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Intelligent Systems Completes Sale of Minority Stake in Horizon Software
Norcross, GA – September 6, 2006 - Intelligent Systems Corporation (AMEX: INS) today announced the sale of its minority interest in Horizon Software, Inc., a privately held software company headquartered in Loganville, Georgia. Effective as of August 31, 2006, Intelligent Systems sold its entire holdings of Series A Preferred Shares of Horizon to Horizon Software Holdings, Inc. (the “Buyer”), an entity comprised of Horizon’s founder and other officers of the company. ISC sold the Horizon stock for an aggregate price of $5.7 million, consisting of $2.85 million in cash at the closing and a secured promissory note of Buyer for $2.85 million due January 31, 2007.
J. Leland Strange, President and Chief Executive Officer of Intelligent Systems Corporation, stated, “Our investment in Horizon enabled the company to build on its base in the K-12 education market for Foodservice Management systems and to accelerate its successful expansion into the military, higher education and corporate/resident dining markets. This sale transaction provides a solid return for Intelligent Systems and demonstrates the commitment and optimism of Horizon’s management owners to continue to excel as a privately-held software company.”
As previously reported on August 1, 2006, ISC completed the sale of its QS Technologies business to Netsmart Technologies, Inc. in a transaction consisting of $1.9 million cash, a promissory note of $1.435 million and the assumption by Netsmart of approximately $1.8 million in net liabilities of QS. In addition, ISC retained accounts receivable and cash of QS Technologies aggregating approximately $2.0 million.
ISC intends to file a Form 8-K today with the Securities and Exchange Commission related to the Horizon Software transaction.
About Intelligent Systems Corporation
For over thirty years, Intelligent Systems Corporation [AMEX: INS] has identified, created, operated and grown early stage technology companies. The company’s consolidated subsidiaries include VISaer, Inc. (www.visaer.com) and CoreCard Software, Inc. (www.corecard.com), (both software companies) and ChemFree Corporation (www.chemfree.com) (an industrial products company). Further information is available on the company’s website at www.intelsys.com, or by calling the company at 770/381-2900.
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