Exhibit 99.1


FOR IMMEDIATE RELEASE:
- ----------------------

INVESTOR CONTACT                                     MEDIA CONTACT
- ----------------                                     -------------
LORI ALEXANDER                                       MATTHEW COSSOLOTTO
PHONE:  561-805-8013                                 PHONE:  914-245-9721
investor@adsx.com                                    matthew@ovations.com


                      APPLIED DIGITAL SOLUTIONS SETTLES
                            CLASS ACTION LAWSUIT

PALM BEACH, FL - MARCH 10, 2003 - APPLIED DIGITAL SOLUTIONS, INC. (NASDAQ:
ADSX), an advanced technology development company, announced today that it
has reached a memorandum of understanding to settle the pending and
consolidated shareholder class action lawsuit. The settlement involved no
admission of "liability" and will be entirely covered by proceeds from
insurance. The settlement is subject to various conditions, including court
approvals and approval of a special litigation committee of the Company's
Board of Directors.


ABOUT APPLIED DIGITAL SOLUTIONS, INC.
On March 6, 2003, the Company filed a 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.

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 last week, IBM required
payment of approximately $46.2 million by March 6, 2003. The Company did not
make that payment. On March 7, 2003, the Company received a letter from IBM
declaring the loan in default and indicating that IBM would exercise any
and/or all of its remedies. If IBM were to do so, there would be doubt that
the Company would be able 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.

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.

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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