
and actuation system. These features enable the device to
remain implanted and functional for years without
maintenance. This transceiver sends and receives data and
can be continuously tracked by Global Positioning Satellite
(GPS) technology.

On December 10, 1999, Applied Digital Solutions, Inc. (ADS)
acquired the patent rights to this technology, which the
company refers to as 'Digital Angel¨'. The agreement gives
ADS the right to develop this unique product for all of its
applications or to sublicense the development of specific
applications to other entities. ADS is actively seeking
joint venture partners to develop and market this
technology. We expect to produce a prototype of the device
by the end of 2000. We believe the potential global market
for this device -- in all of its applications -- could
exceed $100 billion.

Limitations of Competing Technologies

While a number of other tracking and monitoring technologies
have been patented and marketed in the past, they are all
unsuitable for the widespread tracking, recovery and
identification of people due to a variety of limitations,
including unwieldy size, maintenance requirements,
insufficient or inconvenient power-supply and activation
difficulties. For the first time in the history of location
and monitoring technology, Digital Angel¨ overcomes these
limitations.

Basic Features and Potential Uses of Digital Angel¨

The Digital Angel¨ transceiver can be implanted just under
the skin or hidden inconspicuously on or within valuable
personal belongings and priceless works of art. When
implanted within the human body, the transceiver is powered
electromechanically through the movement of muscles. It can
be activated either by the "wearer" or by a remote
monitoring facility. The device also can monitor certain
biological functions of the human body - such as heart rate
- and send a distress signal to a monitoring facility when
it detects a medical emergency.

Although still in the early developmental stage, we believe
Digital Angel¨ could have an array of beneficial potential
applications: provide a tamper-proof means of locating and
identifying individuals for e-business and e-commerce
security; locate individuals, including children, who are
lost or who have been abducted; monitor the medical
conditions of at-risk patients; track and locate military,
diplomatic and other essential government personnel;
determine the location or the authenticity of valuable
property; track the whereabouts of wilderness sports
enthusiasts (mountain climbers, hikers, skiers, etc.).

About Applied Digital Solutions, Inc.

Applied Digital Solutions, Inc. is an e-business to business
solutions provider offering Internet, telecom, LAN and
software services to a wide variety of businesses throughout
North America. ADS is led by Richard J. Sullivan, who was
elected Chairman of the Board of Directors and named Chief
Executive Officer in May 1993. Since assuming this role, he
has spearheaded the acquisition of some 40 companies over
the past five years. During his tenure as Chairman and CEO,
ADS has experienced record revenue and profit growth.

For more information, visit the Company's web site at
www.adsx.com

Contact:

Applied Digital Solutions, Palm Beach
Lynn Anderson, 561/366-4800
or
Crawford Public Relations
Jim Crawford, 703/318-5460
or
Ovations International, Inc.
Matthew Cossolotto, 914/245-9721