Digital Angel.net, Inc. Signs Letter of Intent With Spain's Plasticos Mondragon, S.A. to Provide Water Control and Environmental Management Solutions.

Business Editors/High Tech Writers

PALM BEACH, Fla.--(BUSINESS WIRE)--Feb. 6, 2001

Proposed alliance highlights versatility of Digital Angel

technology and strengthens European "beachheads"

Applied Digital Solutions, Inc. (NASDAQ: ADSX) announced today that its Digital Angel.net subsidiary has signed a letter of intent with Spain's Plasticos Mondragon, S.A. to provide location, sensing and wireless information solutions for water control and environmental management.

The terms of the letter call for Mondragon to assist in the funding and marketing of specific Digital Angel products designed to fit with Mondragon's existing product lines and markets.

Based in Valencia, Spain, Plasticos Mondragon, S.A. is a privately owned manufacturing concern working in the areas of irrigation systems, railways, telecommunications, and automotive products. With an operating history of 40 years, Mondragon exports and markets on a global basis.

Applied Digital also announced that it would be re-aligning its Signature Industries, Ltd. U.K. subsidiary under the direction and control of Digital Angel.net, Inc.

In a statement, Mercedes Walton explained the letter of intent: "We began discussion with Mondragon after their attendance at the Digital Angel presentation in October of last year and have been very excited about this proposed alliance. The areas we will be working on with Mondragon will move Digital Angel into markets that highlight the versatility of this technology. At their request, we will be providing technical specifics later this week and would expect to formalize this relationship shortly thereafter. Mondragon's 40 year history, industry contacts and market penetration make this a very strategic alliance."

Ms. Walton also commented on other recent European developments: "Our ability to fully deploy Digital Angel on a global basis in each of the vertical markets we have identified requires us to have a greater physical presence than just our existing facilities in Happauge, NY and Riverside, CA. The alignment of Signature Industries, whose team has proven successful in tapping into the key Digital Angel markets of military and intelligence safety, creates a base of operations in Europe and allows us to build greater market awareness in Europe. Other European initiatives, including recently acquired Transatlantic Systems, the alignment of Signature Industries under Digital Angel.net, on-going discussions with a major U.K. retailer, discussions with German-based BITKOM member Blue Impact, and now, Mondragon, have created significant European beachheads for the deployment of our Intelligent Integrated Information Systems Platform on a global basis. The need for secure, timely, and accessible information transcends all industry lines, market segments and geographic borders."

About Digital Angel

In December of 1999, Applied Digital Solutions announced that it had acquired the patent rights to a miniature digital transceiver -- which it has named Digital Angel. Digital Angel represents the first-ever operational combination of advanced sensor technology and Web-enabled wireless telecommunications linked to GPS systems. The company believes this technology will enable it to tap into a multi-billion dollar marketplace with a number of applications that will prove to be extremely popular. Potential applications include: medical and location monitoring for at-risk patients; emergency location of lost or missing children; finding lost or missing household pets; managing livestock and other farm-related animals; pinpointing the location of valuable stolen property; and managing the commodity supply chain. Digital Angel data is transmitted wirelessly, on a real time basis, to an Internet-integrated ground station and made available on a Web-enabled desktop, laptop or wireless device. A new Digital Angel wristband device will be unveiled at Cyberposium at Harvard Business School on February 10, 2001. For more information about Digital Angel, visit http://www.digitalangel.net .

About Applied Digital Solutions, Inc.

Applied Digital Solutions is a leading, single-source provider of e-business solutions. The company grew revenues a remarkable 14,315 percent over the past four years. In recognition of its strong growth record, the company has been ranked in the top tier of the fastest growing technology companies in the "Technology Fast 500" listing compiled annually by Deloitte & Touche. With a ranking of 27 in the listing for the year 2000, Applied Digital was ranked in the Top Ten of the Fast 500 in two of the past four years. 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.