Applied Digital Solutions Announces Acquisition of Hornbuckle Engineering.

PALM BEACH, Fla.--(BUSINESS WIRE)--

July 1, 1999 - Applied Digital Solutions, Inc. (NASDAQ/NMS:ADSX) today announced that it has completed the acquisition of Hornbuckle Engineering (previously dba MicroAge Monterey), an integrated voice and data solutions provider based in Monterey, California.

Going forward the company will do business as ADS Monterey and will join the Company's Network Infrastructure division. ADS Monterey is expected to generate approximately $10 million in revenues and $1.1 million of earnings before interest and taxes (EBIT) over the next 12 months. Applied Digital acquired ADS Monterey for consideration of $3.5 million at closing with additional earn-out agreements over the next two years based on meeting previously determined financial goals.

Applied Digital's Chairman and CEO, Richard J. Sullivan, commented, "ADS Monterey is an important addition to our Network Infrastructure division. The firm focuses primarily on services and products related to integrated network data solutions and can install an entire LAN backbone infrastructure from cabling to integrated telephony to specialized computer applications with Internet enabled capabilities. Their highly experienced management team will remain and work closely with our other divisions to identify cross-selling opportunities."

Dr. Gary Hornbuckle, the founder of Hornbuckle Engineering and the new President of ADS Monterey, stated, "We are pleased to join the Applied Digital team and look forward to working closely with the other divisions. As businesses' communications needs and services continue to expand, we see tremendous opportunity for the development of computer and communications systems to enable them to combine voice and high-speed data systems on one network. We are especially excited about the opportunities to provide our clients with new Internet products and services by becoming an ADS company."

Applied Digital Solutions 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 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.applieddig.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.