Chairman reflects on ďastoundingĒ media coverage about VeriChip since original announcement on December 19, 2001

PALM BEACH, FL - - January 9, 2002 - - Applied Digital Solutions, Inc. (Nasdaq: ADSX) today announced that VeriChip Ė a miniaturized, implantable identification chip that can be used in a variety of medical, security and emergency applications Ė will be featured on CNNís American Morning with Paula Zahn on January 10, 2002.

Since it was first announced on December 19, 2001, VeriChip has been covered by a range of major newspapers, television news programs, and wire services, including NBCís Today Show, the Washington Post, the Los Angeles Times, the Chicago Tribune, Reuters, Associated Press, CNN-Financial News, CBS Radio, National Public Radio, BBC radio, Tech TV, the Toronto Star, among many others. In addition, a number of major media outlets are expected to carry stories about VeriChip in the near future, including CBS Weekend Evening News, the New York Times and National Geographic Magazine.

ďThe amount and quality of media coverage about VeriChip has been astounding,Ē commented Applied Digital Solutionsí Chairman and CEO, Richard J. Sullivan. ďWe expected a great deal of interest, but weíve been pleasantly surprised with the overwhelming excitement on the part of the media and general public. The key thing for us to do Ė and weíre in the process of doing it right now Ė is to translate the enormous interest weíve generated into solid business opportunities and revenue. We are in final negotiations with several potential distribution partners for VeriChip both in the United States and Latin America.Ē

Richard J. Sullivan continued: ďIn addition to VeriChip, Digital Angelô continues to receive a high level of interest and customer orders. Unfortunately, because of the pending merger of Digital Angel Corporation and Medical Advisory Systems, Inc., I am unable to comment further due to ďquiet periodĒ standards.

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 (such as name, emergency contact information, allergies to medications), as well as the medical deviceís 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 ďbiometricĒ technologies Ė 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.

About Digital Angelô
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 Ė such as temperature and pulse Ė 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

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

Statements about the Companyís future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts, are Ďforward-looking statementsí 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 Companyís 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.

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