ADSX Applied Digital Solutions (MM)

Government Telecommunications, Inc., a subsidiary of Applied Digital (NASDAQ: ADSX), announced today that it has been awarded a General Services Administration (GSA) CONNECTIONS task order to install a video conferencing system for the Federal Air Marshall Service. The initial value of the contract is approximately $900,000 and the system is expected to be complete by the middle of 2006. Rich Patton, President of GTI, commented, "GTI is pleased to be partnering with Wire One Communications to deliver a world class video conferencing system to the Federal Air Marshall Service." Under the terms of this contract GTI and its partner Wire One Communications, Inc. will install a video conference system linking the Federal Marshall Services' headquarters in New Jersey with key stakeholders, including other agencies and its 25 remote offices. "We are proud to be associated with GTI in this endeavor" stated Thomas Volk, Senior Vice President, Federal Sales for Wire One. "This is yet another validation of the expertise and skill the joint team of GTI and Wire One provides. Our combined solution will further strengthen the capabilities of the Federal Air Marshall Service." About Government Telecommunications, Inc. GTI, a wholly-owned subsidiary of Applied Digital, is headquartered in Chantilly, VA. GTI specializes in designing, deploying and maintaining voice, data and telecommunications networks for agencies of the federal government. Key customers include the Departments of Defense, Justice and Agriculture, and the Social Security Administration. For more information on GTI, please visit www.govtel.com. About Wire One Communications, Inc. Wire One Communications delivers integrated video conferencing services and solutions that are reliable, easy to use and deliver superior value. We are the global leader in video conferencing services. That's why 1000's of companies - including 40 of the Fortune 100 companies, are Wire One customers. Let us increase your video conference adoption and success rates - visit www.wireone.com or call +1 888-448-7726 in the US and +44 (0)870 001 7726 in the UK. About Applied Digital - "The Power of Identification Technology" Applied Digital develops innovative identification and security products for consumer, commercial, and government sectors worldwide. The Company'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 a majority position in Digital Angel Corporation (AMEX:DOC). 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.