HOUSTON, May 11, 2004 (PRIMEZONE) -- GK Intelligent Systems, Inc. (OTCBB:GKIG), a publicly traded holding company with entertainment and technology subsidiaries, announced today the Company's revised business plan.
Gary F. Kimmons, the Company's President and CEO commented, "To enhance shareholder value, we have taken the last several months to update our valuation proposal, evaluate our capital structure and focus our subsidiaries on their core businesses. In our efforts to grow this Company organically and through acquisitions, we have retained the services of Stanton and Walker & Co. and Focus Partners LLC. I believe our media entertainment future looks very bright as we expect to begin announcing acquisitional growth in the upcoming coming weeks. Additionally, while in expansion mode, we will be adding to our Board of Directors and appointing an auditing committee to strengthen compliance and corporate governance issues."
In late 2003, the Company created a new subsidiary, Recording Artists Worldwide, Inc., (RAWW). RAWW was formed to incubate exciting music related opportunities and plans to create, record and distribute music media. RAWW will also license advanced technologies and delivery systems to suppliers of music-oriented goods and services. GKIG's state-of-the-art personalization and delivery technologies offer a profitable and convenient alternative to the existing music industry production.
RAWW's aim is to be a one-stop incubator of music talent offering tomorrow's future stars all the necessary resources to become the next big thing in the music industry. "Music is the world's universal form of communication," stated the Recording Industry Association of America (RIAA) recently. "It touches every person of every culture on the globe to the tune of $40 billion annually, and the U.S. recording industry accounts for one-third of that world market." The music industry has been asking itself how it can compete in a free downloading environment. GKIG acknowledges this and plans to introduce new revenue-generating mechanisms into the music business model.
In early 2003, the Company created Smart One Learning Systems, Inc., (SOLS). SOLS is a leading educational technology company specializing in delivering advanced teaching technologies and teachers' assistance programs to education providers. SOLS uses advanced personalization technologies based on GKIG's award-winning Smart One(sm) learning technology to provide suppliers of educational products and services with a value-added educational component. Smart One instructional technology was chosen as a Flagship Technology by the United Nations (1998) and selected "Best Product, Retail Strategy and Technology" by the Retailers of America (1999). GKIG's initial product, Around the Web in 80 Minutes, earned it a preferred relationship with key branded entities including National Geographic, Radio Shack, Discovery Channel, The Smithsonian and AOL.
The online education market is the result of the convergence of the education industry, one of the largest and fastest growing sectors in the U.S., with the Internet, the growing means of communicating and accessing information. The scope of the education market is immense - $54.2 billion will be spent this year in the U.S. corporate arena alone. Of that sum, $15.1 billion will go to outside providers of training products and services. E-learning is expected to reach $50 billion by the year 2010.
About GKIG
GKIG at the time of this announcement has 41,457,225 million shares issued and outstanding. GK Intelligent Systems is a developer, provider and licensor of proprietary "intelligent" software technology products and supporting technologies designed to personalize nationally-branded products and services, with the objective of improving profitability and fostering higher levels of customer satisfaction and brand loyalty.
For more information on GK Intelligent Systems please visit the corporate website, www.gkis.com, and its exciting music entertainment subsidiary's website, www.RAWW.com.
Safe Harbor
Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of the Company's customers, competition and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.