Applied Digital Solutions Prepares ``Protected by VeriChip'' Product Awareness Campaign.

Business Editors, High Tech and Health & Medical Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--June 6, 2002

Company outlines potential security, defense, homeland security,

financial anti-fraud and identity-theft applications for

VeriChip's secure personal verification technology

Applied Digital Solutions, Inc. (Nasdaq: ADSXE), an advanced technology development company, today announced that it is preparing to launch a "Protected by VeriChip(TM)" product awareness campaign to demonstrate the potential for VeriChip(TM) as a personal safeguard technology that includes applications in the defense, security and financial sectors.

Since first announcing VeriChip last December, the company has referred to VeriChip's applications in the security, emergency identification and healthcare fields. For the first time, the company is now providing additional insights into very promising applications for VeriChip in the defense, security and financial sectors.

In the security field, the company is actively developing applications for VeriChip in a variety of security, defense, homeland security and secure-access applications. These opportunities include using VeriChip to control authorized access to government installations and private-sector buildings, nuclear power plants, national research laboratories, correctional facilities, and sensitive transportation resources. VeriChip can enhance airport security, airline security, cruise ship security, intelligent transportation and port congestion management. In these markets, VeriChip could function as a stand-alone, tamper-proof personal verification technology or it could operate in conjunction with other security technologies such as standard ID badges and advanced biometric devices (i.e. retina scanners, thumbprint readers or face recognition devices).

The concept of using VeriChip as a means for secure access could also be extended to include a range of consumer products such as PCs, laptops, cars, cell phones, and even homes and apartments.

In the financial arena, the company sees enormous, untapped potential for VeriChip as a personal verification technology that could help to prevent fraudulent access to banking (especially via ATMs) and credit card accounts. VeriChip's tamper-proof, personal verification technology would provide banking and credit card customers with the added protection of knowing their accounts could not be accessed unless they themselves initiated -- and were physically present during -- the transaction.

One of the most promising areas being explored is identity theft. Crime statistics show that identity theft claims hundreds of thousands of victims every year. VeriChip offers a simple solution: a tamper-proof, personal verification technology that will deter identity theft by making it virtually impossible for criminal elements to access someone else's financial accounts and records.

Commenting on the "Protected by VeriChip" awareness campaign, Scott R. Silverman, President of Applied Digital Solutions, said: "This `Protected by VeriChip' awareness campaign will demonstrate the far-reaching applications of VeriChip in security, homeland security, personal identification, defense, emergency, and a range of financial and anti-fraud areas. We're moving forward on all of these applications as quickly as possible. We believe the phrase `Protected by VeriChip' will serve as a positive reminder that VeriChip subscribers will enjoy an added measure of safety, security and peace of mind."

About VeriChip(TM)

VeriChip, first announced on December 19, 2001, is a miniaturized radio frequency identification device (RFID) that can be used in a variety of security, emergency and healthcare applications. About the size of a grain of rice, each VeriChip product contains a unique verification number and will be available in several formats, some of which will be insertable under the skin. The verification number is captured by briefly passing a proprietary scanner over the VeriChip. A small amount of radio frequency energy passes from the scanner energizing the dormant VeriChip, which then emits a radio frequency signal transmitting the verification number. VeriChip Corporation and its parent company, Applied Digital Solutions, are working with federal regulators to ensure full compliance with applicable regulations. The company believes its first-mover advantage will enable it to gain significant market share in the emergency information and personal verification market. VeriChip Corporation is a wholly owned subsidiary of Applied Digital Solutions.

About Applied Digital Solutions, Inc.

Applied Digital Solutions (Nasdaq: ADSXE) 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.