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Applied Digital Solutions, Inc.: Key Developments

Financial News

Press Release    Source: Applied Digital Solutions, Inc.                        
Applications Continue to Grow for Applied Digital Solutions' VeriPay
Monday April 5, 9:20 am ET     
Baja Beach Club in Barcelona, Spain Employs RFID Technology for Cashless Payment System
PALM BEACH, Fla--(BUSINESS WIRE)--April 5, 2004--Applied Digital Solutions, Inc. (Nasdaq: ADSXD - News), an advanced technology development company, today announced that Baja Beach Clubs International had employed the VeriPay System, developed by Applied Digital's VeriChip Corporation, at a night club in Spain.
Launched at a global security conference in November, 2003, the VeriPay System is a new syringe-injectable microchip implant for humans, designed to be used as a fraud-proof payment method for cash and credit-card transactions. The chip implant is an advance over credit cards and smart cards, which, absent biometrics and appropriate safeguard technologies, are subject to theft, resulting in identity fraud.
"We are the only company today offering human implantable ID technology," said Scott R. Silverman, Chairman and Chief Executive Officer of Applied Digital Solutions. "We believe the market opportunity for this technology is substantial, and high-profile successes such as in Spain will serve as catalysts for broader adoption."
"The VeriPay chipping event was a huge success," said Conrad K. Chase, Director of the Baja Beach Clubs International. "Everyone embraced the electronic payment application. My customers like the fact that they do not have to carry a credit card or ID card with them. With the VeriPay system, they no longer have to worry about their credit cards getting lost or stolen."
About Applied Digital Solutions, Inc.
Applied Digital Solutions is an advanced technology development company that focuses on a range of early warning alert, miniaturized power sources and security monitoring systems combined with the comprehensive data management services required to support them. Through its Advanced Wireless unit, 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. For more information, visit the company's website at
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.

A Mexican company has launched a service to implant microchips in children as an anti-kidnapping device.
Solusat, the Mexican distributor of the VeriChip -- a rice-size microchip that is injected beneath the skin and transmits a 125-kilohertz radio frequency signal -- is marketing the device as an emergency ID under its new VeriKid program.
The service has even garnered the backing of Mexico's National Foundation of Investigations of Robbed and Missing Children, which has agreed to promote the service.
According to a press release announcing the collaboration, the foundation has estimated that 133,000 Mexican children have been abducted over the past five years.
Foundation officials did not respond to interview requests.
A Solusat executive said the terms of the agreement are still being hashed out.
"There are distinct projects on the table, but one form of finding (children) is by putting scanners in strategic locations where a search is being conducted for a VeriKid that has been reported missing," said Carlos Altamirano, Solusat's associate general director.
The company envisions placing walk-through scanners -- similar to metal-detector portals used in airports -- in malls, bus stations and other areas where a missing child may appear. The chip also could be used to identify children who are found unconscious, drugged, dead or too young to identify themselves.
Critics said kidnappers could circumvent the device easily.
"My big concern is that kidnappers will simply use 'high-tech' tools like knives to get rid of them," said Lauren Weinstein, creator of the Privacy Forum, an online digest related to privacy and technology issues.
The Electronic Privacy Information Center also has warned that inserting a type of LoJack into children and workers to track their movements could violate their civil liberties.
Solusat began selling VeriChip -- which is similar to the biochips used to track cattle and lost pets -- in Mexico in July; it's been sold in the United States since October 2002.
The VeriChip is injected under the skin of the upper arm or hip in an outpatient procedure. A special scanner reads the RF signal emitted by the microchip to obtain the device's ID number, which then is entered into a database to access personal data about the individual. Other potential uses of the chip, according to company officials, include scanning unconscious patients to obtain their medical records or restricting access to high-security buildings by scanning workers to verify their clearance.
In Mexico, the cost of the VeriChip and the doctor's fee for implantation is about $200, in addition to a $50 annual fee to maintain the database. The handheld scanner costs an additional $1,200, Altamirano said. The company refused to disclose the price of the portal scanners.
VeriChip manufacturer Applied Digital Solutions said it plans to roll out the VeriKid service in other countries, including the United States, in the future.
" The objective of this technology is to bring an ID system to a global level that will destroy the need to carry ID documents and credit cards," Chase said.
During a recent American radio interview, Chase said the CEO of VeriChip, Dr. Keith Bolton, had told him that the company's goal was to market the VeriChip as a global implantable identification system."


Stephan Fuchs, Switzerland

The Implantable Chip Comes To Switzerland

Applied Digital Solutions, a high-tech company from Palm Beach, USA, announced in a press release on November 10th 2003 that their daughter company Verichip Corporation received an order for 400 implantable chips and 34 scanners. Buyer is the swiss-russian enterprise RussGPS that has an exclusive licence to sell the implantable chip in Switzerland and Russia.

Verichip is the first implantable micro chip in the form of a rice corn that is accessible to the wider public. After Mexico, Argentine, Brazil, Chile, Paraguay, Uruguay and Spain, and after a broad advertisement tour in North America, the marketing of Verichip will now take place in Switzerland and Russia as well. In South America alone, some 135,000 chips and 7,650 Scanners will be distributed in the next four years. The Metro Risk Management Group (Miami, USA) is serving the markets in these countries. The company was set up in 1998 by security experts from CIA and FBI, and is specialized in anti-terrorism actions, freeing hostages and surveillance.
The Swiss partner for Verichip is RussGPS, a daughter of The company is a joint venture of Russian investors and the Swiss internet service provider SwissWeb GmbH in Zurich. RussGPS has offices in Moscow and Zurich and is specialized in locating vehicles and persons. In a first tranche, RussGPS obliged to buying 1000 implantable chips and 100 scanners. The deal includes that RussGPS has to buy at least 51,000 chips and 2,600 scanners in the next five years to keep the exclusive marketing licence for the Swiss and Russian market. RussGPS plans to use Verichip mainly for security and identification.The technology itself is not new. Already for a while now, chips are implanted into cows, cats and dogs, but the implantable into humans frightens a lot of people. Already in 1999, the company Applied Digital Solutions ADS came with a product called "Digital Angel". It was announced as a chip that could be implanted under the skin of a person for numerous purposes. According to ADS, the primary use would have been for e-commerce, because every user would be able to prove his identity with such a chip, and would be able to be located by the satellite-location system GPS. GPS was built for military purposes but is used for civilian purposes as well. Richard Sullivan, director of the company, prophesied himself and the astonished media representatives a market of 100 billion dollars in North America alone.
ADS head of development Peter Zhou compared "Digital Angel" with a vaccination: "Both save your live. When vaccinations were introduced, most people opposed them. But now we don't even think about them." Zhou went as far as stating that "Digital Angel" would become the connection between humans and the electronic world: "He will be your guardian. We will be hybrids between electronical intelligence and our own soul."

Zhou was too euphoric. The chip that was meant to go under the skin met harsh criticism.
Under the loud protest of different public-rights and Christian groups, ADS had to put the "Digital Angel" back in the drawer. The company suddenly demented, that they ever seriously had been thinking about the implementation of the product. In a scaled-down form the "Angel" is now only available as wrist watch on foot chain for children, convicts or people with Alzheimer's.
But now the situation has changed again. Everything seems to be possible now, since citizens' wish to feel safe is boiling over since the terrorist attacks in America, and the management sees new opportunities arise.

Verichip is a micro chip encased with glass. It has the form or a rice grain: 12 millimetres long and 2.1 millimetres in diameter, and can be implemented under the skin. It can be loaded with an alpha-numeric identification code for the reliable identification of the carrier and with life-saving information, which allows doctors in the case of an accident fast and the correct help. One first thought the police in New York City, the military staff and all others who want to get a bigger feeling of security with Verichip and who would be willing to get the chip implemented. The procedure is done ambulant. A small prick and a band aid and the implant is ready and of course it is done voluntarily.

The Verichip does not need internal, chip- integrated energy because it can be read as soon as it is recognised by a scanner that displays the undeletable identification code on scanner display ... just as in the supermarket.

Verichip is manufactured by Raytheon Microelectronics España S.A., a daughter of one of the world's largest arms company, Raytheon. Two thirds of the turn-over stems from deals with the National Security Agency NSA and the US Ministry of Defence.

China plans 1 Billion digital chip ID cards -- August 12, 2003
received from Stephan Fuchs of International Oracle Syndicate
China is about to embark on the world's biggest experiment in the use of electronic identification cards, which next year will begin to replace the paper national ID cards carried by 960 million Chinese citizens.
The core of the new ID cards is an embedded microchip storing an individual's personal information, which can be read electronically and checked against databases kept by China's security authorities. Residents of most major cities also will carry other chip-based cards that control access to social services. .........
Song Gongde, a legal expert at the National School of Administration in Beijing, says he was encouraged by a provision in China's ID law, passed in June, that strictly limits the kinds of data that can be put on the ID card, including name, birth date and the 18-digit citizen ID number.[ Ed. note: social security number plus zip code ? ] But the law doesn't give citizens the right to see or correct their personal information, whether it is stored on a card or elsewhere.
The introduction of the cards will be accompanied by a major upgrade of the security ministry's databases and computer systems, analysts say. China's security forces, which investigate political misdeeds as well as other crimes, have been enthusiastic users of technology -- for instance, to monitor Internet and e-mail traffic -- and face few curbs on how they can use such technology.
"The absence of a counterweight is worrying, especially in China where the legal system is very deficient," said Nicolas Becquelin, the research director for rights group Human Rights in China.

China gets super card
Japanese get 11 digit number card, and fool-proof ONLINE database --- August 2003
Juki Net ID cards
A national computerized ID system that was criticized for its Big Brother overtones when started last year became fully operational yesterday, allowing Japan's 126 million citizens to cut through red tape with an 11-digit number.
The online database, which contains every citizen's name, address, birth date and sex, is the centerpiece of a government initiative to speed up administrative procedures such as filing change-of-address forms and applying for passports.

INDIA : 1 billion to get Smart Chip card; multiple purpose ID -- Aug 26, 2003
Advani card
"Observing that the centre is seriously considering preparing a national register of Indian citizens and issuing to them Multi-purpose National Identity Cards (MNICs), Advani said these would provide a credible individual identification system and also act as a deterrent for future illegal immigration.
"A smart card is basically a card on which a chip has been embedded and which has immense power to store information of different types. As the transactions grow, be it in buying or selling or to help the public interact with the government, the cards can play an important role.

Make up your own mind!