GIVE SATAN A HAND

PALM BEACH, Fla.--(BUSINESS WIRE)--Dec. 15, 1999-- Inserted just under the skin, with maintenance-free regenerating power supply, miniature Digital AngelŪ has multi-billion dollar market potential.

Applied Digital Solutions, Inc. (NASDAQ:ADSX - news) today announced that it has acquired the patent rights to a miniature digital transceiver -- which it has named Digital AngelŪ -- that can be used for a variety of purposes, such as providing a tamper-proof means of identification for enhanced e-business security, locating lost or missing individuals, tracking the location of valuable property and monitoring the medical conditions of at-risk patients.

In the agreement signed last week, ADS acquired the right to develop this unique product itself for all of its applications or to sublicense the development of specific applications to other entities. A special technology group has been formed within ADS to supervise the development of the device.

The implantable transceiver sends and receives data and can be continuously tracked by GPS (Global Positioning Satellite) technology. The transceiver's power supply and actuation system are unlike anything ever created. When implanted within a body, the device is powered electromechanically through the movement of muscles, and it can be activated either by the ``wearer'' or by the monitoring facility. A novel sensation feedback feature will even allow the wearer to control the device to some degree. The ``smart'' device is also small enough to be hidden inconspicuously on or within valuable personal belongings and priceless works of art.

Commenting on Digital Angel'sŪ many potential applications, Richard J. Sullivan, Chairman and CEO of Applied Digital Solutions, Inc. (ADS), said: ``We believe its potential for improving individual and e-business security and enhancing the quality of life for millions of people is virtually limitless. Although we're in the early developmental phase, we expect to come forward with applications in many different areas, from medical monitoring to law enforcement. However, in keeping with our core strengths in the e-business to business arena, we plan to focus our initial development efforts on the growing field of e-commerce security and user ID verification.''

Sullivan added that the multi-purpose technology would enable ADS to tap into a vast global market, through licensing and other commercial arrangements, with an estimated total value in excess of $100 billion. ``The e-business to business security market alone could reach as high as $10 to $12 billion in the near future,'' Sullivan added.