Applied Digital Solutions Subsidiary, Timely Technology Corporation, Strengthens Unique Information Technology Partnership With Major School District in California.

Business Editors, High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--Oct. 10, 2000

Applied Digital Chairman and CEO envisions a national education

partnership based on the model established in San Bernardino County

Applied Digital Solutions, Inc. (NASDAQ: ADSX), a leading, single-source provider of e-business solutions, today announced that Timely Technology Corporation (TTC), its innovative e-commerce solutions provider based in Riverside, California, has signed a new contract with the San Bernardino County Superintendent of Schools (SBCSS) that strengthens the successful two-year-old relationship between TTC and SBCSS and creates a unique public/private partnership between the two.

Under the new agreement, TTC will initiate a year-long effort that focuses on two key objectives: 1) bringing the SBCSS's personnel system in line with the most efficient online technologies available; and 2) deploying an enterprise reporting engine to provide system users with easy access to timely, on-demand data.

"We welcome the opportunity to renew and strengthen our collaboration with SBCSS," said Richard J. Sullivan, Chairman and CEO of Applied Digital Solutions, noting the current undertaking further advances the capabilities of the innovative Financial 2000 system, which was recently deployed successfully at various San Bernardino County districts. "The Financial 2000 system provides K-14 educational organizations with richer functionality for a broad range of administrative and business needs, including streamlined purchasing, accounts lookup and teacher credentialing. And the distinctive synergy between SBCSS's unique education business logic and TTC's technology expertise continues to enhance a mutually rewarding partnership between the private and public sectors. In fact, we think this partnership could serve as a national model for a broader initiative across the country."

Commenting on the agreement, Nancy DeNolf, Senior Administrator of Information Technology for SBCSS, said: "The group of professionals at TTC bring industry strength to our education environment on a daily basis. Our partnership has allowed our Information Technology staff to be involved in designing and implementing new systems for our schools while remaining committed to providing mission critical day-to-day services with existing systems. This is key to the success of transitioning any staff and client base to new state-of-the-art technologies. What we accomplish through this partnership not only benefits students and school districts in San Bernardino County, but it will also be beneficial to public education throughout California and across the country."

More About Timely Technology's Education Initiatives

Since 1997, TTC has been working with its educational partners to develop products and services that streamline and enhance financial, student and curriculum processes. TTC systems incorporate Internet technologies to ensure a flexible delivery model, accessible from various desktop platforms such as Windows 95, 98, NT, Mac, Unix, CE, Internet Explorer and Netscape. Financial 2000 seamlessly integrates with existing financial systems, allowing faster deployment of newly developed components, ensuring system robustness and enabling organizations to leverage their existing investments in legacy systems.

Timely Technology Corporation also provides innovative e-commerce solutions to a broad range of industries, including government, banking, retail and insurance; and distance-learning solutions tailored to the unique needs of businesses and organizations. In addition, TTC offers seminars focused on teaching businesses how to harness the vast potential of the Internet and create a viable e-commerce strategy encompassing direct marketing, sales, service, purchasing, and the creation of a more dynamic value chain. TTC will be relocating to the University Research Park area of the 856-acre Riverside Regional Technology Park when it opens this fall. For more information about TTC's services, call 909-351-1882, or visit www.timely-technology.com.

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 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 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.