PALO
ALTO, Calif., August 22, 2005 -- Teknowledge Corporation
(Nasdaq SmallCap: TEKCC),
announced today that it concluded an asset transaction to sell its TekPortal®
technology, an asset from its Financial Solutions business unit, to
Intuit, Inc. (Nasdaq: INTU) for 7 million dollars. As part of the technology
sale, Intuit was granted a license to each of Teknowledge's six active
patents, and acquired Teknowledge's pending patent on OFX technology.
Teknowledge will retain ownership of all its current patents.
Neil Jacobstein, Teknowledge President and CEO said: "This deal is a win for
both companies. Intuit acquires technology that is strategic to its business,
and Teknowledge delivers on its objective to raise capital via the sale of an asset
or product line. This permits Teknowledge to focus on its core competencies
of developing knowledge-based software technology, and delivering integration
services for financial and Government customers."
Jacobstein continued: "This sale demonstrates that Teknowledge can produce high
quality, application-specific software technology. A key feature of our business model
going forward will be to license our other innovative software technologies
to companies with substantial marketing resources and a large customer base.
We see this as an exciting opportunity to build on our strengths."
Teknowledge will continue to provide financial software integration services
for TekPortal software in its Financial Solutions Business unit. The TekPortal
development team will transfer to Intuit, Inc., but other members of the
Financial Services and integration team, including its outside service
contractors, will be retained by Teknowledge. The Company will support its
current TekPortal maintenance contracts for a period of up to 2 years, with
the expectation that many of these customers may choose to transition over
time to Intuit. Teknowledge will continue to deliver services and support
for its custom business banking software maintenance contracts.
Teknowledge also plans to grow its innovative Government R&D contracts
business, which could generate additional licensable technology, particularly
in software security, machine learning systems, and Web-based application
services. The asset sale will permit Teknowledge to expand its patents and
technology licensing activities, which are based on technology developed in
its Government and commercial services businesses.
About Teknowledge Corporation
Teknowledge [TEKCC] delivers innovative software and services to transform
data into value. It provides integration services for financial institutions,
and is a contractor for Government R&D in network security. Web-based
training, distributed systems, and knowledge processing. Founded in 1981,
Teknowledge holds an extensive intellectual property portfolio, includiing
six active software patents.
Forward-looking statement: Except for the historical information, the
matters discussed in this news release may contain forward-looking statements,
including, but not limited to, factors relating to future sales and income
growth. These forward-looking statements may involve a number of risks and
uncertainties. Actual results may vary significantly based on a number of
factors, including, but not limited to, uncertainties in product demand, the impact of
competitive products and pricing, changing economic conditions around the world,
release and sales of new products, and other risk factors detailed in the
Company's most recent annual report on Form 10-KSB and its other filings with
the Securities and Exchange Commission.
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