Applied Cellular Technology Announces Merger of Tigertel and Contour Telecom.

PALM BEACH, Fla.--(BUSINESS WIRE)--May 10, 1999--

Applied Cellular Will Own 80% of Combined Company

Applied Cellular Technology, Inc. (NASDAQ/NMS:ACTC) today announced that it has reached an agreement to merge one of its subsidiaries, TigerTel Services, with Contour Telecom Management, a Canadian-based communications network management firm that trades on the Canadian Dealing Network under the symbol "CTUR".

In this transaction Applied Cellular will receive shares of Contour Telecom and, as a result, will own approximately 80% of the combined entity. On a pro forma basis without accounting for synergies, projected annual revenues for the combined entity for 1999 are expected to be approximately U.S.$62.0 million and net income is expected to be approximately U.S.$4.1 million. This merger, which is expected to close by June 30, 1999, is subject to the approval of Contour Telecom's shareholders.

Applied Cellular's Chairman and CEO, Richard J. Sullivan, commented, "The merger of TigerTel and Contour Telecom represents an excellent opportunity for two Canadian communication companies to combine their resources and emerge as one significantly stronger entity. Both companies will benefit as Contour Telecom utilizes TigerTel's extensive call center operations and flat rate telecommunications network to expand and enhance its range of services to its existing corporate client base."

Brian MacIntosh, President and Chief Executive Officer of Contour Telecom, stated, "We are excited to join forces with TigerTel and become part of the Applied Cellular team. The telecommunications industry in Canada has exploded since its deregulation and now generates over $24cd billion annually. Contour Telecom has been at the forefront of this growing market and is the country's premier provider of outsourced communication network management services. This merger with TigerTel and Applied Cellular will broaden our customer base and serve as an important entry into the lucrative U.S. market."

Contour Telecom manages organizations' telecommunications facilities and costs to client-specified service levels. The company uses a unique, structured approach to telecom management, emphasizing superior service and lower costs. Contour Telecom markets its services directly to major corporations across Canada.

Applied Cellular Technology is a full service communications company that provides integrated products and services to a wide variety of businesses throughout North America. The Company is comprised of five business divisions which work together to meet the growing communication needs of its clients. For more information visit the Company's web site at http://www.appliedcell.com.

PENDING SHAREHOLDER APPROVAL THE COMPANY INTENDS TO CHANGE ITS NAME TO APPLIED DIGITAL SOLUTIONS EFFECTIVE ON OR ABOUT JULY 1, 1999. THE COMPANY'S NEW TRADING SYMBOL WILL BE ADSX.

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.