Friday January 26, 11:16 am Eastern Time
Press Release
New Applied Digital's E-business Practice Headquarters in Riverside, Calif. Will House Digital Angel Delivery System, Data Management Center and Software Development Lab
PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 26, 2001--

Life-saving Digital Angel(TM) location and bio-sensor data will be accessible via multiple channels, including Web browsers, Personal Digital Devices (PDAs), WAP-enabled cell phones and telephony contact centers

Local government, university and business leaders will join top Applied Digital executives at opening ceremonies on February 2, 2001

Applied Digital Solutions, Inc. (NASDAQ:ADSX - news), a leading, single-source provider of e-business solutions, today announced that February 2, 2001, has been slated for the grand opening of its new, state-of-the-art eBusiness applications center and software development lab, located in the University Research Park area of the Riverside Regional Technology Park in Southern California.

A number of local government and business officials will attend the opening, along with key members of the University's administration and faculty. Following the opening ceremonies, senior executives of Applied Digital Solutions will host a special tour of the new facilities.

Commenting on the announcement, Applied Digital's President and Chief Operating Officer, Mercedes Walton, said: ``The opening of this new facility is extremely exciting. Riverside County, the City of Riverside and the University of California, Riverside, have created the ultimate location for business development and technological innovation in the new Technology Park. This is an ideal location for developing new eBusiness applications as well as deploying mission critical support for many of Applied Digital's innovative projects, including our breakthrough Digital Angel technology and supporting wireless communications data delivery system. This grand opening will give us the opportunity to demonstrate how Digital Angel's life-saving location and bio-sensor data can be accessed by way of various platforms, including Web browsers, PDAs, WAP-enabled cell phones and even telephone contact centers.''

Applied Digital selected the Technology Park in Riverside because of its prime location and distinctive technological advantages. In the heart of what has become a major center for software technology, the new location links Applied Digital with Riverside City and County resources and the University of California Riverside's prestigious academic and research programs. Moreover, Technology Park offers the unique amenities required by technology-based companies such as Applied Digital Solutions.

The Technology Park facilities are now home to Applied Digital's eBusiness Practice (formerly known as Timely Technology Corporation), which provides innovative e-commerce solutions to a broad range of industries including government, mortgage, insurance and retail organizations. It also offers distance learning solutions tailored to the unique needs of businesses and organizations and is committed to promoting e-commerce through community seminars and its ongoing partnership with UCR Extension. Timely Technology Corporation became a subsidiary of Applied Digital Solutions, Inc. in July 2000.

The new applications center and eBusiness software development lab serve a number of critical roles in Applied Digital's current and future business plans:

Home to the company's Digital Angel ASP delivery system, as well as its west-coast research and development lab for Digital Angel and other advanced wireless, Internet-related technologies.
Hub for a unique, multi-channel web community for marketing and distributing Digital Angel products and services, including a new line of Digital Angel wristband devices and pet-protection applications to be available in the near future.
Center for the development of transportation-related Digital Angel applications.
More About Digital Angel

In December of 1999, Applied Digital Solutions announced that it had acquired the patent rights to a miniature digital transceiver -- which it has named Digital Angel. Digital Angel represents the first-ever operational combination of advanced sensor technology and Web-enabled wireless telecommunications linked to GPS systems. The company believes this technology will enable it to tap into a multi-billion dollar marketplace with a number of applications that will prove to be extremely popular. Potential applications include: medical and location monitoring for at-risk patients; emergency location of lost or missing children; finding lost or missing household pets; managing livestock and other farm-related animals; pinpointing the location of valuable stolen property; and managing the commodity supply chain.

Digital Angel data is transmitted wirelessly, on a real time basis, to an Internet-integrated ground station and made available on a Web-enabled desktop, laptop or wireless device. The new Technology Park facilities will be the primary application center for the entire Digital Angel Delivery System. A new Digital Angel wristband device will be unveiled at Cyberposium at Harvard Business School on February 10, 2001. For more information about Digital Angel, visit www.digitalangel.net .

About Applied Digital Solutions, Inc.

Applied Digital Solutions is a leading, single-source provider of e-business solutions. The company grew revenues a remarkable 14,315 percent over the past four years. In recognition of its strong growth record, the company has been ranked in the top tier of the fastest growing technology companies in the ``Technology Fast 500'' listing compiled annually by Deloitte & Touche. With a ranking of 27 in the listing for the year 2000, Applied Digital was ranked in the Top Ten of the Fast 500 in two of the past four years. 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.

Contact:

Ovations International Inc.

Media Contact, Matthew Cossolotto, 914/245-9721

matthew@ovations.com

or

ADS Investor Relations

Robert Jackson, 561/366-4800; Fax: 561/366-8591

rjackson@adsx.com