Applied Digital Solutions Records Gain of $4.3 Million on Sale of Intellesale's PPL, Ltd. Unit.

Business Editors/High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 17, 2001

Applied Digital Solutions, Inc. (NASDAQ: ADSX) announced today that it had sold former Intellesale unit PPL, Ltd. ("PPL") to management of PPL for $10 million, in cash and notes, effective December 29, 2000.

The sale, representing a gain of $4.3 million, will help offset anticipated reserves in YE 2000 as part of on-going discussions to sell remaining Intellesale assets to strategic acquirer. PPL is involved in trade show and exhibition planning.

In a statement, Mercedes Walton, President and COO of Applied Digital Solutions, commented on the sale of assets: "This sale of PPL is very much in keeping with our strategy of divesting of non-core assets. This sale, which represents a gain of $4.3 million, is the first phase of a plan to sell remaining Intellesale assets. The proceeds from the disposition of these assets will then be more effectively deployed within the core business of Applied Digital, including further development of Digital Angel."

About IntelleSale.com, Inc.

A subsidiary of Applied Digital Solutions, Inc., IntelleSale.com, Inc., is the leading provider of open-box, overstock, off-lease, new and refurbished computer equipment and related products at deeply discounted prices. The company sells products online through www.intellesale.com and other Internet portals, such as C/Net, Amazon.com, Egghead+Onsale and Ubid. In addition, the company sells products through traditional distribution channels, including the Intellesale.com sales force and advertising via catalogs and other conventional media.

About Applied Digital Solutions, Inc.

Applied Digital Solutions is a leading edge, single-source provider of e-business solutions. The company differentiates itself in the marketplace by enabling e-business through Computer Telephony Internet Integration (CTII(TM)). 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.