Prescient Applied Intelligence's Holders of Series E Preferred Stock Approved a Settlement Agreement with TAK Investments, LLC; All Outstanding Issues Resolved, Including the Termination of Approximately $7.3 Million in Outsourcing Commitments

Business Wire, August 10, 2006

WEST CHESTER, Pa. -- Prescient Applied Intelligence, Inc. (OTCBB:PPID), a leading provider of supply chain and advanced commerce solutions for retailers and suppliers, today announced that a settlement agreement, with TAK Investments, LLC (TAK) and one of its affiliates concerning an ongoing dispute with respect to Prescient's outsourcing agreement with TAK, among other issues, was approved today by holders of Prescient's Series E Convertible Preferred Stock. In connection with the approval of the settlement agreement, Prescient issued a three year secured promissory note to TAK in the principal amount of approximately $2,552,000 and a warrant to purchase 1,000,000 shares of Prescient's common stock on or before December 31, 2006 at an exercise price equal to the closing share price of Prescient's common stock on the day immediately preceding the date of the grant plus 10%.

About Prescient Applied Intelligence:

Prescient, founded in 1985 (OTCBB:PPID), is a leading provider of supply chain and advanced commerce solutions for retailers and suppliers. Prescient's solutions capture information at the point of sale, provide greater visibility into real-time demand and turn data into actionable information across the entire supply chain. As a result, the Company's products and services enable trading partners to compete effectively, increase profitability and excel in today's retail business climate. Household brand names like Ahold, AutoZone, Coors, Domino's Pizza, Rite Aid, Sara Lee, Schwan's and Wyeth rely on Prescient. For more information, go to www.prescient.com.

Forward-Looking Statement:

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