Applied Digital Solutions Announces First Quarter Software Licensing Agreements With Major Retail Chains.

Business Editors/High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--April 18, 2000

Applied Digital Solutions, Inc., (NASDAQ:ADSX) a single-source provider of e-business solutions, today announced several new software licensing agreements with a variety of specialty retail firms for the company's in-store systems and data warehousing tools, developed specifically for the retail industry.

The agreements, signed during the first quarter of 2000, were as follows:

-- Steve Madden Retail, a leading designer, wholesaler and marketer of women's footwear, signed agreements for Applied Digital's TradeWind(R), TradeCenter(R), TradeCenter Loss Prevention, TradeCenter Corema(R) EXPRESS, and TradeRoute applications.

-- Strouds, a specialty retailer of bed, bath, tabletop and other home textile products, signed agreements for TradeWind, TradeCenter and TradeRoute.

-- Galyan's Trading Company, a sporting goods retail chain established in 1946, signed agreements for TradeWind, TradeCenter and TradeCenter Loss Prevention.

-- Coldwater Creek, a multi-channel retailer specializing in casual clothing, gifts, jewelry, home furnishings and accessories, signed agreements for TradeWind, TradeCenter and TradeRoute.

-- Bata - Czech Republic, Bata - Italy, Bata - Indonesia, Bata - Switzerland, and Bata - Thailand (all individual entities in The Bata Shoe Organisation, the world's largest footwear retailer) signed agreements to license TradeWind.

In addition to these new agreements, Polo Ralph Lauren Corporation expanded its base of Applied Digital's products by signing an agreement for TradeRoute. Polo Ralph Lauren Corporation is a leader in the design, marketing and distribution of premium lifestyle products.

Commenting on the licensing agreements, Applied Digital Chairman and CEO Richard J. Sullivan said, "We're delighted to add these major retailers to our rapidly expanding client base, which already includes some of the best-known and most respected companies in the retail industry. These new agreements clearly show that Applied Digital offers an array of in-store systems and data warehousing services that is second-to-none."

TradeWind is Applied Digital Solutions' award winning in-store application that helps to improve customer service, enhance inventory tracking capabilities and streamline the management of an operation's customer information database; TradeCenter is the company's highly innovative data warehousing software; TradeCenter Loss Prevention is a premier loss-prevention application. TradeCenter Corema EXPRESS is a customer marketing relationship tool; and TradeRoute is a new suite of communications and messaging applications that incorporates Internet-style communications over a wide area network (WAN) to enable specialty retailers to connect their stores with their corporate offices.

Expansion of Existing Licenses

The following Applied Digital clients expanded existing licenses in the first quarter:

-- Cole-Haan, an upscale retailer of men's and women's footwear and accessories.

-- Jos. A. Bank Clothiers, a Maryland-based men's apparel retailer.

-- Smith & Hawken, a Califiornia-based cataloguer and retailer that sells a wide range of gardening and lifestyle products.

-- Sur La Table, a kitchen retailer based in Seattle, Washington.

-- Suzy Shier Limited, a leading Canadian women's apparel retailer.

-- United Fashions of Texas, a family-run specialty retailer of women's apparel and accessories.

-- Famous Brands Shoes, a privately held footwear retailer headquartered in St. Louis.

-- Noodle Kidoodle, an innovative specialty retailer of children's edu-tainment products.

-- Rand McNally, the world's premier provider of geographic and travel information.

-- Paul Harris, a leading specialty retailer of women's clothing.

Prior to the first quarter of 2000, Applied Digital Solutions offered its in-store systems and data warehousing tools under the name of STR. As part of Applied Digital's effort to enable e-business solutions through CTII(TM) -- Computer Telephony Internet Integration - the STR business unit has been integrated into Applied Digital's Applications Group.

About the CTII(TM) Initiative

Applied Digital Solutions has successfully refocused 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 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). 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 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. 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.