Intelligent Systems Completes Sale of PaySys International Affiliate; Company Nets $22.1 Million at Closing

Apr 30, 2001, 01:00 ET from Intelligent Systems Corporation

    NORCROSS, Ga., April 30 /PRNewswire/ -- Intelligent Systems Corporation
 (Amex:   INS); (www.intelsys.com ) announced today that it has completed the
 sale of its ownership interest in PaySys International, Inc., an affiliate
 company and a leader in financial transaction processing software
 applications, in a cash transaction.
     Intelligent Systems, along with other shareholders of PaySys
 International, Inc., sold all of the outstanding stock of PaySys to Atlanta-
 based First Data Corp. (NYSE:   FDC), a global provider of e-commerce and
 payment services.  Net proceeds to Intelligent Systems from the sale of its
 PaySys stock were $17,800,000.  In addition, at the closing PaySys repaid to
 Intelligent Systems $4,300,000 in principal and interest related to short-term
 bridge financing.
     J. Leland Strange, President and Chief Executive Officer of Intelligent
 Systems, said, "As the largest shareholder in PaySys, we are particularly
 gratified that the strategic fit between the PaySys software business and
 First Data's e-commerce and payment services allowed PaySys shareholders to
 realize a fair value under current market conditions."
     Intelligent Systems retains an approximately 30 percent ownership share in
 each of two development stage companies that were spun off from PaySys
 immediately prior to the sale transaction.  The two companies, Delos Payment
 Systems, Inc and dbbAPPS, Inc., will develop and market the proprietary dBB
 operating platform and application software that has been under development by
 PaySys for the past several years.
     Strange commented, "Through the early stage spin-off companies, we now
 have the opportunity to explore new applications beyond the credit card
 processing industry that we believe will benefit from the unique
 characteristics of the dBB software technology."
     As part of the sale transaction, a significant escrow fund was set aside
 for potential liabilities that may arise after the closing.  The balance of
 the escrow fund, after payment of any such claims, will be distributed pro
 rata to the PaySys shareholders, including Intelligent Systems, as additional
 sale proceeds at various time periods over the next four years.
     On March 19, 2001, Intelligent Systems had announced the definitive
 agreement and various closing conditions related to this sale.  The
 transaction was completed on essentially the same terms and conditions and
 within the timeframe originally announced.
 
     About Intelligent Systems Corporation
     For more than twenty-five years, Intelligent Systems Corporation has
 identified, created, operated and grown early stage technology companies.  The
 company uses a combination of business know-how, flexible support, a network
 of contacts and resources and equity capital to create sustainable companies.
 Since 1990, the company has operated the Intelligent Systems Incubator, an
 award-winning pioneer in privately funded incubators.  Further information is
 available on the company's website at www.intelsys.com , or by calling the
 company's headquarters at 770/381-2900.
     In addition to historical information, this news release contains forward-
 looking statements relating to Intelligent Systems and its affiliated
 companies.  Such forward-looking statements are not guarantees of future
 performance and involve risks and uncertainties.  Actual results may differ
 materially from those contemplated by such forward-looking statements and the
 company does not undertake to update or revise any forward-looking statements
 whether as a result of new developments or otherwise.  Among the factors that
 could cause actual results to differ materially are changes in financial
 market conditions, actions of third parties, delays or changes of intent by
 third parties, delays in product development, competitive pressures, technical
 difficulties, changes in customer requirements, market acceptance of products
 and services, availability of capital, availability of qualified personnel,
 financial results and valuation of partner companies, and general economic
 conditions.
 
     CONTACT:  Bonnie Herron of Intelligent Systems Corporation, 770-564-5504,
               or bherron@intelsys.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13116771
 
 

SOURCE Intelligent Systems Corporation
    NORCROSS, Ga., April 30 /PRNewswire/ -- Intelligent Systems Corporation
 (Amex:   INS); (www.intelsys.com ) announced today that it has completed the
 sale of its ownership interest in PaySys International, Inc., an affiliate
 company and a leader in financial transaction processing software
 applications, in a cash transaction.
     Intelligent Systems, along with other shareholders of PaySys
 International, Inc., sold all of the outstanding stock of PaySys to Atlanta-
 based First Data Corp. (NYSE:   FDC), a global provider of e-commerce and
 payment services.  Net proceeds to Intelligent Systems from the sale of its
 PaySys stock were $17,800,000.  In addition, at the closing PaySys repaid to
 Intelligent Systems $4,300,000 in principal and interest related to short-term
 bridge financing.
     J. Leland Strange, President and Chief Executive Officer of Intelligent
 Systems, said, "As the largest shareholder in PaySys, we are particularly
 gratified that the strategic fit between the PaySys software business and
 First Data's e-commerce and payment services allowed PaySys shareholders to
 realize a fair value under current market conditions."
     Intelligent Systems retains an approximately 30 percent ownership share in
 each of two development stage companies that were spun off from PaySys
 immediately prior to the sale transaction.  The two companies, Delos Payment
 Systems, Inc and dbbAPPS, Inc., will develop and market the proprietary dBB
 operating platform and application software that has been under development by
 PaySys for the past several years.
     Strange commented, "Through the early stage spin-off companies, we now
 have the opportunity to explore new applications beyond the credit card
 processing industry that we believe will benefit from the unique
 characteristics of the dBB software technology."
     As part of the sale transaction, a significant escrow fund was set aside
 for potential liabilities that may arise after the closing.  The balance of
 the escrow fund, after payment of any such claims, will be distributed pro
 rata to the PaySys shareholders, including Intelligent Systems, as additional
 sale proceeds at various time periods over the next four years.
     On March 19, 2001, Intelligent Systems had announced the definitive
 agreement and various closing conditions related to this sale.  The
 transaction was completed on essentially the same terms and conditions and
 within the timeframe originally announced.
 
     About Intelligent Systems Corporation
     For more than twenty-five years, Intelligent Systems Corporation has
 identified, created, operated and grown early stage technology companies.  The
 company uses a combination of business know-how, flexible support, a network
 of contacts and resources and equity capital to create sustainable companies.
 Since 1990, the company has operated the Intelligent Systems Incubator, an
 award-winning pioneer in privately funded incubators.  Further information is
 available on the company's website at www.intelsys.com , or by calling the
 company's headquarters at 770/381-2900.
     In addition to historical information, this news release contains forward-
 looking statements relating to Intelligent Systems and its affiliated
 companies.  Such forward-looking statements are not guarantees of future
 performance and involve risks and uncertainties.  Actual results may differ
 materially from those contemplated by such forward-looking statements and the
 company does not undertake to update or revise any forward-looking statements
 whether as a result of new developments or otherwise.  Among the factors that
 could cause actual results to differ materially are changes in financial
 market conditions, actions of third parties, delays or changes of intent by
 third parties, delays in product development, competitive pressures, technical
 difficulties, changes in customer requirements, market acceptance of products
 and services, availability of capital, availability of qualified personnel,
 financial results and valuation of partner companies, and general economic
 conditions.
 
     CONTACT:  Bonnie Herron of Intelligent Systems Corporation, 770-564-5504,
               or bherron@intelsys.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13116771
 
 SOURCE  Intelligent Systems Corporation

RELATED LINKS

http://www.firstdatacorp.com