Applied Digital Solutions Announces Several Fourth-quarter Software Licensing Agreements for Its STR Unit.

Business Editors/High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 24, 2000

Applied Digital Solutions, Inc. (NASDAQ:ADSX) today announced several software licensing agreements between a variety of specialty retail firms and STR, Inc., its Cleveland-based division that specializes in the development of in-store systems and data warehousing tools for the retail industry.

The agreements, signed during the fourth quarter of 1999, were as follows:

-- The Cleveland Indians Baseball Company, Inc., the sole general partner of the partnership that owns the Cleveland Indians, signed agreements for STR's TradeWind(R), TradeCenter, TradeWatch(TM), and TradeRoute applications.

-- Polo Ralph Lauren Corporation, a leader in the design, marketing and distribution of premium lifestyle products, licensed STR's TradeWind and TradeCenter applications.

-- Sur La Table, a Seattle, Washington-based kitchenware retailer that already uses TradeWind, expanded its STR product base by signing an agreement for TradeRoute.

-- Bata - Chile, part of The Bata Shoe Organisation, the world's largest footwear retailer, became the third group within the Bata Shoe Organisation to license TradeWind.

TradeWind is STR's 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. TradeWatch is a premier loss-prevention application. TradeRoute is a new suite of communications and messaging applications that incorporates Internet-style communications over a wide area network to enable specialty retailers to connect their stores with their corporate offices.

Expansion of Existing Licenses

STR clients who expanded existing STR licenses in the fourth quarter include:

-- Donna Karan International, Inc., one of the world's leading fashion design houses.

-- The Estee Lauder Companies Inc., one of the world's premier manufacturers and marketers of quality skin care, makeup, fragrance and hair care products;

-- Bata - Canada, part of The Bata Shoe Organisation;

-- Novus, Inc., a large medium-to-high-end shoe retailer in Puerto Rico;

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

-- Joan and David Helpern, Inc., a Massachusetts-based designer footwear retailer;

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

Commenting on these developments at STR, Applied Digital Chairman and CEO Richard J. Sullivan said: &uot;We're delighted that STR continues to attract major retail clients to its already impressive roster of customers. STR's range of in-store systems and data warehousing services is second-to-none in the industry, and our expanding lineup of top retail customers attests to that fact.&uot;

About STR, Inc.

STR, Inc., an Applied Digital Solutions company, develops and markets in-store systems and corporate data warehousing tools to the retail industry. STR has more than 15,000 contracted installations in a client base of internationally recognized specialty retail companies. To learn more about STR, please visit www.STRinc.com.

About Applied Digital Solutions, Inc.

Applied Digital Solutions, Inc. is an e-business to business solutions provider offering Internet, telecom, LAN and software services to a wide variety of businesses throughout North America. For more information, visit the Company's web site at 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.