Applied Digital Solutions' Government Telecommunications - GTI - Unit Wins Multi-Year Contract from the Federal Government's General Services Administration.

Business Editors/High-Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--March 28, 2003

Award to GTI is part of GSA's $35 billion CONNECTIONS program in

which 17 suppliers will provide telecommunications services and

equipment to federal agencies

Applied Digital Solutions, Inc. (Nasdaq:ADSX), an advanced technology development company, today announced that its business unit, Government Telecommunications (GTI) - a subsidiary of Computer Equity, Inc. - has been awarded a multi-year contract by the General Services Administration's Federal Technology Service (FTS) as part of the agency's $35 billion CONNECTIONS program.

The CONNECTIONS program replaces the expiring FTS Wire and Cable Services contract. In 2002, GTI booked $38 million in orders and generated over $31 million in revenue from the Wire and Cable Services contract, which was first awarded in 1997.

In addition to GTI, 16 other suppliers will participate in the CONNECTIONS program to provide telecommunications equipment and services to agencies of the federal government. The contracts are eight-year multiple award, indefinite delivery, indefinite-quantity (IDIQ) contracts with a base period of three years and five successive one-year options.

Tom Cuneo, Vice President for Sales and Marketing, led the GTI CONNECTIONS Capture Team. The GTI Program Manager is Bill Leonard, Vice President for Strategic Programs.

"This contract award is tremendous news, for our customers, for GTI and for Applied Digital Solutions," said Frank E. Lalley, President and CEO of GTI. "It enables continuity of service for our long-term customers, and provides an opportunity for GTI to develop relationships with new agencies."

Mr. Lalley joined Applied Digital's Computer Equity subsidiary in January 2002 after a distinguished, 35-year career in the federal government. Most recently, Mr. Lalley served as Assistant Commissioner for Service Delivery in the General Services Administration's Federal Technology Service. Last May, Mr. Lalley acquired the additional title of Vice President for Government Solutions, a position aimed at meeting government needs for the Company's advanced technology products, such as VeriChip(TM), Thermo Life(TM) and Digital Angel(TM).

About the General Services Administration (GSA)

GSA is a centralized federal procurement and property management agency created by Congress to improve government efficiency and help federal agencies better serve the public. It acquires, on behalf of federal agencies, office space, equipment, telecommunications, information technology, supplies, and services. GSA, comprised of 14,000 associates, provides services and solutions for the office operations of over 1 million federal workers located in 8,300 government-owned and leased buildings in 1,600 U.S. communities.

About Government Telecommunications (GTI)

GTI, a subsidiary of Computer Equity, Inc. (Compec), is headquartered in Chantilly, Virginia. With a revenue base that exceeds $30 million, GTI specializes in designing, deploying and maintaining voice, data and video telecommunications networks for agencies of the federal government. Key customers include the Departments of Defense, Justice and Agriculture, and the Social Security Administration.

About VeriChip(TM)

VeriChip is a miniaturized radio frequency identification device (RFID) 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. VeriChip Corporation is a wholly owned subsidiary of Applied Digital Solutions.

About Digital Angel Corporation (AMEX:DOC)

On March 27, 2002, Digital Angel Corporation completed a merger with Medical Advisory Systems, Inc., which for two decades has operated a 24/7, physician-staffed response center in Owings, Maryland. Prior to the merger, Digital Angel Corporation was a 93% owned subsidiary of Applied Digital Solutions, Inc. (Nasdaq: ADSX), which now is a beneficial owner of the company. Digital Angel(TM) technology represents the first-ever combination of advanced sensors and Web-enabled wireless telecommunications linked to Global Positioning Systems (GPS). By utilizing advanced sensor capabilities, Digital Angel is able to monitor key functions - such as ambient temperature and physical movement - and transmit that data, along with accurate emergency location information, to a ground station or monitoring facility. The company also invented, manufactures and markets implantable identification microchips the size of a grain of rice for use in humans, companion pets, fish, and livestock. Digital Angel Corp. owns the patents for its inventions in all applications of the implantable microchip technology for humans and animals. For more information about Digital Angel Corp., visit www.DigitalAngelCorp.com.

About Thermo Life(TM)

Thermo Life is a miniaturized, thermoelectric generator powered by body heat. On July 9, 2002, the Company announced that it had achieved an important breakthrough: 3.0-volts of electrical power successfully generated by Thermo Life in laboratory tests. The Company believes Thermo Life technology has a wide variety of potential uses, including the powering of various electronic devices, wristwatches, medical devices, smoke detectors and other heat-related sensors. If Thermo Life performs as expected in commercial applications, this technology could effectively eliminate the need to periodically replace the power source of these devices. Thermo Life technology can also provide an independent, heat-generated power source for security related sensors. Thermo Life Energy Corporation is a wholly owned subsidiary of Applied Digital Solutions.

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). For more information, visit the company's website at http://www.adsx.com.

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. 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. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.