--	Applied Agrees to Buy Three Million Shares of Digital Angel Corporation
--	Scott R. Silverman, Applied Digital CEO, joins Digital Angel Corporation's Board of Directors

    Applied Digital Solutions, Inc. (Nasdaq: ADSX) an advanced technology development company, announced today that it has agreed to purchase three million additional shares in Digital Angel Corporation (Amex: DOC). After the purchase is completed, Applied Digital Solutions ("Applied") will own more than 22 million shares (roughly 76 percent) of DOC. As part of the purchase, DOC would grant to the Company a warrant to purchase an additional one million shares.

    In making the announcement, Scott R. Silverman, Chairman and CEO, said that "the additional investment reflects Applied's belief that DOC is greatly undervalued at the present time. Digital Angel Corporation has a strong product mix and innovative technologies that make this investment extremely attractive."

    The Company also announced that Mr. Silverman has joined DOC's Board of Directors. An additional independent Director of DOC will be nominated by Applied.

    Commenting on these developments, Mr. Silverman stated:

    "With our additional investment in DOC, Applied Digital shareholders should begin to realize the increased flexibility the Company now has after fully satisfying our debt obligations to IBM Credit. Our business model is underpinned by our innovative personal safeguard technologies, including Digital Angel(TM), VeriChip(TM) and Thermo Life(TM). When mature, each technology will be paired with a complementary operating company that brings a revenue base and a proven management team.

    "The Digital Angel GPS product was Applied's first personal safeguard technology. Several years ago, we purchased Destron Fearing Corporation, a leader in animal identification technologies, including an implantable RFID microchip for pets, livestock and wildlife. Destron's technologies and capabilities complement the Digital Angel product. The end result is Digital Angel Corporation -- a Company built on first-of-its-kind technology and strengthened by complementary products. As the Digital Angel product adapts to changing wireless protocol and assisted GPS capabilities, it is our belief that its market presence will continue to grow. This growth, coupled with leading animal applications technologies that produce consistent revenue streams, should translate into increased long-term shareholder value.

    "All of the moves announced today demonstrate that Applied Digital is fully committed not only to increasing our strategic investment in DOC, but also to maximizing that investment for the benefit of ADSX and DOC shareholders. I believe this additional strategic investment will prove to be a significant win-win for long-term investors in both companies."

    About Digital Angel Corporation

    On March 27, 2002, Digital Angel Corporation completed a merger with Medical Advisory Systems, Inc., which for two decades has operated a 24/7, physician-staffed response center in Owings, Maryland. Prior to the merger, Digital Angel Corporation was a 93% owned subsidiary of Applied Digital Solutions, Inc. (Nasdaq: ADSX - News), which now is the majority owner of the company. Digital Angel(TM) technology represents the first-ever combination of advanced sensors and Web-enabled wireless telecommunications linked to Global Positioning Systems (GPS). By utilizing advanced sensor capabilities, Digital Angel is able to monitor key functions -- such as ambient temperature and physical movement -- and transmit that data, along with accurate emergency location information, to a ground station or monitoring facility. The company also invented, manufactures and markets implantable identification microchips the size of a grain of rice for use in humans, companion pets, fish, and livestock. Digital Angel Corp. owns the patents for its inventions in all applications of the implantable microchip technology for humans and animals. For more information about Digital Angel Corp., visit www.DigitalAngelCorp.com.

    About VeriChip(TM)

    VeriChip is a subdermal, radio frequency identification (RFID) device that can be used in a variety of security, financial, emergency identification and other applications. About the size of a grain of rice, each VeriChip product contains a unique verification number that is captured by briefly passing a proprietary scanner over the VeriChip. A small amount of radio frequency energy passes from the scanner energizing the dormant VeriChip, which then emits a radio frequency signal transmitting the verification number. In October 2002, the US Food and Drug Administration (FDA) ruled that VeriChip is not a regulated device with regard to its security, financial, personal identification/safety applications but that VeriChip's healthcare information applications are regulated by the FDA. VeriChip Corporation is a wholly owned subsidiary of Applied Digital Solutions (Nasdaq: ADSX). For more information about VeriChip, visit www.adsx.com.

    About Thermo Life(TM)

    Thermo Life is a miniaturized, thermoelectric generator powered by body heat. On July 9, 2002, the Company announced that it had achieved an important breakthrough: 3.0-volts of electrical power successfully generated by Thermo Life in laboratory tests. The Company believes Thermo Life technology has a wide variety of potential uses, including the powering of various electronic devices, wristwatches, medical devices, smoke detectors and other heat-related sensors. If Thermo Life performs as expected in commercial applications, this technology could effectively eliminate the need to periodically replace the power source of these devices. Thermo Life technology can also provide an independent, heat-generated power source for security related sensors. Thermo Life Energy Corporation is a wholly owned subsidiary of Applied Digital Solutions.

    About Applied Digital Solutions, Inc.

    Applied Digital Solutions is an advanced technology development company that focuses on a range of life-enhancing, personal safeguard technologies, early warning alert systems, miniaturized power sources and security monitoring systems combined with the comprehensive data management services required to support them. Through its Advanced Technology Group, 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. Applied Digital Solutions owns a majority position in Digital Angel Corporation (AMEX: DOC). 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.

--30--JC/ch* CONTACT: Investor Contact: CEOcast, Inc. Ken Sgro, 212-732-4300 kensgro@ceocast.com or Media CONTACT: Ovations International, Inc. Matthew Cossolotto, 914-245-9721 matthew@ovations.com KEYWORD: FLORIDA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS PRODUCT SOURCE: Applied Digital Solutions