Company
Description

  
Intelligent Systems Corporation (AMEX: INS), through its subsidiaries, is engaged in the business of designing, developing, selling and supporting products in two segments.  The Information Technology Products and Services segment includes subsidiary CoreCard Software, Inc. and the Industrial Products segment includes our ChemFree Corporation subsidiary.  Occasionally, we make controlled investments and acquisitions as part of our basic operating strategy.  Our management is comprised of industry-recognized entrepreneurs with decades of “in-the-trenches” experience and a track record of creating and managing early and growth stage businesses. 

Our CoreCard Software subsidiary provides software to manage high volume financial account transactions such as pre-paid cards, credit and debit cards, merchant and loan accounts.  ChemFree Corporation, our Industrial Products segment subsidiary, designs, assembles and sells a line of SmartWasher® parts washers and associated fluid and filter supplies that are used by commercial, industrial, military and government agencies to maintain and service machinery or vehicles used in their operations. 

Throughout our 30-year history, we have operated subsidiaries that typically are early and growth stage businesses, which we have either grown from start-up phase or in which we have acquired a majority of the voting securities.  The common thread in our efforts is bringing new technologies to business markets.  Thus, a critical element of our business model is being proactive in identifying emerging technologies, markets, companies, etc.  In pursuing this model, we may on occasion initially be a minority owner in an enterprise, which may subsequently lead to our assuming a majority position if we determine that the entity or its technology fits our overall strategic direction. 

Although we are structured as an operating holding company, our corporate management is very involved in operations.  For instance, Leland Strange, our CEO, also serves as Managing Director of our CoreCard Software subsidiary, with a leadership role in sales, business development and operational functions for CoreCard Software.  Similarly, Frank Marks, one of our Vice Presidents, is President and CEO of our ChemFree subsidiary, and has full time, operational responsibility for that company.  And Bonnie Herron, CFO of our company, is also Secretary/Treasurer of several of our subsidiaries and Executive Director of our Gwinnett Innovation Park incubator program, in addition to her corporate responsibilities.

Founded in Georgia in 1973, Intelligent Systems became a publicly traded company in 1981.  During the 1980’s, we created and operated a number of businesses that were market leaders in such product areas as intelligent terminals, multifunction and graphics cards, color monitors, portable computers and fax modems.  After spinning off our hardware companies in the late 1980’s, we focused on creating or acquiring new companies principally in the software arena and founded our incubator program.  Since the early 1990’s, our emphasis has been on identifying and growing early stage companies either as a majority or control shareholder or, in certain situations, as a minority owner if we believe the company or technology might be a good fit with our strategy and create shareholder value.  Some of our former companies include VISaer, Peachtree Software, OrCAD, IQ Software, MediaMetrix and PaySys International.

The Gwinnett Innovation Park (formerly called the Intelligent Systems Incubator), located at the company headquarters in a suburb of Atlanta, Georgia, is the largest, longest running, privately sponsored incubator program in the country.  In 1999, the incubator was honored with the “Incubator Client of the Year” award by the National Business Incubation Association and in 2002, was ranked in the top 10 best performing technology incubators in the U.S.  Our client companies have access to resources such as office space, communication infrastructure, a network of professional resources, and business advice and planning.  The program provides us with a window on developing trends and technologies that may occasionally benefit the company and it is also a way to provide a civic service and encourage entrepreneurism.   

 Audit Committee Charter