Applied Digital Solutions Delays Action On S-3 Shelf Registration.

Business Editors/High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--April 5, 2000

Applied Digital Solutions, Inc. (NASDAQ:ADSX) Applied Digital Solutions announced today its decision to delay selling shares of its common stock it recently registered with the Securities Exchange Commission.

Applied Digital's S-3 shelf registration statement, registering three million shares of its common stock to sell from time to time, was recently declared effective by the SEC. Reported use of proceeds included general corporate purposes and potential acquisition opportunities.

In a statement, Richard J. Sullivan, Chairman and CEO of Applied Digital, explained the decision. "Based upon our strong 1999 earnings report, our track record of tremendous growth, and our recently outlined acquisition strategy and CTII (TM) (Compute-Telephony-Internet Integration) initiatives, we feel that shareholder value is best served by a delay of selling shares. We believe that the current market conditions, which have created a dramatic increase in reported margins calls, combined with the tremendous liquidity of our stock, have created a situation in which our stock is undervalued. In the absence of an immediate need for the proceeds, we will revisit the sale of shares at a more appropriate time."

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. Applied Digital Solutions 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 was 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 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.