ATEC Group Announces Return of Surinder Rametra as Chairman and Chief Executive Officer; Three New Board Members Also Appointed.

Business Editors

COMMACK, N.Y.--(BUSINESS WIRE)--April 25, 2001

ATEC Group, Inc. (AMEX: TEC), a leading system integrator and provider of a full line of information technology products and services, announced today that Surinder Rametra has returned as chairman and CEO, positions he formerly held with the company. Ashok "Tony" Rametra, who succeeded Surinder Rametra as CEO, will continue to serve as president, COO and a director of the company.

Surinder Rametra resigned from ATEC in October 2000 after agreeing to sell his stake in ATEC to Applied Digital Solutions, Inc. (NASDAQ: ADSX), under a stock purchase agreement that has since been terminated.

Commented Tony Rametra, "Surinder and I have worked side by side to guide ATEC Group's growth since 1994, and together we have been able to raise the company's visibility in the marketplace and achieve many quarters, and years, of profitability. Most recently, the senior management, board of directors and I decided that it was in the best interests of the company and our shareholders to ask Surinder to return to strengthen our core business, define future goals and assist in achieving the company's long-term growth."

Said Surinder Rametra, "I am pleased to once again be part of the ATEC management team. With our strong financial position and team of dedicated and talented professionals, we can achieve our targeted internal growth. In addition, while our core business will remain system integration and PC manufacturing, over the next several months we intend to enter the IT-enabled services market, particularly consulting, off-shore software development, help desk and telemarketing services. This is a highly profitable market and complements well our core businesses and existing client base. Our entire company will be committed to allocating the resources necessary to make this vision a reality."

He continued, "Although the recent economic slowdown has affected the company, and will likely affect our financial results for the fiscal third and fourth quarters of 2001, we are in an excellent position from both a financial and market perspective to enjoy several years of sustained growth and profitability. I look forward to serving our shareholders and to helping ATEC realize its potential as one of the leading technology companies in the U.S. and overseas."

The company also announced the appointment of three new board members to replace the directors who resigned in early March following the termination of the company's relationship with Applied Digital Solutions. The new board members are David Reback, a former ATEC director; Stewart H. Benjamin, a sole-practitioner CPA; and Praveen Bhutani, founder and CEO of Ultra Spec Cables and The Options Group. About ATEC Group

Based in Commack, New York, ATEC Group, Inc., is a leading system integrator and provider of a full line of information technology solutions and services. Its Technology Integration Services (TIS) division is a one-stop provider for the computer needs of enterprise customers including businesses, government agencies and educational institutions. TIS offers supply chain management, LAN/WAN, system integration, staffing, Internet and e-commerce solutions. ATEC Branded Solutions(TM) provides enterprise architecture and blueprints for successful solutions. Its Global Distribution (GD) division is a B2B division that offers a unique combination of price and delivery to other resellers, retailers and enterprise customers. The company is positioned for growth through Nexar Technologies, its PC manufacturing division, and growth within Internet, e-commerce and staffing solutions.

For more information on ATEC Group, please visit the company's web site at www.atecgroup.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements that are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including, but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission.