Applied Cellular Technology Announces Results for the First Quarter End March 31, 1999.

PALM BEACH, Fla.--(BUSINESS WIRE)--May 11, 1999--

Applied Cellular Technology, Inc. (NASDAQ/NMS:ACTC) today reported results for the first quarter ended March 31, 1999.

Revenue for the three-month period increased 33% to $51.6 million compared with revenue of $38.8 million for the first three months of 1998. Net income for the first quarter of 1999 excluding the previously announced restructuring charge of $2.6 million, was $163,000, or $0.00 per share, versus net income of $597,000 or $0.02 per share for the same period a year ago. After restructuring charges, the Company reported a net loss for the first quarter of 1999 of $1.6 million, or ($0.04) per share.

Applied Cellular's Chairman and CEO, Richard J. Sullivan, commented, "We are pleased with our results for the first quarter. Our gross margin increased from 27% to 36% and EBITDA (earnings before interest, taxes, depreciation and amortization and minority interest) held steady at 5% of total revenue. We are also pleased with the gross margin improvement in our five core divisions, which grew from 30% to 39% of revenue. We are working hard to complete the integration of all of our companies and to identify areas where additional cost savings and operating efficiencies can be achieved."

The Company noted that the number fully diluted weighted average shares outstanding increased from approximately 25 million a year ago to approximately 42 million for the first three months of 1999. The Company also reported that in the first quarter it did not repurchase any of its common stock under the authorized share repurchase program.

The Company also announced that it is still working towards filing a registration statement on Form S-1 in June with the Securities and Exchange Commission (SEC) relating to the offering of shares of Intellesale.com to the public. Intellisale.com, Inc., a division of Applied Cellular, is an internet remarketer of off-lease used and refurbished brand name computer equipment and products.

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 primary 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. -0-

            Applied Cellular Technology, Inc. and Subsidiaries
                     Selected Operating Information
                  (In Thousands, Except Per Share Data)


                                                    Three Months Ended
                                                         March 31,
                                                     1999        1998
                                                     ----------------
                                                       (Unaudited)
  Net Operating Revenue                           $51,573     $38,784
  Gross Margin                                     18,397      10,486
  Selling, general and administrative expense      17,512       9,131
  Restructuring and unusual charges                 2,550          --
  Operating Income (Loss)/1                        (1,665)      1,355
  Income (Loss) before Income Taxes, Minority
     Interest and Preferred Stock Dividends       (1,976)       1,227
  Net Income (Loss) Available to
   Common Stockholders                            (1,645)         597

  Net Income (Loss) per Common Share:
  Basic                                           $(0.04)       $0.03
  Diluted                                         $(0.04)       $0.02

  Weighted Average Number of Common Shares
     Outstanding:
  Basic                                            41,236      23,711
  Diluted                                          41,909      24,956


  Selected Balance Sheet Data:                     March 31,   Dec. 31,
                                                     1999        1998
                                                    ------------------
                                                 (Unaudited)

  Cash and Cash Equivalents                        $  698    $  4,555
  Total Current Assets                             64,209      65,244
  Total Assets                                    129,668     124,116
  Total Current Liabilities                        53,376      50,757
  Stockholders' Equity                             70,007      67,560

     /1: Operating loss for the three months ended March 31, 1999
includes a restructuring charge of approximately $2.6 million.