Applied Digital Solutions Acquires Timely Technology Corporation, a Fast-Growing California-Based e-Commerce Solutions Provider.

Business Editors, High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--Aug. 4, 2000

Acquisition strengthens Applied Digital's ability to offer

web-based financial and education-related ASP services

Applied Digital Solutions, Inc. (NASDAQ:ADSX), a leading, single-source provider of e-business solutions, today announced that it has acquired Timely Technology Corporation (TTC), an innovative e-commerce solutions company based in Riverside, California.

TTC's main client base includes organizations in education, banking, mortgage, insurance, retail, and government.

TTC was founded in 1996 and has since assisted clients with a wide range of e-commerce initiatives, ranging from developing and hosting e-Stores that process online financial transactions to building Extranet solutions for education systems in California that handle highly sensitive financial data.

Commenting on the acquisition, Applied Digital's Chairman and CEO, Richard J. Sullivan said: "We're delighted to be adding the considerable talent and knowledge of the TTC team to our growing organization. In particular, TTC's expertise in helping financial and educational organizations leverage the power of on-line technologies will be an invaluable addition to our Computer Telephony Internet Integration (CTII(TM)) initiative. Also, as part of our ongoing Vertical Trade Community program, in the coming months we plan to pursue more opportunities to partner with educational institutions, especially in the Distance Learning arena. This TTC acquisition gives us a terrific springboard for doing so."

"Virtually any business or educational organization can take advantage of the Internet to expand its reach, lower costs, improve response time and forge stronger relationships with customers and partners," added Amro Albanna, President of Timely Technology Corporation. "That's been our focus at TTC, and it fits in perfectly with Applied Digital's CTII strategy."

TTC's Education Initiatives

Since 1999, TTC has offered its educational clients a product called "Purchasing 2000," which helps them improve the overall quality of service, reduces operational costs, and provides a flexible model to accommodate a changing business environment. The TTC system incorporates Internet technologies to ensure a flexible delivery model, accessible from various desktop platforms such as Windows 95, 98, NT, Mac, Unix, CE, Internet Explorer and Netscape. Purchasing 2000 seamlessly integrates with existing financial systems, allowing faster deployment of newly developed components, ensuring system robustness and enabling organizations to leverage their existing investments in legacy systems.

About Timely Technology Corporation

Timely Technology Corporation provides innovative e-commerce solutions to a broad range of industries, including education, government, banking, retail and insurance. In addition, the Company offers distance learning solutions tailored to the unique needs of businesses and organizations. TTC also offers seminars focused on teaching businesses how to harness the vast potential of the Internet and create a viable e-commerce strategy encompassing direct marketing, sales, service, purchasing, and the creation of a more dynamic value chain. TTC will be relocating to the University Research Park area of the 856-acre Riverside Regional Technology Park when it opens this fall.

About Applied Digital's CTII(TM) Initiative

Applied Digital Solutions has successfully focused its strategic direction and organized the company into four core business groups: Internet, Telephony, Network and Applications. As part of this successful transformation, the company has positioned itself as a leading-edge provider of Computer Telephony Internet Integration (CTII) services. This CTII focus differentiates Applied Digital Solutions in the e-business solutions marketplace. With CTII, Applied Digital provides the full range of services and skills that companies need to conduct business online. Through its four integrated business groups, Applied Digital designs and deploys complete, front-to-back, web-enabled e-business systems -- all with a single point of contact for the customer.

About Applied Digital Solutions, Inc.

Applied Digital Solutions is a leading-edge, single-source provider of e-business solutions. The Company differentiates itself in the marketplace by enabling e-business through Computer Telephony Internet Integration (CTII(TM)). With five-year revenue growth (from 1994 to 1998) of 64,012%, Applied Digital Solutions is ranked as the fifth fastest-growing technology company by Deloitte & Touche in its 1999 Technology Fast 500 listing. 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.