Prescient Applied Intelligence Reports First Quarter 2007 Results

Business Wire, May 14, 2007

Company Continues Profitable Performance

WEST CHESTER, Pa. -- Prescient Applied Intelligence, Inc. (OTCBB:PPID), a leading provider of supply chain and advanced commerce solutions for retailers and suppliers, today reported financial results for the first quarter ended March 31, 2007.

HIGHLIGHTS

Income

* For the first quarter of 2007, the company recorded net income of $0.2 million representing a 136% improvement compared to the first quarter of 2006.

* The net loss applicable to common stockholders was ($0.3) million or ($0.01) per share for the first quarter of 2007 which includes a non-cash deemed dividend to the Series E Preferred stockholders of $0.3 million and accumulated undeclared dividends to the Series E Preferred stockholders of $0.2 million both resulting from a beneficial conversion feature. This compares to a net loss applicable to common stockholders of ($0.7) million, or ($0.02) per share, for the same period prior year.

Revenues

* Total revenue was $2.4 million for the first quarter of 2007, which represents a 1% increase over the prior year quarter.

* Subscription revenue in the first quarter was $1.6 million, which is an increase of 10% compared to the same period in 2006 and a 3% increase over the fourth quarter of 2006.

* License revenue for the first quarter of 2007 was $0.1 million; maintenance revenue was $0.4 million and services revenue was $0.3 million. As compared to the first quarter of 2006, license revenue decreased 40%, maintenance revenue decreased 5% and services revenue remained constant, showing less than 1% change from the prior year levels.

"We are pleased to be building on the success we achieved last quarter with another positive earnings report. Our profitability is a direct result of our solid operating platform," said Jane Hoffer, president and CEO of Prescient. "Year over year, our subscription revenue increased by 10%, which aligns with our corporate goal to increase subscription-based revenue. In the same time period, license revenue decreased due to smaller transaction sizes, typical of the overall trend in today's software market."

Operating Expenses

* Total operating expenses in the first quarter were $2.2 million, including $0.1 million of depreciation and amortization. Operating expenses decreased $0.9 million or 29% compared to the same period in 2006. The expense decreases over the prior year quarter are the result of successful cost cutting initiatives over the past year including the relocation of our data center as well as significant reductions in personnel and overhead related costs.

Cash & Cash Equivalents

* Cash provided by operations was $0.5 million during the three months ended March 31, 2007 as compared to ($0.2) million used in the prior year. Cash and cash equivalents were $1,184,000 as of March 31, 2007, up from $1,017,000 at December 31, 2006.

"As part of Prescient's on-going growth strategy, we recently entered into a Letter of Intent to purchase Fastech Integrated Solutions, LLC, a provider of world-class mobile, retail execution solutions tailored to the unique needs of the consumer products industry. Fastech's mobile merchandising systems complement the solutions Prescient provides to the retail marketplace. This transaction is expected to increase our revenue and provide additional liquidity as we look for opportunities to grow our business through acquisitions," added Hoffer.

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, Coors, Domino's Pizza, Meijer, Rite Aid, Sara Lee, Schwan's, SUPERVALU, and Wyeth rely on Prescient. For more information, go to www.prescient.com.

Forward-Looking Statement:

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "if", "should" and "will" and similar expressions as they relate to Prescient Applied Intelligence, Inc. are intended to identify such forward-looking statements. Prescient may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in Prescient's report on Form 10-QSB filed with the Securities and Exchange Commission and its other filings under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.