Applied Digital Solutions, Inc., (NASDAQ: ADSX) a single-source provider of e-business solutions, today announced that its TradeWind® software system was selected by Strouds, Inc. (NASDAQ: STRO) to manage in-store and point-of-sale operations for the specialty retailer's new "Pure Linens" boutique stores.

In addition, Strouds will install Applied Digital's TradeCenter® data warehousing software and TradeRoute® Internet messaging application to connect all Pure Linens stores with the company's corporate office.

Because Pure Linens will offer customers extensive personalized services, Strouds' management team felt that only a state-of-the-art, point-of-sale system would be capable of supporting the boutiques' complex needs. For example, sales associates will require a system that can provide broad product information, special order capabilities and advanced "clienteling" tools. Additionally, the system must provide other avenues for reaching out to customers and improving service levels -- such as direct e-mails to shoppers, web inquiries, access to corporate systems for inventory look-ups, and the ability to provide associates access to portfolios containing customers' individual purchase histories.

"We knew that we needed an advanced POS system for our new line of stores," said Dick Stanton, Strouds' Vice President of Management Information Systems. "TradeWind clearly met all of the requirements that we defined for our Pure Linens boutiques. Equally important, Pure Linens will be fully networked and connected with frame relay lines, which will lead to tremendous administrative and cost efficiencies down the road."

Commenting on the announcement, Applied Digital Chairman and CEO Richard J. Sullivan said: "With a wide area network in full operation, Strouds will be able to create a high-service environment by leveraging the most advanced technology. In terms of connectivity, Pure Linens boutiques will instantly take its place among the vanguard in the specialty retail industry. We look forward to building a successful long-term partnership with Strouds and supporting its ongoing visionary customer service efforts."

The Benefits of Going High-Tech

In addition to the long-range benefits provided by Applied Digital's system, Strouds anticipates a variety of immediate benefits including overall flexibility and ease-of-use, especially for store associates using the customer profiling capabilities. "TradeWind works right out of the box," Stanton said. "Since it doesn't need to be rebuilt or retooled in any way, Pure Linens will be providing top flight customer service from day one."

Strouds also will implement trickle polling and a host-based data warehouse with real-time information sharing related to gift certificates, store credit and customer look-ups. The resulting benefits will include more efficient customer service through purchase history look-ups, suggestive selling and simplified management of promotion pricing. By integrating the new system with Strouds' current enterprise resource planning system, the stores will be able to share information more quickly and reliably.

TradeWind is Applied Digital Solutions' award winning in-store application that helps to improve customer service, enhance inventory tracking capabilities and streamline the management of an operation's customer information database. TradeRoute is a new suite of communications and messaging applications that incorporates Internet-style communications over a wide area network (WAN) to enable specialty retailers to connect their stores with their corporate offices. TradeCenter is Applied Digital's highly innovative data warehousing software.

About Strouds, Inc.

Strouds, Inc., the Linen Experts®, is a specialty retailer of bed, bath, tabletop and other home textile products in the United States. The Company operates 70 stores, primarily in California, with locations in Nevada, Minnesota, Illinois and Arizona. The Company currently markets its home products on the Internet at www.lineexperts.com and www.strouds.com.

About Applied Digital Solutions, Inc.

Applied Digital Solutions is a leading edge, single-source provider of e-business solutions. The company differentiates itself in the marketplace by enabling e-business through Computer Telephony Internet Integration (CTII). With five-year revenue growth (from 1994 to 1998) of 64,012%, Applied Digital Solutions is ranked as the fifth fastest-growing technology company by Deloitte & Touche in its 1999 Technology Fast 500 listing. For more information, visit the Company's web site at www.adsx.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.