NORCROSS, Ga., Aug. 2, 2006 (PRIMEZONE) -- Intelligent Systems Corporation (AMEX:INS) today announced the sale of its QS Technologies, Inc. business to Netsmart Technologies, Inc. (Nasdaq:NTST) effective July 31, 2006. Intelligent Systems sold the QS Technologies' business and related assets for $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. The transaction also provides for potential additional payments to Intelligent Systems of up to $1.45 million in 2008, contingent upon the attainment of performance milestones by the QS business through 2007.
J. Leland Strange, president and chief executive officer of Intelligent Systems Corporation, stated, "QS Technologies has been a part of Intelligent Systems since 1997. During that time, it has grown into a valuable business with a well-deserved reputation for its industry expertise and outstanding software products and customer service. With this sale to Netsmart, QS is now aligned for its next phase with another strong company focused on the public health software and services market. Together, QS and Netsmart are well positioned to take advantage of new opportunities."
The QS Technologies business will continue to operate with its current employees at its Greenville, S.C. location.
About Intelligent Systems Corporation
For over thirty years, Intelligent Systems Corporation (AMEX:INS) has identified, created, operated and grown early stage technology companies. After the QS Technologies sale, 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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