Applied Digital Receives Notice Related to Nasdaq's Minimum Bid Price Rule

Company has Approximately One Year to Regain Compliance, Provided
It Continues to Meet Other Listing Requirements
DELRAY BEACH, Fla.--(Business Wire)--Applied Digital Solutions, Inc. (the "Company") (NASDAQ:ADSX), a
leading provider of identification and security technology, today
announced that, on December 6, 2007, it received notice from The
Nasdaq Stock Market that the minimum bid price of the Company's common
stock closed below $1.00 per share for 30 consecutive business days
and that Applied Digital was therefore not in compliance with Nasdaq
Marketplace Rule 4310(c)(4) ("the Rule"). In accordance with
Marketplace Rule 4310(c)(8)(D), Applied Digital has 180 calendar days,
or until June 2, 2008, to regain compliance. If, at anytime before
June 2, 2008, the bid price of the Company's common stock closes at
$1.00 per share or more for at least 10 consecutive business days,
Nasdaq will provide written notification that the Company complies
with the Rule.

If compliance is not achieved by June 2, 2008, Applied Digital
will be eligible for an additional compliance period of 180 days
provided it continues to meet The Nasdaq Capital Market initial
listing criteria as set forth in Marketplace Rule 4310(c), except for
the bid price requirement. Currently, except for the bid price
requirement, the Company meets the Nasdaq Capital Market initial
listing criteria set forth in Marketplace Rule 4310(c). If the Company
is not eligible for an additional compliance period, Nasdaq will
provide written notification that the Company's securities will be
delisted. At that time, Applied Digital may appeal Nasdaq's
determination that the Company's common stock will be delisted from
The Nasdaq Stock Market.

About Applied Digital - "The Power of Identification Technology"

Applied Digital develops innovative identification and security
products for consumer, commercial, and government sectors worldwide.
Applied Digital's unique and often proprietary products provide
identification and security systems for people, animals, the food
supply, government/military arena, and commercial assets. Included in
this diversified product line are RFID applications, end-to-end food
safety systems, GPS/Satellite communications, and telecomm and
security infrastructure, positioning Applied Digital as the leader in
identification technology. Applied Digital is the owner of majority
positions in Digital Angel Corporation (AMEX:DOC) and VeriChip
Corporation (NASDAQ:CHIP).

Statements about Applied Digital's future expectations, including
its ability to meet the Nasdaq's initial listing criteria as set forth
in Marketplace Rule 4310(c), 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 Applied Digital's actual results
could differ materially from expected results. The most important
factors that could prevent Applied Digital from achieving its goals,
and cause the assumptions underlying forward-looking statements and
the actual results to differ materially from those expressed in or
implied by those forward-looking statements include, but are not
limited to, the risk factors set forth in the Joint Proxy
Statement/Prospectus and Applied Digital's annual and quarterly
reports. Applied Digital undertakes no obligation to update
forward-looking statements to reflect subsequently occurring events or
circumstances.

Applied Digital Solutions, Inc., Delray Beach
Allison Tomek, 561-805-8000
atomek@adsx.com

Copyright Business Wire 2007