Issued Real World News

[Georgia Bard]

(Nasdaq:ADSX), Mercedes Walton, President and Chief Operating Officer, Offers a Candid
Perspective On the State of ADSX


Business Editors & High-Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--July 12, 2001--

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."

"...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. 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.

--30--HM/ho*

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



:=) Gary Swancey