APPLIED DIGITAL SOLUTIONS INTRODUCES VERICHIP™, A MINIATURIZED, IMPLANTABLE IDENTIFICATION DEVICE WITH A VARIETY OF MEDICAL, SECURITY AND EMERGENCY APPLICATIONS

PALM BEACH, FL -- December 19, 2001 - - Applied Digital Solutions, Inc. (Nasdaq: ADSX), an advanced digital technology development company, announced today that it has developed a miniaturized, implantable identification chip -- called VeriChip™ -- that can be used in a variety of medical, security and emergency applications.

How VeriChip Works
VeriChip is an implantable, 12mm by 2.1mm 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’s name and condition 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.

Commenting on the announcement, Richard J. Sullivan, Chairman and CEO of Applied Digital Solutions stated: “With VeriChip, Applied Digital has taken another significant step in developing leading-edge personal security technologies for a rapidly evolving marketplace. VeriChip joins Digital Angel™ and Thermo Life™ in our repertoire of breakthrough technologies. All of these are designed specifically to save lives, enhance personal security and improve quality of life. We’re looking forward to working with the medical community and other potential partners to bring VeriChip to market as quickly as possible.”

About Digital Angel™
Digital Angel represents the first-ever combination of advanced biosensor technology and Web-enabled wireless telecommunications linked to Global Positioning Systems (GPS). By utilizing advanced biosensor capabilities, Digital Angel will be able to monitor key body functions – such as temperature and pulse – and transmit that data, along with accurate location information, to a ground station or monitoring facility. Digital Angel Corporation has announced a proposed merger with Medical Advisory Systems. For more information on Digital Angel, visit www.digitalangel.net.

About Thermo Life™
In November of 2001, Applied Digital Solutions created a wholly owned subsidiary called Advanced Power Solutions, Inc. (APSI). This new unit will further develop, market and license Thermo Life™, a proprietary, thermoelectric generator powered by body heat. Thermo Life is intended to provide a miniaturized power source for a wide range of consumer electronic devices, including attachable or implantable medical devices, wristwatches and other consumer devices. The Company estimates that the potential marketplace for Thermo Life exceeds $30 billion.

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.

Investor Contact   Media Contact
Robert Jackson   Matthew Cossolotto
Phone: 561-805-8042   Phone: 914-245-9721
E-mail: rjackson@adsx.com   E-mail: matthew@ovations.com
   

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Copyright 2000, Applied Digital Solutions Inc.
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