Applied Digital Solutions' Subsidiary Awarded $12 Million Contract With D.C. Public Schools.

Business Editors/High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--July 13, 2001

Award value may approach $45,000,000; Program "demonstrates the unique ability...to coordinate the roll-out of a high visibility program utilizing the newest cabling and equipment technology"

Applied Digital Solutions, Inc. (NADSAQ: ADSX), a leader in information technology and solutions, today announced that its subsidiary, Government Telecommunications, Inc. ("GTI"), has been awarded a contract with the District of Columbia Public Schools valued at $12 million.

The potential value for this award may approach $45 million with an anticipated completion date of September 30, 2002. The order is for wiring and network infrastructure at all of the District's public schools.

Mercedes Walton, President and COO of Applied Digital Solutions, commented on the contract: "We are very pleased to have secured this high visibility government sector contract with the District of Columbia Public Schools. This award to GTI represents a significant achievement in its marketing plan to provide total network infrastructure service support to government customers nationwide. This particular program demonstrates the unique ability of GTI to coordinate the roll-out of a high visibility program utilizing the newest cabling and equipment technology including Category 5E copper cabling, high speed fiber optic interconnectivity and state-of-the-art network hardware from technology companies like CISCO."

About Applied Digital Solutions, Inc.

Applied Digital Solutions is an information technology and solutions company operating on the I3 Services Platform - Intelligent Integrated Information Services. Through our core business units (Applications, Services and Advanced Wireless), Applied Digital Solutions offers products and services for the collection, organization, analysis, warehousing and dissemination of information for a wide variety of end users including commercial operations, government agencies and consumers. 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. 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. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.