Applied Digital Solutions' Government Telecommunications -GTI- Unit Wins $6 Million Order from the United States Department of Agriculture.

Business Editors/High-Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--Sept. 4, 2003

In Second Major USDA Award This Year, GTI Will Upgrade

Telecommunications Technology at the Agency's National Finance Center

Applied Digital Solutions, Inc. (Nasdaq:ADSX), an advanced technology development company, today announced that its wholly owned subsidiary, Government Telecommunications, Inc. (GTI), has received an order valued at more than $6 million from the United States Department of Agriculture (USDA) to deploy leading-edge telecommunications technology at the National Finance Center in New Orleans, Louisiana.

The GTI team will install networked Nortel Meridian 1 Private Branch Exchanges to support more than 4,500 USDA employees in three buildings. The team will also install a Nortel Symposium Call Center and engineer, design, install and test circuits that seamlessly integrate the new facilities with CENTREX service currently in use at the site. GTI's work on this project is scheduled to be completed in early 2004.

This is the fourth telecommunications award announced by GTI this year and the second major award from USDA. In May, GTI announced a multi-year award from the USDA to provide maintenance services at 4,500 locations. This award was followed in July by GTI's announcement of a contract with the U.S. Postal Service to upgrade data networks at mail processing facilities. In March, GTI was awarded an unrelated multi-year contract by the General Services Administration's Federal Technology Service (FTS) as part of the agency's CONNECTIONS program.

About Government Telecommunications (GTI)

GTI, a subsidiary of Computer Equity, Inc. (Compec), is headquartered in Chantilly, Va. With an annual 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, U.S. Postal Service and the Social Security Administration.

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 majority owner of Digital Angel Corporation (AMEX:DOC). For more information, visit the company's Web site 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.