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Applied digital pays ibm debt { June 30 2003 } Original Source Link: (May no longer be active)    http://quote.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=ADSX:US&sid=aGdNFkCDmX4g http://quote.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=ADSX:US&sid=aGdNFkCDmX4g ADSX:US Applied Digital Solutions Inc More on ADSX:US NewsDetailed QuoteCharts Applied Digital Solutions Makes $30 Million Payment to IBM Credit, LLC, Satisfying All Outstanding Debt Obligations to IBM Business Editors PALM BEACH, Fla.--(BUSINESS WIRE)--June 30, 2003-- Payment Improves the Company's Cash Flow and Liquidity - Strengthens Net Worth and Shareholder Equity on Balance Sheet Applied Digital Solutions, Inc. (Nasdaq: ADSX - News) an advanced technology development company, announced today that it has made a $30 million payment to IBM Credit, LLC, the Company's former senior secured creditor. Under the Forbearance Agreement with IBM Credit (announced on March 27, 2003), the Company had the right to purchase all of its debt of approximately $95 million (including accrued interest) with a payment of $30 million by June 30, 2003. This $30 million payment, which was finalized today, satisfies in full the Company's debt obligations to IBM. In 2002, Applied Digital Solutions and Digital Angel Corporation (AMEX: DOC), which is majority owned by the Company, reported consolidated revenues of $99.6 million. The payment to IBM Credit increases the Company's cash flow and liquidity. With this payment, the Company has also significantly strengthened shareholder equity on its balance sheet, increased its net worth, and eliminated the negative cash flow for IBM debt payments. The Company also expects to recognize a gain from the settlement of the IBM debt. Simultaneous with the $30 million payment, the Company completed a $10.5 million, 8.5% convertible debenture transaction with an investor group. The investors can convert the debentures into shares of ADSX's common stock (subject, in part, to shareholder approval) or shares of common stock the Company already owns in Digital Angel Corporation. The fixed-price conversion feature represents a 5.0% premium based on current ADSX market prices, subject to dilution provisions. Subject to certain conditions, the regular interest (8.5% per annum) and amortization payments for the 29-month debentures (due June 29, 2006) may be made (at the Company's option) in cash or the shares the Company owns in DOC. In addition, ADSX has granted warrants to the investors that are exercisable for approximately 5.35 million shares of ADSX's common stock, or 950,000 of the shares the Company owns in DOC, or a combination of shares from both companies. The exercise prices represent a 15% premium based upon current market prices, subject to dilution provisions. The warrants vest immediately and expire in June 2007. "This IBM payment represents an important turning point for Applied Digital," commented Scott R. Silverman, Chairman and CEO. "In the most recent shareholder conference call and in our 2002 annual report, I referred to satisfaction of our debt obligations to IBM Credit as the first pillar of the Company's foundation for the future. Now that we have strengthened our capital structure, our priorities are to build on this foundation by achieving cash flow positive operating results and revenue growth through sales of our personal safeguard technologies, particularly Digital Angel(TM) and VeriChip(TM)." 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 owns a majority position in Digital Angel Corporation (AMEX: DOC). For more information, visit the Company's website at http://www.adsx.com . About VeriChip(TM) VeriChip is a subdermal, radio frequency identification (RFID) device that can be used in a variety of security, financial, emergency identification and other applications. About the size of a grain of rice, each VeriChip product contains a unique verification number that is captured by briefly passing a proprietary scanner over the VeriChip. A small amount of radio frequency energy passes from the scanner energizing the dormant VeriChip, which then emits a radio frequency signal transmitting the verification number. In October 2002, the US Food and Drug Administration (FDA) ruled that VeriChip is not a regulated device with regard to its security, financial, personal identification/safety applications but that VeriChip's healthcare information applications are regulated by the FDA. VeriChip Corporation is a wholly owned subsidiary of Applied Digital Solutions (Nasdaq: ADSX). For more information about VeriChip, visit www.adsx.com. About Digital Angel Corporation On March 27, 2002, Digital Angel Corporation completed a merger with Medical Advisory Systems, Inc., which for two decades has operated a 24/7, physician-staffed response center in Owings, Maryland. Prior to the merger, Digital Angel Corporation was a 93% owned subsidiary of Applied Digital Solutions, Inc. (Nasdaq: ADSX - News), which now is the majority owner of the company. Digital Angel(TM) technology represents the first-ever combination of advanced sensors and Web-enabled wireless telecommunications linked to Global Positioning Systems (GPS). By utilizing advanced sensor capabilities, Digital Angel is able to monitor key functions -- such as ambient temperature and physical movement -- and transmit that data, along with accurate emergency location information, to a ground station or monitoring facility. The company also invented, manufactures and markets implantable identification microchips the size of a grain of rice for use in humans, companion pets, fish, and livestock. Digital Angel Corp. owns the patents for its inventions in all applications of the implantable microchip technology for humans and animals. For more information about Digital Angel Corp., visit www.DigitalAngelCorp.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. Last Updated: June 30, 2003 15:09 EDT

14implant.583 [jpg] Agreements russia colombia venezuela { July 23 2003 } All brits to be chipped in decade American passports to get chipped Animal shelter will give microchips Applied digital 2700 sales Applied digital faces nasdaq delisting { October 28 2003 } Applied digital pays ibm debt { June 30 2003 } British sex offenders chipped { November 17 2002 } Cars gps tracked for tax by mile in oregon Chip americans { November 15 2002 } Chip fda { April 5 2002 } Chip implant Chip implants cause tumors { September 9 2007 } Chip installed { May 9 2002 } Chip rollout in mexico Chips now implant { May 11 2002 } Chips Consumers pay for merchandise using microchips under skin Fda approves human chip { October 13 2004 } Fda approves impanted devices to treat psychiatric disorder { June 16 2004 } Fda warns ad German court issues arrest warrants for 13 cia agents { January 31 2007 } Get chipped charge without plasic you are the card Get chipped Human chips skin deep { August 23 2004 } Identify badge worn under skin approved { October 14 2004 } Implant chip fda { April 5 2002 } Jails using radio tags on inmates wrists { May 15 2005 } Japan plans gps tracking for kids { October 2 2003 } Japan schoolkids tagged with RFID chips { July 12 2004 } Little girl { September 3 2002 } Mexican judicial workers get chipped Microchip implants raise privacy concerns { June 2007 } New york first subdermal verichip { September 24 2003 } Paedophiles tracked satellite tags { September 21 2003 } Prisoners wearing gps tracking devices RDIF implanted in the hand by enthusiasts Subdermal gps device { May 13 2003 } Tracking keys pets kids Under skin chips to be used in hospitals { July 27 2004 } Verichip media { May 7 2002 } Wal mart idea to track products chip { July 18 2003 } Files Listed: 43

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