Applied Digital Solutions Appoints Frank E. Lalley to New Position - Vice President of Government Solutions.

Business Editors, High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--May 3, 2002

Applied Digital Solutions, Inc. (Nasdaq: ADSX):

Lalley will continue serving as President and CEO 

of the company's Computer Equity (Compec) and Government

Telecommunications (GTI) units - added role aimed at meeting

government needs for advanced technologies such as

VeriChip(TM), Thermo Life(TM) and Digital Angel(TM)

Applied Digital Solutions, Inc. (Nasdaq: ADSX), an advanced technology development company, today announced that Frank E. Lalley, President and CEO of the company's Computer Equity (Compec) and Government Telecommunications (GTI) subsidiaries, has been appointed to the additional position of Vice President for Government Solutions.

The new position is aimed at meeting government needs for the company's advanced technology products, such as VeriChip, Thermo Life and Digital Angel, which is now part of Digital Angel Corporation (Amex: DOC).

Mr. Lalley joined Applied Digital's Compec subsidiary in January 2002 after a distinguished, 35-year career in the federal government. Most recently, Mr. Lalley served as Assistant Commissioner for Service Delivery in the General Services Administration's Federal Technology Service. In that position, he was the senior executive responsible for the Federal government's $1 billion long distance telecommunications program that provides voice, data, video, wireless, and satellite services to 165 government agencies around the world.

Commenting on the new appointment for Mr. Lalley, Scott R. Silverman, President of Applied Digital Solutions, said: "With the attention that VeriChip, Digital Angel and Thermo Life have attracted from all levels of government, it was imperative to bring in someone with Frank Lalley's extensive experience and reputation for effective leadership in the public sector. His knowledge, expertise and vast network of governmental contacts will help enormously as we respond to the needs of various government agencies for our advanced technology solutions. We're delighted that Frank has agreed to take on this added responsibility and we're confident that this expansion of his role within Applied Digital will help us seize significant growth opportunities in the public sector."

About Computer Equity, Inc. and GTI

Computer Equity, Inc. (Compec), including its wholly owned subsidiary, GTI, is headquartered in Chantilly, Virginia. With a revenue base that exceeds $30 million, Compec specializes in providing a full array of telecommunications, wireless and network integration services to government agencies. Compec's customers include major agencies of the Federal government such as the Social Security Administration, the Department of Justice and the Department of Defense.

Compec offers turnkey solutions, including any necessary local exchange carrier coordination, equipment provisioning, personnel training, legacy system upgrades and network systems integration. Compec's "total solution" capability involves the delivery of data, voice and video throughout a customer's facility directly to the desktop. Compec's expertise incorporates the design, provisioning, installation and maintenance of networks, including everything from the cable infrastructure, to the backbone hardware and the desktop itself. During the last three years, Compec has installed network solutions in over 6000 locations nationwide. These network solutions have included projects ranging nationwide rollouts to campus-wide SONET systems and single office LANs.

About VeriChip(TM)

VeriChip, first announced on December 19, 2001, is a miniaturized, implantable, radio frequency identification device (RFID) that can be used in a variety of security, emergency and healthcare applications. On April 4, 2002, the company announced that it had received written guidance that the U.S. Food and Drug Administration (FDA) does not consider VeriChip's personal verification device to be a regulated medical device, enabling the company to begin sales, marketing and distribution of VeriChip in the United States. About the size of a grain of rice, each VeriChip is composed of FDA-accepted materials and contains a unique verification number. That number is captured by briefly passing a proprietary, external scanner over the VeriChip. A small amount of radio frequency energy passes through the skin energizing the dormant VeriChip, which then emits a radio frequency signal transmitting the verification number. The company believes its first-mover advantage will enable it to gain significant market share in the emergency information and verification market that is estimated to exceed $15 billion. VeriChip Corporation is a wholly owned subsidiary of Applied Digital Solutions.

About Digital Angel(TM)

Digital Angel(TM) technology represents the first-ever combination of advanced biosensors and Web-enabled wireless telecommunications linked to the Global Positioning System (GPS). By utilizing advanced biosensor capabilities, Digital Angel will be able to monitor key body functions - such as temperature and pulse - and transmit that data, along with accurate emergency location information, to a ground station or monitoring facility. Digital Angel Corporation (Amex: DOC) was formed on March 27, 2002, in a merger between Digital Angel Corporation and Medical Advisory Systems, a global leader in telemedicine that has operated a 24/7, physician-staffed call center in Owings, Maryland, for two decades. Prior to the merger, Digital Angel Corporation was a wholly owned subsidiary of Applied Digital Solutions. Applied Digital Solutions is the beneficial owner of 19.6 million shares of Digital Angel Corporation. For more information about Digital Angel, visit www.digitalangel.net.

About Thermo Life(TM)

Thermo Life is a proprietary, thermoelectric generator powered by body heat. Thermo Life is intended to provide a miniaturized power source for a wide range of consumer electronic devices, including attachable or implantable medical devices and wristwatches.

About Applied Digital Solutions, Inc.

Applied Digital Solutions (Nasdaq: ADSX) is an advanced technology development company that focuses on a range of early warning alert, miniaturized power sources and security monitoring systems combined with the comprehensive data management services required to support them. Through its Advanced Technology Group, the company specializes in security-related data collection, value-added data intelligence and complex data delivery systems 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. 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.