ADSX + CSCO PALM BEACH, Fla., Oct 4, 2000 (BUSINESS WIRE) --
Working with Connect Intelligence, Applied Digital will have a 25-year
exclusive right to use up to 70 high-speed, fiber optic circuits,
which link Dublin with the US and connect Dublin with Europe
Applied Digital Solutions, Inc. (NASDAQ: ADSX), a leading, single-source
provider of e-business solutions, today announced that it has signed a letter of
intent to acquire an 80% stake in an e-commerce venture sponsored by Connect
Intelligence, a pan-European provider of e-infrastructure, Internet connectivity
and enhanced Internet services.
Based in Ireland, Connect Intelligence has successfully completed a vetting
procedure and has now been formally offered up to 70 high-speed fiber optic
circuits from the Irish government's Department of Enterprise and Employment.
The offering, part of the Irish government's e-commerce infrastructure
initiative, grants Connect Intelligence and its partners exclusive rights to
nearly one half of all circuits to and from the Republic of Ireland.
These Connect Intelligence circuits are part of the "Irish Loop" that connects
into Global Crossing's (Nasdaq: GLBX) Pan-European and Transatlantic fiber optic
network. Connect Intelligence will have a 25-year Indefeasible Right of Use
(IRU) on these circuits, 16 of which link Dublin and the United States, while 34
connect Dublin and Europe. Cisco Systems (Nasdaq: CSCO) has agreed to
participate in the Applied Digital-Connect Intelligence project by providing
end-to-end project management of all network development.
In a prepared statement, Richard J. Sullivan, Chairman and CEO of Applied
Digital Solutions, stated: "This is a remarkable opportunity for Applied
Digital, one that we believe will build long-term shareholder value through
profitable growth. This arrangement with Connect Intelligence will enable
Applied Digital to build on our existing operations in the United Kingdom and
expand our complement of e-business solutions under our ongoing strategy of
enabling e-business through CTII(TM) (Computer Telephony Internet Integration).
The European e-commerce market is booming right now. According to a recent
Lehman Brothers report ('Nothing But Net'), e-commerce spending in Europe is
expected to increase from about $50 billion this year to roughly $430 billion in
2003. That's a 140% annual growth rate, which would mean that Europe could soon
account for one third of the global e-commerce market. This unique arrangement
enables us to link up with proven networking and Internet infrastructure leaders
like Cisco Systems and Global Crossing. As a result, we'll be able to expand our
ability to serve the connectivity and enhanced e-commerce needs of our US-based
customers while reaching out to potential new customers in Europe."
By entering into this venture with Connect Intelligence, Applied Digital is
acknowledging the growing importance of providing customers with a reliable IT
infrastructure as part of its effort to be a single-source provider of
e-business solutions. According to Valerie Williamson, Vice President/General
Manager of NetWorld+InterOp, having a reliable IT infrastructure is key to a
company's e-business strategy. "Successful e-business," Williamson writes,
"depends on reliable IT infrastructure. As e-business takes center stage,
companies have to evolve their e-infrastructure and build strategic
relationships with external partners to meet these new business initiatives. To
survive, many companies are developing network strategies that integrate
outsourced services as well as internal networks."
Connect Intelligence, a company founded by 20-year IT industry veteran Max
Turpie, believes that large national and Pan-European enterprises in the
financial services, media and e-commerce sectors increasingly depend on the
Internet to conduct business, but they are constrained by the current
unreliability, lack of security, slow performance and limited functions of the
Internet. Through its arrangement with the Irish Government, Connect
Intelligence has the opportunity to own and operate a fully serviced and
supported private network throughout Europe, linked to the US with substantial
total capacity of 10.8 Gigabits for use in its managed data traffic services.
This new venture allows Applied Digital and its customers to benefit from direct
access to these advanced managed data services. Connect Intelligence plans to
use its private, high capacity, Pan-European fiber optic based server network to
provide its customers with a comprehensive suite of solutions that integrate
content delivery, hosting, intelligent networking and application services. The
primary services to be provided are:
--Connectivity Services: The Company will offer connectivity designed to deliver
high availability and performance required by high-volume Internet operations;
--Web Hosting: The Company will offer a comprehensive suite of solutions to meet
its customers current and future Web hosting needs;
--Application Hosting: Combining hosting capability with connectivity to provide
businesses with "always on" capability for high content delivery and transaction
sites;
The Applied Digital-Connect Intelligence venture plans to outsource the complete
rollout of the network to Cisco Systems. Because the Applied Digital-Connect
Intelligence venture will deploy a Cisco end-to-end network, the entire
operation will have Cisco Powered Network (CPN) status. Having CPN status
entitles the venture to differentiate its service offerings in association with
Cisco's leadership position in the Internet networking industry.
More Background on European E-Commerce Growth
The Lehman Brothers report cited by Richard Sullivan also states that over the
next four years there will be more than 100 million new European Internet users.
That increase in Web usage will bring Europe into rough parity with the United
States. In addition, a recent report by TeleGeography, Inc., a
telecommunications industry research firm based in Washington, D.C., points out
that until recently all of the Internet traffic exchanged between networks has
been routed through the U.S., even when the traffic didn't originate from or
stop at a U.S.-based destination. But that situation is changing. According to
TeleGeography, there is now more bandwidth linking European cities to each other
than there is between those cities and the United States. Also, of the Top Ten
international routes, seven originate and terminate in Europe, while only three
have connections to the U.S. Finally, TeleGeography reports that London has now
overtaken New York as the largest international Internet hub.
About Applied Digital's CTII(TM) Initiative
Applied Digital Solutions has successfully focused its strategic direction and
organized the company into four core business groups: Internet, Telephony,
Network and Applications. As part of this successful transformation, the company
has positioned itself as a leading-edge provider of Computer Telephony Internet
Integration (CTII) services. This CTII focus differentiates Applied Digital
Solutions in the e-business solutions marketplace. With CTII, Applied Digital
provides the full range of services and skills that companies need to conduct
business online. Through its four integrated business groups, Applied Digital
designs and deploys complete, front-to-back, web-enabled e-business systems --
all with a single point of contact for the customer.
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(TM)).
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 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.
CONTACT: Ovations International, Inc.
Matthew Cossolotto, 914/245-9721
matthew@ovations.com
or
ADS Investor Relations
Robert Jackson, 561/366-4800
Fax: 561/366-8591
rjackson@adsx.com
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