Exhibit 99.1
                        [Applied Digital Solutions Logo]


FOR IMMEDIATE RELEASE:
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INVESTOR CONTACT                                      MEDIA CONTACT
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LORI ALEXANDER                                        MATTHEW COSSOLOTTO
PHONE: 561-805-8013                                   PHONE: 914-245-9721
investor@adsx.com                                     matthew@ovations.com
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            APPLIED DIGITAL SOLUTIONS, INC. FILES LAWSUIT AGAINST IBM
                         CREDIT LLC AND IBM CORPORATION

      ACCORDING TO THE LAWSUIT, THE CAUSES OF ACTION INCLUDE: TORTIOUS
       INTERFERENCE WITH BUSINESS RELATIONSHIPS; CONSPIRACY TO COMMIT
   FRAUD/CIVIL RICO; FRAUD, BREACH OF GOOD FAITH AND FAIR DEALING; LENDER
 LIABILITY; AND BREACH OF THE FLORIDA UNIFORM TRADE SECRETS PROTECTION ACT


PALM BEACH, FL - MARCH 07, 2003 - APPLIED DIGITAL SOLUTIONS, INC. (NASDAQ:
ADSX), an advanced technology development company, announced today that it
has filed a lawsuit against IBM Credit LLC and IBM Corporation (NYSE: IBM).
According to the lawsuit, the causes of action include: tortious
interference with business relationships; conspiracy to commit fraud/civil
RICO; fraud, breach of good faith and fair dealing; lender liability; and
breach of the Florida Uniform Trade Secrets Protection Act. The lawsuit was
filed yesterday in Palm Beach County, FL.

IBM Credit has been the Company's lender since 1999. Under the terms of the IBM
credit agreement and a letter sent by IBM Credit earlier this week, IBM required
payment of approximately $46.2 million by March 6, 2003. The Company did not
make that payment, which, depending on the response from IBM Credit, may impair
the Company's ability to carry on business in the ordinary course. The lawsuit
follows a good faith attempt by the Company to negotiate a satisfactory
amendment to the credit agreement. The Company believes that its offers in those
negotiations were not accepted, in large part, for the reasons set forth in the
lawsuit.

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 is the
beneficial owner of a






majority position in Digital Angel Corporation (AMEX: DOC). For more
information, visit the Company's website at http://www.adsx.com.
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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.
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.

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