Applied Digital Solutions Signs First Latin American Remarketer for VeriChip.

Business Editors/High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 24, 2002

Applied Digital Solutions, Inc. (Nasdaq: ADSX) an advanced digital technology development company, today announced that it has entered into its first Latin American Remarketing Agreement for VeriChip(TM) and other Applied Digital Solutions' products.

The remarketer has received the "first right to market" for VeriChip and other Applied Digital products in three Latin American countries. Initial orders exceed $300,000 and it is anticipated that first year revenue will approach $2 million.

"We have received an overwhelming interest in VeriChip worldwide," stated Richard J. Sullivan, Chairman and CEO of Applied Digital. "The demand for products that add safety and security to everyday life is particularly strong in Latin America as a result of its political, economic, and social climate. Even before the recent extensive media coverage, we had been receiving dozens of inquiries and unsolicited offers to distribute our products in Latin America. In the past few weeks, the interest has grown exponentially. We selected this first Latin American distributor from dozens of suitors after careful due diligence revealed their financial stability, proven track record, and long-standing reputation with local government and corporate leaders."

How VeriChip Works

VeriChip is an implantable radio frequency device about the size of the point of a typical ballpoint pen. Each VeriChip will contain a unique identification number and other critical data. Utilizing an external scanner, radio frequency energy passes through the skin energizing the dormant VeriChip, which then emits a radio frequency signal transmitting the identification number and other data contained in the VeriChip. The scanner will display the identification number, but the VeriChip data can also be transmitted, via telephone or the Internet, to an FDA compliant, secure data-storage site. It will then be accessible by authorized personnel. Inserting the VeriChip device is a simple procedure performed in an outpatient, office setting. It requires only local anesthesia, a tiny incision and perhaps a small adhesive bandage. Sutures are not necessary.

Medical Device Identification

Hundreds of thousands of medical devices are surgically implanted into patients every year. Examples of these life-saving and life-enhancing devices include pacemakers, artificial joints, orthopedic hardware, heart valves, and medication pumps. After insertion, these devices often require adjustment, repair, replacement, or even recall. VeriChip, inserted subdermally just above the implanted medical device, provides patients, medical providers, and manufacturers with a rapid, secure and non-invasive method for obtaining medically critical information about the device. VeriChip is a ready source of data about the patient (such as name, emergency contact information, allergies to medications), as well as the medical device's original components, required settings and other essential parameters. Future applications may include full medical record archival/retrieval for emergency medical care.

Emergency or Security-related Identification

Personal identity verification technology has gained considerable interest recently. A great deal of focus has been trained on so-called "biometric" technologies - which identify individuals by their unique biological or physical characteristics, such as fingerprints, voiceprints, retina characteristics, and face recognition points. VeriChip, by contrast, relies on imbedded, tamper-proof, microchip technology, which allows for non-invasive access to identification, medical and other critical data. Use of advanced VeriChip technology means that the threat of theft, loss, duplication or counterfeiting of data is substantially diminished or eliminated. Specific application areas include: enhancement of present forms of identification, search and rescue, and various law enforcement and defense uses.

About Applied Digital Solutions, Inc.

Applied Digital Solutions is an advanced digital 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 Wireless unit, 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. 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.