Applied Digital Solutions Increases Its Investment in Digital Angel Corporation.Business Editors PALM BEACH, Fla.--(BUSINESS WIRE)--Aug. 14, 2003 Applied Digital Solutions, Inc. (Nasdaq: ADSX ADSX Applied Digital Solutions, Inc. (stock symbol) ) -- Applied Agrees to Buy Three Million Shares of Digital Angel Corporation -- Scott R. Silverman, Applied Digital CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , joins Digital Angel Corporation's Board of Directors Applied Digital Solutions, Inc. (Nasdaq: ADSX) an advanced technology development company, announced today that it has agreed to purchase three million additional shares in Digital Angel Corporation (Amex: DOC). After the purchase is completed, Applied Digital Solutions ("Applied") will own more than 22 million shares (roughly 76 percent) of DOC. As part of the purchase, DOC would grant to the Company a warrant to purchase an additional one million shares. In making the announcement, Scott R. Silverman, Chairman and CEO, said that "the additional investment reflects Applied's belief that DOC is greatly undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. at the present time. Digital Angel Corporation has a strong product mix and innovative technologies that make this investment extremely attractive." The Company also announced that Mr. Silverman has joined DOC's Board of Directors. An additional independent Director of DOC will be nominated by Applied. Commenting on these developments, Mr. Silverman stated: "With our additional investment in DOC, Applied Digital shareholders should begin to realize the increased flexibility the Company now has after fully satisfying our debt obligations to IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Credit. Our business model is underpinned by our innovative personal safeguard technologies, including Digital Angel(TM), VeriChip(TM) and Thermo Life(TM). When mature, each technology will be paired with a complementary operating company operating company A business that engages in transactions with outsiders. that brings a revenue base and a proven management team. "The Digital Angel GPS product was Applied's first personal safeguard technology. Several years ago, we purchased Destron Fearing Corporation, a leader in animal identification technologies, including an implantable RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. microchip for pets, livestock and wildlife. Destron's technologies and capabilities complement the Digital Angel product. The end result is Digital Angel Corporation -- a Company built on first-of-its-kind technology and strengthened by complementary products. As the Digital Angel product adapts to changing wireless protocol and assisted GPS GPS is a satellite based positioning system. Assisted GPS, or A-GPS was introduced to enhance performance. The development of A-GPS was accelerated by the U.S. FCC's E911 mandate requiring the position of a cell phone to be available to emergency call dispatchers. capabilities, it is our belief that its market presence will continue to grow. This growth, coupled with leading animal applications technologies that produce consistent revenue streams, should translate into increased long-term shareholder value. "All of the moves announced today demonstrate that Applied Digital is fully committed (Law) committed to prison for trial, in distinction from being detained for examination. See also: Fully not only to increasing our strategic investment in DOC, but also to maximizing that investment for the benefit of ADSX and DOC shareholders. I believe this additional strategic investment will prove to be a significant win-win for long-term investors in both companies." About Digital Angel Corporation On March 27, 2002, Digital Angel Corporation completed a merger with Medical Advisory Systems, Inc., which for two decades has operated a 24/7, physician-staffed response center in Owings, Maryland Owings is a census-designated place (CDP) in Calvert County, Maryland, United States. The population was 1,325 at the 2000 census. Geography Owings is located at (38.711919, -76.603901)GR1. . Prior to the merger, Digital Angel Corporation was a 93% owned subsidiary of Applied Digital Solutions, Inc. (Nasdaq: ADSX - News), which now is the majority owner of the company. Digital Angel(TM) technology represents the first-ever combination of advanced sensors and Web-enabled wireless telecommunications linked to Global Positioning Systems (GPS). By utilizing advanced sensor capabilities, Digital Angel is able to monitor key functions -- such as ambient temperature Outside temperature at any given altitude, preferably expressed in degrees centigrade. and physical movement -- and transmit that data, along with accurate emergency location information, to a ground station or monitoring facility. The company also invented, manufactures and markets implantable identification microchips the size of a grain of rice for use in humans, companion pets, fish, and livestock. Digital Angel Corp. owns the patents for its inventions in all applications of the implantable microchip technology  Microchip Technology (NASDAQ: MCHP) is a manufacturer of microcontroller, memory and analog semiconductors, founded in 1989 when for humans and animals. For more information about Digital Angel Corp., visit www.DigitalAngelCorp.com. About VeriChip(TM) VeriChip is a subdermal sub·der·mal adj. Located or placed beneath the skin; subcutaneous. , radio frequency identification See RFID. (RFID) device that can be used in a variety of security, financial, emergency identification and other applications. About the size of a grain of rice, each VeriChip product contains a unique verification number that is captured by briefly passing a proprietary scanner over the VeriChip. A small amount of radio frequency energy passes from the scanner energizing energizing, adj giving energy to; revitalizing; rejuvenating. the dormant VeriChip, which then emits a radio frequency signal transmitting the verification number. In October 2002, the US Food and Drug Administration (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ) ruled that VeriChip is not a regulated device with regard to its security, financial, personal identification/safety applications but that VeriChip's healthcare information applications are regulated by the FDA. VeriChip Corporation is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Applied Digital Solutions (Nasdaq: ADSX). For more information about VeriChip, visit www.adsx.com. About Thermo Life(TM) Thermo Life is a miniaturized, thermoelectric ther·mo·e·lec·tric also ther·mo·e·lec·tri·cal adj. Characteristic of, resulting from, or using electrical phenomena occurring in conjunction with a flow of heat. generator powered by body heat. On July 9, 2002, the Company announced that it had achieved an important breakthrough: 3.0-volts of electrical power successfully generated by Thermo Life in laboratory tests. The Company believes Thermo Life technology has a wide variety of potential uses, including the powering of various electronic devices, wristwatches, medical devices, smoke detectors and other heat-related sensors. If Thermo Life performs as expected in commercial applications, this technology could effectively eliminate the need to periodically replace the power source of these devices. Thermo Life technology can also provide an independent, heat-generated power source for security related sensors. Thermo Life Energy Corporation is a wholly owned subsidiary of Applied Digital Solutions. About Applied Digital Solutions, Inc. Applied Digital Solutions is an advanced technology development company that focuses on a range of life-enhancing, personal safeguard technologies, early warning alert systems, 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. Applied Digital Solutions owns a majority position in Digital Angel Corporation (AMEX: DOC). 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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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. |
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