http://biz.yahoo.com/bw/011219/190064_1.html

Wednesday December 19, 8:06 am Eastern Time

Press Release

SOURCE: Applied Digital Solutions

Applied Digital Solutions Introduces Verichip,
a Miniaturized, Implantable Identification
Device With a Variety of Medical,
Security and Emergency Applications

PALM BEACH, Fla.--(BUSINESS WIRE)--Dec. 19, 2001
--Applied Digital Solutions, Inc. (Nasdaq: ADSX 
- news), an advanced digital technology
development company, announced today that it has
developed a miniaturized, implantable identification
chip -- called VeriChip(TM) -- 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(TM) and Thermo Life(TM) 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(TM) 

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(TM) 

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(TM), 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.