Applied Digital Solutions And Digital Angel™

Applied Digital Solutions And Digital Angel™ - 8

Digital Angel Press Release 10/7/02

VeriChip Corporation Will Benefit From New United States
Patent --#6,400,338-- Awarded to Digital Angel Corporation,
Manufacturer of VeriChip

Yahoo.com Financial News

Monday October 7, 2002

PALM BEACH, Fla.--(BUSINESS WIRE)--Oct. 7, 2002--Applied
Digital Solutions, Inc. (Nasdaq: ADSX - News):

The recently announced patent for a "unitary core,"
subdermal microchip is expected to create additional growth
opportunities for VeriChip(TM) across an array of advanced
applications, including security, financial anti-fraud
protection and safety-related identification

Applied Digital Solutions, Inc. (Nasdaq: ADSX - News) an
advanced technology development company, announced today
that its wholly owned subsidiary, VeriChip Corporation,
expects to benefit directly from the United States patent
(#6,400,338) granted recently to VeriChip's manufacturer,
Digital Angel Corporation.

Worldwide patents are pending for this breakthrough,
"unitary core" implantable microchip technology.

The new microchip patent involves a revolutionary and
proprietary new "unitary core" design. This proprietary
"unitary core" frees up more space within the surrounding
tube to accommodate a bigger, more powerful antenna, which
will substantially increase the range of VeriChip's radio
signal. The new design improvement also yields a doubling in
VeriChip's magnetic field, which helps to open up enhanced
applications - such as broader-range, doorway/walk-through
scanners - required for a variety of security-related and
building-access applications.

Cost efficiencies and performance enhancements inherent in
the next-generation VeriChip are also expected to speed the
introduction of a wide range of advanced VeriChip
applications in security and financial anti-fraud (including
use at ATM machines).

Commenting on the marketplace implications of the new
patent, Scott R. Silverman, President of Applied Digital
Solutions, stated: "By reducing the costs of scanners and
enhancing their accuracy, range and speed, we believe this
`unitary core' breakthrough will facilitate the adoption of
VeriChip technology across the board, with a special
emphasis on security applications, both in domestic and
international markets."

As previously announced by Digital Angel Corporation, the
new patent builds on Digital Angel Corporation's underlying
"keystone" patent (#5,211,129) for its implantable RFID
microchip. The technological advance will become the
enhanced-performance platform for the Company's entire line
of implantable microchips, including VeriChip. The new
design - which has the added benefit of making the microchip
more susceptible to an automated production process - is the
result of a three-year research and development effort. The
new, automated manufacturing process will enable the Company
to cost-effectively increase production capacity to meet
ever-growing demand, especially with regard to emerging
marketplace applications.

Next-generation, patented microchips will be included in
production runs beginning in the fourth quarter of 2002.
VeriChip Corporation has an exclusive product and technology
license to market all human applications of Digital Angel
Corporation's proprietary, implantable microchips, scanners
and delivery system. "Getting chipped" is a simple,
outpatient procedure that lasts just a few minutes and
involves only local anesthetic and insertion of the chip.
Announcements about the timing of future "chipping"
procedures in the United States will be made at the
appropriate time pending further regulatory clarification.

About VeriChip

VeriChip, first announced on December 19, 2001, is a
miniaturized radio frequency identification device (RFID)
that can be used in a variety of security, financial,
emergency identification and healthcare applications. About
the size of a grain of rice, each VeriChip product contains
a unique verification number and will be available in
several formats, some of which will be insertable under the
skin. The verification number is captured by briefly passing
a proprietary scanner over the VeriChip. A small amount of
radio frequency energy passes from the scanner energizing
the dormant VeriChip, which then emits a radio frequency
signal transmitting the verification number. "Getting
chipped" is a simple, outpatient procedure that lasts just a
few minutes and involves only local anesthetic and insertion
of the chip. VeriChip Corporation and its parent company,
Applied Digital Solutions, are working with federal
regulators to ensure full compliance with applicable
regulations. VeriChip Corporation is a wholly owned
subsidiary of Applied Digital Solutions.

About Digital Angel Corporation

On March 27, 2002 Digital Angel Corporation completed a
merger with Medical Advisory Systems, Inc., which for two
decades has operated a 24/7, physician-staffed call center
in Owings, Maryland. Prior to the merger, Digital Angel
Corporation was a 93% owned subsidiary of Applied Digital
Solutions, Inc. (Nasdaq: ADSX - News), which now is the
beneficial owner of a majority position in the Company.
Digital Angel(TM) technology and patents represent the
first-ever combination of advanced sensors and Web-enabled
wireless telecommunications linked to Global Positioning
Systems (GPS). By utilizing advanced sensor capabilities,
Digital Angel will be able to monitor key functions - such
as ambient temperature and physical movement - and transmit
that data, along with accurate emergency location
information, to a ground station or monitoring facility. The
Company also invented, manufactures and markets implantable
identification microchips the size of a grain of rice for
use in companion pets, fish, and livestock. Digital Angel
Corporation owns patents for its inventions in applications
of the implantable microchip technology for animals and
humans. For more information about Digital Angel
Corporation, visit www.digitalangel.net.

About Applied Digital Solutions, Inc.

Applied Digital Solutions is an advanced technology
development company that focuses on a range of
life-enhancing, personal safeguard technologies, early
warning alert systems, miniaturized power sources and
security monitoring systems combined with the comprehensive
data management services required to support them. The
Company's Advanced Technology Group offers a complete CRM
solution to commercial and government customers, as well as
a full array of security-related data collection,
value-added data intelligence and complex data delivery
systems for a wide variety of end users including commercial
operations, government agencies and consumers. Applied
Digital Solutions is the beneficial owner of a majority
position in Digital Angel Corporation (AMEX: DOC - News).
For more information, visit the Company's website 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.