GK Intelligent Systems Receives 100% of Ascendant TSG
Shares in Exchange Agreement

Tuesday August 17, 10:00 am ET

HOUSTON--(BUSINESS WIRE)--Aug. 17, 2004--GK Intelligent Systems, Inc.
(OTCBB:GKIG - News), a publicly held micro-marketing company with
entertainment and technology subsidiaries, announced today that it reached a
definitive agreement to exchange its shares with Houston-based Ascendant TSG,
a privately held corporation. Under the agreement, GKIG issued undisclosed
equity in return for 100% ownership of the current issued and outstanding
shares of Ascendant TSG. The transaction was arranged by Stanton, Walker &
Company, a New York-based consulting firm retained by GK.

According to the President and CEO of GK Intelligent Systems, Inc., Gary
Kimmons, "Ascendant TSG has distinguished itself in the business process
management solutions marketplace by offering superior service. Also, it has
key alliances with industry leaders such as Microsoft and IBM. Ascendant will
be a profitable enterprise while assisting GKIG with its growth objectives."

Julie Maranto, President and COO of Ascendant, commented "I am very pleased to
become a part of GK Intelligent Systems, Inc. This is a significant
opportunity for Ascendant to obtain the resources it needs to grow and move
into new markets."

About Ascendant TSG

Founded in 1992, Ascendant TSG is a privately held, Houston-based full service
provider of quality collaborative e-business process software, process
consulting, rapid web development and hosting services. Ascendant TSG has
assembled an excellent team of seasoned professionals. Led by an executive
team which draws upon years of experience in business and technology,
Ascendant TSG provides a uniquely professional and productive approach to
solutions provisioning.

About GK Intelligent Systems

GKIG is a micro-marketing company leveraging its public status and advanced
software technologies to offer a new form of personalized sales and marketing
service. GKIG has a business model that features "permission marketing," a
targeted marketing approach designed to obtain enhanced information from the
buyer-seller relationship. The Company acquires and operates profitable
entertainment and technology subsidiaries that support this model. It also is
developing a new subsidiary, Recording Artist Worldwide (RAWW!), which will
feature permission marketing in the music marketplace.

For more information on GK Intelligent Systems please visit the corporate
website, www.gkis.com, and its music entertainment subsidiary's website,
www.RAWW.com.

Safe Harbor

Statements in this news release that are not historical facts, including
statements about plans and expectations regarding products and opportunities,
demand and acceptance of new or existing products, capital resources and
future financial results, are forward-looking. Forward-looking statements
involve risks and uncertainties which may cause the Company's actual results
in future periods to differ materially from those expressed. These
uncertainties and risks include changing consumer preferences, lack of success
of new products, loss of the Company's customers, competition and other
factors discussed from time to time in the Company's filings with the
Securities and Exchange Commission.