## Implants - Now a Marketing Reality

### Digital Angel®

> Implants - Now a Marketing Reality

> Company Press Release

> Applied Digital Solutions Acquires Rights to World's First Digital Device Implantable in Humans - With Applications in E-business to Business Security, Health Care and Criminal Justice

> PALM BEACH, Fla.--(BUSINESS WIRE)--Dec. 15, 1999-- Inserted just under the skin, with maintenance-free regenerating power supply, miniature 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 Angel®'' -- 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 ntities. 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's® 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.

> ADS is actively seeking joint venture partners to help develop and market the unique technology. The company expects to create a working prototype by the end of next year.

> Applied Digital Solutions, Inc. is an e-business to business solutions provider offering Internet, telecom, LAN and software services to a wide variety of businesses throughout North America. 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.

> BACKGROUND AND TECHNICAL ABSTRACT

> Digital Angel®