Channeling Stocks

[sludgehound]

ADSX 'ol POS still in $2.31 News

Don't ask me why?@#!

DELRAY BEACH, Fla., Jul 14, 2004 (BUSINESS WIRE) -- Rafael Macedo de la Concha
and Staff Receive VeriChip for Security Application

VeriChip(TM) Corporation, a subsidiary of Applied Digital Solutions, Inc.
(NASDAQ: ADSX) announced today that the Attorney General of Mexico, Rafael
Macedo de la Concha and some of his staff have received a VeriChip for security
applications. Although this was previously confidential, the Attorney General
announced this security application at the recent opening of Mexico's National
Information Center. The "chipping" of the officials was facilitated by Solusat,
the Company's exclusive Mexican distributor.

About the size of a grain of rice, VeriChip(TM) is the world's first subdermal,
radio frequency identification microchip that can be used in a variety of
security, financial, emergency identification and other applications. Applied
Digital Solutions has received numerous inquiries on the subject from
shareholders, but had been unable to confirm the news previously due to
confidentiality provisions in its agreement.

About VeriChip(TM)

VeriChip is a miniaturized, radio frequency identification (RFID) device that
can be used in a variety of security, financial, emergency identification and
other 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. In October 2002, the US Food and Drug Administration (FDA)
ruled that VeriChip was not a regulated device with regard to its security,
financial, personal identification/safety applications but that VeriChip's
healthcare information applications are regulated by the FDA. VeriChip
Corporation is a wholly owned subsidiary of Applied Digital Solutions. For more
information about VeriChip, visit www.adsx.com.

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. Through its Advanced Technology Group, the company specializes in
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.