ATEC Group Chairman and CEO Announces Retirement; Applied Digital Solutions Agrees to Acquire Interest in Company; New Board Members Appointed.

Business & High Tech Editors

COMMACK, N.Y.--(BUSINESS WIRE)--Nov. 3, 2000

ATEC Group, Inc. (AMEX: TEC), a leading system integrator and provider of a full line of information technology products and services, announced today that Chairman and CEO Surinder Rametra has retired and entered into an agreement to sell his stake in the company to Applied Digital Solutions (NASDAQ: ADSX). Ashok "Tony" Rametra, 48, the company's president since January 1999 and a board member, will assume the additional role of CEO, effective immediately.

"After careful consideration, I have decided to retire from my responsibilities at ATEC to spend more time with my family and on other pursuits," said Surinder Rametra. "I have enjoyed the opportunity to shape the direction of ATEC during my six years as CEO and chairman, and am confident that my brother Tony will successfully guide the company through its next phase of growth. I thank the ATEC shareholders, employees and customers for their many years of loyalty and support."

Said Tony Rametra, "I welcome the opportunity to assume the leadership of ATEC Group following Surinder's productive tenure. Over the past year, we have made significant changes at the company to help further refine our business strategy, so that we are now fully committed to PC manufacturing, software development and e-commerce as our primary strengths. I intend to continue this emphasis with an aim towards improving our top-line performance and profitability in 2001."

"ATEC never really fell off our radar screen," commented Richard J. Sullivan, chairman and CEO of Applied Digital. "At the time, the market was in the midst of the now infamous `March Effect'; it just was not an appropriate time for action. We continued to recognize, though, the ability to strengthen both ATEC and Intellesale.com by leveraging off the particular strengths of each. ATEC's excellent distribution channels, including there recently announced strategic partnership with Computer Associates International, Inc. (NYSE: CA), combined with Intellesale's ability to locate and products effectively, make this a natural relationship. The management teams of each also provide very complementary styles, offering strong leadership and operational expertise. In the future, we see this growing into an even more strategic relationship with significant potential benefits for all of our shareholders."

Two outside members of the board of directors -- George Eagan and David Reback-- have also resigned. Replacing them are James J. Charles, the company's CFO, and Richard J. Sullivan. Two additional independent directors were also appointed.

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 products and services. As a one-stop company for the computer needs of businesses, government agencies and educational institutions, ATEC Group offers computer hardware and software, system integration networking, graphic arts, Internet and Intranet. The company is positioned for growth through its capabilities as a PC manufacturer of Nexar technology, in software development and e-commerce.

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.