Smith-Gardner and Applied Digital Solutions Partner to Offer a

 Seamlessly Integrated Solution for 
Multi-Channel Retailers  
Business Editors  
DELRAY BEACH, Fla.--(BUSINESS WIRE)--May 31, 2000--Smith-Gardner 
(Nasdaq:SGAI), a leader in end-to-end software solutions for 
e-commerce, and Applied Digital Solutions, Inc. (Nasdaq:ADSX), a 
single-source provider of e-business solutions, today announced a 
partnership to provide integrated in-store and e-commerce solutions  
tailored to specialty retailers' multi-channel requirements. Under the 
arrangements of the partnership, the two companies will integrate 
Applied Digital's TradeWind(R) point-of-sale and enterprise 
connectivity applications with Smith-Gardner's Ecometry(TM), a 
universal suite of e-business applications. The new partnership allows 
Smith-Gardner and Applied Digital Solutions to jointly offer a 
customer-centric solution aimed at satisfying the brick-and-mortar, 
e-retailing and direct marketing needs of the growing ranks of 
multi-channel specialty retailers.  
Numerous Benefits to Retailers  
The combined solution provides the front-end and back-end 
functions that enable a specialty retailer to operate multiple sales 
channels from one common set of customer and transaction information. 
Customer knowledge is a key differentiation tool for multi-channel 
retailers. It is critical to have a single database to manage all 
customer information and to provide the ability to recognize shoppers, 
regardless of how or where they have purchased in the past. Whether 
the customer is being serviced in the store via a POS unit, or online 
from a retail web site, or from a telemarketer at a call center, a 
single view of the customer is provided. This translates to a more 
responsive, personalized customer shopping experience.  
John F. Shaw, Jr., director of IS development and support for 
Coldwater Creek (Nasdaq:CWTR), and a joint client of Smith-Gardner and 
Applied Digital, explained the benefits of the combined solution. "In 
order to provide the customer service that Coldwater Creek is known 
for, we need a truly integrated environment. That means all of our 
partners working together to create a seamless interface into all 
systems. It's the only way that we can continue to grow as a true 
multi-channel retailer."  
The details of the integration involve a single repository of 
customer and item information residing within Smith-Gardner's Ecometry 
system. Applied Digital's TradeWind POS and TradeRoute(TM) 
connectivity applications interface with Ecometry in real-time -- over 
a retailer's virtual private network (VPN) -- to search for, locate 
and display information to store personnel. To provide high levels of 
customer service, sales associates have the ability to:  

    --  Access a customer's purchase history for all sales channels 
    --  Locate a specific item at any store in the chain or in the 
         distribution center 
    --  Facilitate returns and exchanges regardless of purchase origin 
    --  Offer cross channel and upsell/cross-sell suggestions 
    --  Personalize customer communications based on customer profile 
        information, such as recency, frequency and monetary value 

Commenting on the announcement, Applied Digital's chairman and CEO 
Richard J. Sullivan said: "The ascent of the multi-channel retail 
concept has been remarkable. The ability of these retailers to offer 
today's shopper a choice of purchase methods is the key to their 
growth and success. We're excited to be partnering with Smith-Gardner 
to release an integrated solution that delivers the customer 
visibility and customer focus that multi-channel retailers require to 
continue to differentiate themselves."  
"Our partnership with Applied Digital enables us to complete our 
multi-channel solution set for specialty retailers," said Gary Hegna, 
chairman, president and CEO of Smith-Gardner. "Applied Digital offers 
a leading solution for point-of-sale and connectivity applications 
which extends the total package offering of our Ecometry suite. 
Together we empower retailers to provide their customers with a new 
level of personalized customer service."  
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  
Applied Digital Solutions' Retail Systems business unit develops 
and markets in-store systems, corporate data tools, and enterprise 
connectivity solutions to the retail industry. It has more than 15,000 
contracted installations in a client base of internationally 
recognized specialty retail companies, including Bata Limited, 
Cole-Haan, Inc., Dexter Shoe Company, Donna Karan Company, Estee 
Lauder Companies, Frederick's of Hollywood, Jos. A Bank Clothiers, 
Noodle Kidoodle, Stride Rite Children's Retail Group, and Things 
About Smith-Gardner  
Smith-Gardner is the premier provider of end-to-end e-commerce 
solutions worldwide. Smith-Gardner's family of products ensures 
customer satisfaction throughout the multi-channel shopping and buying 
experience. Headquartered in Delray Beach, Florida, the Company was 
founded in 1988 and has several hundred clients in 17 countries. 
Smith-Gardner operates regional headquarters throughout the United 
States, Europe and Asia Pacific. The Company's global client base 
includes, Hickory Farms, MicroWarehouse,, 
Nine West, Coldwater Creek,, Urban Outfitters and Zales. 
Smith-Gardner products earned Best of Comdex awards in 1998 and 1999, 
a Citation of Innovation at Internet and Electronic Commerce Expo in 
'99, and an award for Best New e-Commerce and Internet Product of the 
Year at The International Direct Marketing Fair in March. For more 
information on Smith-Gardner, visit the Company's web site at  
This news release may contain forward-looking statements regarding 
the Company's business. Such statements are subject to various risks 
and uncertainties, including those risks set forth in the prospectus 
dated January 29, 1999, which was used in connection with the 
Company's initial public stock offering, which may cause results to  
differ from management's current expectations. 
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