Applied Digital Solutions Hires Dr. Peter Zhou as Chief Scientist to Spearhead Development of Digital Angel Technology.

Business Editors/High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 7, 2000

Company believes the implantable device will have applications in a

variety of beneficial areas, including e-business security,

health care and law enforcement

Applied Digital Solutions, Inc. (NASDAQ:ADSX) today announced the appointment, effective January 17, of Dr. Peter Y. Zhou, a noted scientist and holder of numerous patents in the field of electronic detection systems, as its new chief scientist in charge of developing the recently announced Digital Angel(tm) technology.

The company hopes to have a prototype of the Digital Angel device available for testing by the end of this year.

Dr. Zhou is currently serving as Vice President of Technology at Sentry Technology Corporation based in Hauppauge, New York. Prior to this, Dr. Zhou held the position of Vice President, Technology, at Knogo North America.

Dr. Zhou has also been an Adjunct Professor at State University of New York (Old Westbury). Earlier in his career, Dr. Zhou was a Research Investigator at the University of Pennsylvania, and a Research Scientist at Max-Planck Institute in Stuttgart, Germany. He holds a Ph.D. in Materials Science from the University of Pennsylvania and a Master of Science degree in Solid State Physics from Beijing University of Science and Technology.

"Dr. Zhou brings enormous expertise to ADS, and especially to our Digital Angel R&D effort," said Richard J. Sullivan, Chairman and CEO of ADS. "Given Dr. Zhou's track record of success in developing related technologies, we're very hopeful that he will be able to help us speed the development of this potentially life-saving technology," he further stated.

In his new position, Dr. Zhou will serve as Vice President and Chief Scientist at ADS and as President and Chief Scientist of ADS's wholly owned subsidiary, Digital Angel.net, Inc. Commenting on his new position, Dr. Zhou said: "I'm excited about this opportunity. I believe Digital Angel will have many useful commercial applications in the e-business arena, as well as many applications in the area of health and safety. This truly is a new technology for the new millennium."

ADS announced on December 15, 1999, that it had acquired the patent rights to a miniature digital transceiver - which it has named Digital Angel -- that can be used for a variety of purposes, such as providing a tamper-proof means of identification for enhanced e-business security, locating lost or missing individuals, monitoring livestock, tracking the location of valuable property and monitoring the medical conditions of at-risk patients.

Under the terms of its agreement acquiring the patent rights to Digital Angel, ADS has the right to develop the device itself for all of its applications or to sublicense the development of specific applications to other entities.

The implantable Digital Angel transceiver sends and receives data and can be continuously tracked by GPS (Global Positioning Satellite) technology. The transceiver's power supply and actuation system are unlike anything ever created. When implanted within a body, the device is powered electromechanically through the movement of muscles, and it can be activated either by the "wearer" or by the monitoring facility. A novel sensation feedback feature will even allow the wearer to control the device to some degree. The "smart" device is also small enough to be hidden inconspicuously on or within valuable personal belongings and priceless works of art.

ADS is actively seeking joint venture partners to help develop and market the unique technology. The company expects to create a working prototype by the end of next year.

For more information about the Digital Angel technology, visit Digital Angel.net, Inc.'s website at http://www.digitalangel.net.

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 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.