Under the terms of the rights offering, Intelligent Systems distributed non-transferable rights to purchase one share of common stock of the Company at a price of $0.70 per share for each share owned by holders of the Company's common stock on June 17, 2009, the record date for the rights offering. The subscription period began on June 18, 2009 and ended on July 17, 2009. The offering was oversubscribed by approximately 13 percent and, in accordance with the terms of the offering, rights holders who exercised their oversubscription privilege are allocated oversubscription shares pro rata in proportion to their basic subscription privilege. A total of 4,479,014 shares of common stock of the Company were purchased.

J. Leland Strange, Chief Executive Officer of Intelligent Systems, said, "We are very pleased with the response to our rights offering and the fact that it was over-subscribed definitely exceeded our expectations. Apparently our shareholders agree with management that Intelligent Systems has more value than apparent in the recent stock price. With this vote of confidence, we will further expedite our growth plans for our ChemFree and CoreCard Software subsidiaries.

"We will be using the proceeds primarily to expand marketing for software licensing and the entry into card processing services of CoreCard Software. CoreCard has developed all the software needed to process many of the accounts receivable and card products now being processed by larger processors such as TSYS and First Data and can offer processing services at a lower total cost of ownership. We will be simultaneously pursuing credit card issuers, merchant acquirers, fleet card processors, prepaid/loyalty issuers, and private label accounts receivable customers. CoreCard is also in a position to manage accounts and collections of some of the bad loans, leases and debts that financial institutions are being forced to deal with in this economy."

About Intelligent Systems Corporation:

For over thirty years, Intelligent Systems Corporation has identified, created, operated and grown early stage technology companies. The Company has operations and investments in the information technology and industrial products industries. The Company's consolidated subsidiaries are CoreCard Software, Inc. (www.corecard.com), a software company, and ChemFree Corporation (www.chemfree.com), an industrial products company.