TEKCC Teknowledge (MM)

PALO ALTO, Calif., Aug. 30 /PRNewswire-FirstCall/ -- Teknowledge today released the text of a question and answer session with President and CEO, Neil Jacobstein. Q: Why did Teknowledge change its symbol from TEKC to TEKCC after a high volume trading day? A: NASDAQ requested the symbol change weeks ago, and they controlled its timing. Q: Why did Teknowledge sell TekPortal? A: This was the culmination of our strategy to address the financial challenges that Teknowledge has faced recently and to refocus the Company's efforts on its Financial Services, Government R&D, and Technology Licensing lines of business. The Company was not selling enough TekPortal licenses to cover its development and amortization costs. So, we sold the TekPortal technology, and kept our Financial Solutions services contracts and business. Q: Why didn't you sell the whole Company? A: Intuit Inc. purchased the assets most relevant to its core businesses, specifically the TekPortal technology and our pending patent related to OFX. Q: What will Teknowledge's Financial Solutions business unit sell now? A: Financial Solutions will sell and deliver financial software integration services. It will also provide support for Teknowledge's current maintenance customers via a subcontract with Intuit Inc. Q: Will the Company go back to its government R&D roots? A: Not exclusively. We have always had a mix of commercial and government revenue, and we plan to continue to broaden our customer base. Q: Will Teknowledge still pursue artificial intelligence R&D and applications? A: Yes. We are quite excited about many new prospects on this front. After many years in the doldrums, we think AI is due for a comeback, powered by semantic web application services. Q: What can you say about the backlog of government contract R&D? A: It is at a low point now. We are actively working on rebuilding it with new proposals and contract awards. Q: What is your new vision for Teknowledge? A: My vision for Teknowledge is to deliver first-rate software services to financial and government customers, and to develop new knowledge based products delivered via web application services. The new software that we develop may be licensed to other companies with substantial marketing resources and a large customer base, or provided directly to the millions of potential end users on the web. Q: Does the Company now have all the resources it needs to invest in new products? A: Not really. For the near term, we will focus on delivering software services and developing the new technology prototypes already under contract. We plan to raise additional funds to accelerate new product development. Q: What about the integration services Teknowledge currently provides to its financial institution customers? A: Teknowledge will continue to deliver high quality integration services to its financial institution customers. This will not be transferred to Intuit Inc. Q: Will current Teknowledge customers need to sign a new TekPortal maintenance contract with Intuit Inc.? A: We sold TekPortal to Intuit Inc. but kept the current maintenance contracts. One of our key objectives in working with Intuit Inc. has been to ensure a smooth transition for all of our customers and resellers. There will be no short-term need for our current customers to sign a contract with Intuit Inc. to maintain customer support of their current TekPortal installation/applications. Teknowledge has arranged to get TekPortal support for its current customers for a period of up to two years via a subcontract with Intuit Inc. Teknowledge and Intuit Inc. are committed to supporting existing customers. We expect that over time Intuit Inc. will provide new offerings to current TekPortal customers. Q: What is the basis for your optimism about Teknowledge's future prospects? A: Fundamentally, I believe in the economic power of excellent customer service, and applying knowledge effectively to solve high value financial and government problems. The rapidly accelerating amount of useful information on the web enables us to employ knowledge systems to interpret that information, and put it to work adding value. Teknowledge has the services skills, technology prototypes, and intellectual property portfolio that provide competitive advantage for this type of work. We continue to have new service, product, and licensing opportunities to grow Teknowledge's value significantly over time. About Teknowledge Corporation Teknowledge (NASDAQ: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, including 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 sale 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. FOR FURTHER INFORMATION: AT TEKNOWLEDGE Dennis Bugbee Vice President of Finance and CFO Ph: 650-424-0500 DATASOURCE: Teknowledge Corporation CONTACT: Dennis Bugbee, Vice President of Finance and CFO of Teknowledge, +1-650-424-0500, or Web site: http://www.teknowledge.com/

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