VeriKid(TM) Program Launched

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Solusat, Exclusive Distributor of VeriChip for Mexico, Signs Cooperation Agreement with Mexico's National Foundation for the Investigation of Lost and Kidnapped Children

VeriKid(TM) Program Launched as Part of Emergency Child Identification and Safeguard Initiative

VeriChip Corporation Donates 25 Subdermal RFID Verichips to National Foundation to Kick off Program in Mexico

BUSINESS WIRE
October 01, 2003  09:20 AM US Eastern Timezone
 
PALM BEACH, Fla. -- Applied Digital Solutions, Inc. (Nasdaq: ADSX), an advanced technology development company, announced today that Solusat, the Company's exclusive distributor of VeriChip(TM) products and services in Mexico, has signed a cooperation agreement with Mexico's National Foundation for the Investigation of Lost and Kidnapped Children (Fundacion Nacional de Investigaciones de Ninos Robados y Desaparecidos).
 
As part of this initiative, Solusat is launching a new VeriKid(TM) program to provide an emergency identification component to the overall child safeguard effort in Mexico.
 
VeriChip Corporation, Applied Digital Solutions' wholly owned subsidiary, is signaling its strong support for this initiative by donating 25 VeriChips to the National Foundation to assist in kicking off this exciting child safeguard program in Mexico.
 
About the size of a grain of rice, VeriChip is the world's first subdermal, radio frequency identification (RFID) microchip that can be used in a variety of security, financial, emergency identification and other applications.
 
The cooperation agreement means that Solusat and the National Foundation will work together on a range of child-safeguard projects in Mexico. With the launch of VeriKid, Mexico becomes the first country in the world to offer VeriChip's new VeriKid system designed to provide a secure emergency identification system for lost, missing and kidnapped children. It is expected that the VeriKid application will soon become available in other countries, including the United States, after its introduction in Mexico.
 
According to the National Foundation, approximately 133,000 Mexican children disappeared over the last five years for reasons ranging from abduction, illegal organ trafficking and family problems. Roughly one thousand of these children are estimated to be victims of kidnapping.
 
Solusat will work with the National Foundation to develop a program for the distribution of VeriChip scanners to police stations, hospitals and other strategic locations to help with the emergency child identification initiative. The following projects are envisioned by Solusat as it works in coordination with the National Foundation:
 
-- A program to promote VeriKid safeguard solutions in schools;
 
-- A community-based control and security program involving supermarkets, airports, bus stations and other entities that would connect with the VeriKid program;
 
-- A fundraising program to generate financial support for the National Foundation's various projects to safeguard children in Mexico. It is also expected that Solusat will contribute a certain percentage of VeriKid sales in Mexico to the Foundation.
 
About the National Foundation for the Investigation of Lost and Kidnapped Children
 
Founded in 1997, the National Foundation is a private, non-profit organization that works closely with Mexican police and other government agencies to locate missing children, provide family assistance, and establish child-safety-related educational and other preventive programs in schools throughout Mexico. For more information about the Foundation, visit http://www.ninosrobadosyexplotados.org.mx/index.htm
 
About SOLUSAT
 
Soluciones de Localizacion Satelital, S. de R.L. de C.V. (SOLUSAT), founded in October 2002, is the exclusive marketer and distributor for VeriChip products and services in Mexico. In July 2003, Solusat launched SOLUSAT MEDICA, a special division designed to promote the many healthcare-related applications of VeriChip in Mexico. Antonio Aceves, Director General of SOLUSAT, can be reached by telephone (52 55 5239-5494). For more information about SOLUSAT and SOLUSAT MEDICA, email questions to http://www.solusat.com.mx.
 
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. The standard location of the microchip is in the triceps area between the elbow and the shoulder of the right arm. The brief outpatient "chipping" procedure lasts just a few minutes and involves only local anesthetic followed by quick, painless insertion of the VeriChip. Once inserted just under the skin, the VeriChip is inconspicuous to the naked eye. 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 http://www.adsx.com.
 
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