Issued Real World News

[Georgia Bard]

Nasdaq:ADSX - Mercedes Walton, President and Chief Operating Officer, Offers a Candid Perspective On the State of ADSX
Applied Digital Solutions ``will re-deploy assets and intensify plans to establish our Advanced Wireless Unit as the foundation for a sound and profitable future.''

PALM BEACH, Fla.--(BUSINESS WIRE)--July 12, 2001-- ``...the pathway for ADSX is precisely focused on an

expansive landscape of abundant opportunity.``

Mercedes Walton, president and chief operating officer of Applied Digital Solutions Inc. (Nasdaq:ADSX - news), a leader in information technology and solutions, today announced, ``In view of our undervalued market position, I am compelled to provide our loyal shareholders who have patiently stood by us during a significant and often turbulent transformation, with my candid perspective on the state of our business.

``Since the beginning of 2001, ADSX has undergone radical changes to refocus the enterprise. Our strategic imperatives have been clear and consistent. We committed to deliver strong and sustainable earnings from the core business, while driving growth from the Advanced Wireless Unit.

``Despite formidable challenges that include dismal economic realities affecting the IT sector and efforts to fund new product development amidst softened capital markets, ADSX reaffirms its commitment to deliver the value our shareholders so well deserve.

``In the face of such forces beyond our control, we have accelerated the strategy to accomplish our goals. As a first step, we are renegotiating our credit agreement to restructure debt. These negotiations are driven by a shared belief and commitment to the market potential of Digital Angel. Secondly, we will re-deploy assets and intensify plans to establish our Advanced Wireless Unit as the foundation for a sound and profitable future.

``The magnitude of our strategic direction is underscored by the substantial time and effort we have invested in repositioning Applied Digital Solutions. Year-to-date performance for the Advanced Wireless Unit remains strong. As we conclude our self-imposed quiet period and begin to announce strategic partnerships for Digital Angel, it will become apparent that the pathway for ADSX is precisely focused on an expansive landscape of abundant opportunity.''

About Digital Angel

Digital Angel(TM) represents the first-ever combination of advanced biosensor technology and Web-enabled wireless telecommunications linked to Global Positioning Systems (GPS). By utilizing advanced biosensor capabilities, Digital Angel will be able to monitor key body functions -- such as temperature and pulse -- and transmit that data, along with accurate location information, to a ground station or monitoring facility. Digital Angel will be able to tap into an addressable North American marketplace estimated to exceed $70 billion. Applied Digital Solutions is exploring a wide range of potential applications for Digital Angel, including: monitoring the location and medical condition of at-risk patients; locating lost or missing individuals; locating missing or stolen household pets; managing livestock and other farm-related animals; pinpointing the location of valuable stolen property; managing the commodity supply chain; preventing the unauthorized use of firearms; and providing a tamper-proof means of identification for enhanced e-commerce security. For more information or to reserve Digital Angel service, visit www.digitalangel.net

About Applied Digital Solutions Inc.

Applied Digital Solutions is an information technology and solutions company operating on the I3 Services Platform -- Intelligent Integrated Information Services. Through our core business units (Applications, Services and Advanced Wireless), Applied Digital Solutions offers -- products and services for the collection, organization, analysis, warehousing and dissemination of information for a wide variety of end users including commercial operations, government agencies and consumers. 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.


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Contact:

ADS Investor Relations
Robert Jackson, 561/805-8042
Fax: [phone]
[e-mail]


:=) Gary Swancey