Intelligent Environments sells ScreenSurfer business

28th August 2001 - Intelligent Environments Group plc ("iE" or "the Company"), the financial services e-business provider, today announces the sale of its US-based ScreenSurfer business to Ives Development, Inc.

Prior to the sale, iE agreed to licence its ScreenSurfer "web-to-host" middleware product to Mentis International Corporation. The combined value of the licence agreement and the sale of the ScreenSurfer business is $400,000 which, after expenses, will contribute approximately $200,000 of cash to iE.

As part of the disposal agreement of ScreenSurfer, iE stands to benefit from royalty payments over a two year period that could be in excess of $1 million, dependent on the future performance of the ScreenSurfer business under the management of Ives Development, Inc. The proceeds will provide additional working capital for the Company and its subsidiaries.

In the year ended 31 December 2000, Screensurfer's associated assets were minimal and the business contributed revenues of $753,000, less than 10% of iE's revenues. The sale of ScreenSurfer to Ives Development, Inc. includes the transfer of two ScreenSurfer staff which will result in future savings to the Company. The staff and other direct ScreenSurfer costs totalled $290,000 in the first half of 2001; other indirect costs were at a level as to make the ScreenSurfer business loss-making.

The sale of ScreenSurfer follows the announcement on 2 August 2001 that all US activity is now managed through partners.

Phillip Blundell, Chief Executive of iE commented: "This disposal is in line with our strategy to focus the business on our key financial services products and applications for the UK market."