Coldwater Creek Chooses Applied Digital Solutions' TradeWind System to Manage In-store and Point-of-sale Operations in Retail Stores.

Business Editors/High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--June 5, 2000

Applied Digital Solutions, Inc., (NASDAQ:ADSX) a single-source provider of e-business solutions, today announced that its TradeWind(R) software system was selected by Coldwater Creek, Inc. (NASDAQ:CWTR) to manage in-store and point-of-sale operations for the specialty retailer's expanding national chain of stores.

In addition, Coldwater Creek will install Applied Digital's TradeCenter(R) data warehousing software and TradeRoute(R) Internet messaging application to connect all of its operations with the company's corporate office. Coldwater Creek offers women's apparel, jewelry, gifts and home accessories through four full-line stores and 10 outlet locations. The company will open four additional full-line stores in Chicago, Dallas, Denver, and Cincinnati during the summer and fall of fiscal 2000, with eventual plans for as many as 80 locations in 29 states.

Because of Coldwater Creek's aggressive growth plans for its brick-and-mortar operations, the company determined that a comprehensive point-of-sale system -- capable of maintaining extensive customer portfolios -- would be the only solution for serving its complex needs. The system also would have to be capable of rapidly gathering and sharing customer and product information from all of the company's locations as well as its Web site.

"We did not want to simply buy a set of products," said John F. Shaw, Jr., Coldwater Creek's Director, IS Development and Support. "We were looking for a partnership with a company that really understands and fits our own corporate culture -- which is based on providing true customer service to our shoppers, no matter which channel they shop. Applied Digital got to know our business and our people, learned our retail operations, and met with our existing business partners to outline how all of the solutions would fit together to achieve our objectives."

Shaw went on to say that Applied Digital's products and applications ultimately were chosen because of their integrated architecture and comprehensive functionality. "The TradeWind point-of-sale application is very straightforward in its ease-of-use and its ability to capture customer information quickly in the format we need."

Commenting on the announcement, Applied Digital Chairman and CEO Richard J. Sullivan said: "Coldwater Creek is already well known for delivering outstanding customer service. Our in-store and point-of-sale applications will help Coldwater Creek continue to deliver this high level of service more quickly and conveniently, even while the company grows. We're delighted to be working with such a customer-focused, growth-oriented partner."

TradeWind is Applied Digital Solutions' award winning in-store application that helps to improve customer service, enhance inventory-tracking capabilities and streamline the management of an operation's customer information database. TradeRoute is a new suite of communications and messaging applications that incorporates Internet-style communications over a wide area network (WAN) to enable specialty retailers to connect their stores with their corporate offices. TradeCenter is Applied Digital's highly innovative data warehousing software.

About Coldwater Creek, Inc.

Coldwater Creek is a multi-channel retailer of unique collections of classic, comfortable women's apparel, jewelry, gift items, and soft-home merchandise through direct mail catalogs, an e-commerce Web site at http://www.coldwatercreek.com and retail stores in highly visible, well-trafficked locations. Through the core Creek merchandise assortments, which include Northcountry, Spirit of the West, Natural Elements and Coldwater Creek Home and through several specialty and seasonal books, the Company uses its well-defined brand to target a large, affluent demographic of women between the ages of 35 and 55.

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.