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ADSXPALM BEACH, Fla., Jan 24, 2002 (BUSINESS WIRE) Applied Digital Solutions, Inc. (Nasdaq: ADSX) an advanced digital technology development company, today announced that it has entered into its first Latin American Remarketing Agreement for VeriChip(TM) and other Applied Digital Solutions' products.

The remarketer has received the "first right to market" for VeriChip and other Applied Digital products in three Latin American countries. Initial orders exceed $300,000 and it is anticipated that first year revenue will approach $2 million.

"We have received an overwhelming interest in VeriChip worldwide," stated Richard J. Sullivan, Chairman and CEO of Applied Digital. "The demand for products that add safety and security to everyday life is particularly strong in Latin America as a result of its political, economic, and social climate. Even before the recent extensive media coverage, we had been receiving dozens of inquiries and unsolicited offers to distribute our products in Latin America. In the past few weeks, the interest has grown exponentially. We selected this first Latin American distributor from dozens of suitors after careful due diligence revealed their financial stability, proven track record, and longstanding reputation with local government and corporate leaders."

How VeriChip Works

VeriChip is an implantable 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 datastorage 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.