Intelligent Systems Technology, Inc. Wins $3 Million Navy Award For E-Learning and Performance Support.

Business Editors

SANTA MONICA, Calif.--(BUSINESS WIRE)--July 24, 2002

Intelligent Systems Technology, Inc. (ISTI) (www.intelsystech.com) announced today that it has won a $3 million award from the U.S. Navy to further develop and deliver 'MainTrain(TM),' a breakthrough e-learning and performance support system designed to interactively teach a variety of critical maintenance skills as well as assist operators in the conduct of shipboard procedures.

MainTrain(TM) transforms raw content into pedagogically sound instruction for the appropriate delivery device.

In April of this year, the MainTrain(TM) prototype was a centerpiece in the Task Force EXCEL vision brief given to the Chief of Naval Operations and has since been used as a marketing tool for Task Force EXCEL throughout the fleet. Task Force EXCEL is directed to the lifelong development of sailors with a view to making them "highly employable" as civilians after they complete their service to the Navy.

The MainTrain(TM) prototype has been successfully demonstrated to several Navy flag officers and other senior executives including the commanding officers of the Intermediate Maintenance Activities nationwide, who have expressed their enthusiastic support.

The first application of MainTrain(TM), which will be delivered in late September, focuses on maintenance skills training. The software will be delivered to selected shore-based Intermediate Maintenance Activities within the Navy for pilot evaluation. Potential other transitions are to the Center for Naval Engineering in Norfolk, Va. with other applications to follow.

This award comes on the heels of a highly successful Phase I effort that produced the MainTrain(TM) prototype. "We proved in the prototype phase that MainTrain(TM) will offer Navy personnel a whole new way to learn critical skills and procedures, in a way that will save time, increase retention, and reduce the learner dropout rate," said Dr. Azad Madni, Chairman and CEO of ISTI. "While the first application is maintenance skills training, what educators term a 'hard skill,' the software is equally applicable to teaching soft skills."

The MainTrain(TM) Phase III effort is intended to produce a set of highly effective and engaging, interactive multimedia courses for teaching shipboard maintenance activities. MainTrain(TM)'s design is based on effective pedagogical strategies and learning methods. These ensure rapid learning on the part of the trainees.

"E-learning and performance support, targeted to specific markets, is a key focus of the company. We expect our presence in this segment to grow with new contract awards, and with the release of our web-based learning and performance support suite in the second quarter of 2003," Madni added.

About Intelligent Systems Technology, Inc.

Intelligent Systems Technology, Inc. is a national corporation headquartered in Santa Monica, CA. ISTI provides web-based learning and performance support solutions for both military customers and Fortune 500 companies. ISTI is the winner of the 2000 Software Developer of the Year Award from the Software Council of Southern California, and has ranked in the Deloitte and Touche Los Angeles Technology Fast 50 for four consecutive years, and in the Deloitte and Touche U.S. Technology Fast 500 for two consecutive years. The Company was a recipient of the SBA's prestigious 1999 National Tibbetts Award for California for excellence in technology, research, and innovation.