Applied Digital Solutions Subsidiary, Digital Angel.net Inc, Signs Research Agreement With Princeton University and New Jersey Institute of Technology.

Business Editors/High Tech Writers

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

Expanded research team to speed development of Digital Angel(TM)

device for emergency medical monitoring, commodity supply chain

management, food safety, preventing misuse of firearms, locating

missing individuals and pets, tracking valuable property, and

providing tamper-proof identification for e-commerce security

Applied Digital Chairman, Richard Sullivan, believes Digital Angel

technology could launch new era in "location-aware" e-commerce

Applied Digital Solutions, Inc. (NASDAQ:ADSX) today announced that its wholly owned subsidiary, Digital Angel.net Inc., has signed a research agreement with Princeton University and the New Jersey Institute of Technology.

The expanded research team will assist in the development of Digital Angel(TM), a miniature digital transceiver that could be used for a variety of purposes, such as monitoring the medical conditions of at-risk patients, commodity supply chain management, food safety, preventing the unauthorized use of firearms, providing a tamper-proof means of identification for enhanced e-commerce security, locating lost or missing individuals or pets, and tracking the location of valuable property. It is anticipated that the tiny device - which is intended to be bonded closely to the body or implanted just under the skin - will be able to send and receive data and that it will be tracked by GPS (Global Positioning System) technology.

With the newly signed research agreement, three noted experts in the field of wireless telecommunications and geo-location technologies will join the Digital Angel research team. The three scientists are: Hisashi Kobayashi, Ph.D., of Princeton University's Department of Electrical Engineering; and Sirin Tekinay, Ph.D., and Edip Niver, Ph.D., both of the New Jersey Institute of Technology's Department of Electrical and Computer Engineering. Dr. Peter Zhou, President and Chief Scientist at Digital Angel.net Inc., will continue to provide overall leadership of the Digital Angel research effort.

Commenting on the research agreement, Richard J. Sullivan, Chairman and CEO of Applied Digital Solutions, said: "We're delighted that these three renowned experts, who are affiliated with such prestigious institutions, will be joining our effort to develop Digital Angel. As previously announced, our goal is to produce a working prototype before the end of this year. We're making enormous progress toward that goal, and I'm confident that this expanded research team will help us meet it. We continue to see a huge potential market for Digital Angel, and we're especially excited about the role this device could play in launching what we call 'location-aware e-commerce."

Professor Sirin Tekinay of the New Jersey Institute of Technology said: "We are excited about this research project. The Digital Angel concept bears the potential to provide applications of significant value and high impact. We are happy to be working with Dr. Peter Zhou on the enabling technologies for these applications and on the general proof of this exciting concept."

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). With five-year revenue growth (from 1994 to 1998) of 64,012%, Applied Digital Solutions is 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.