FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: September 30, 2003
(date of earliest event reported September 30,2003)

Commission File Number: 0-11596


ExperTelligence, Inc.
(Exact name of registrant as specified in its charter)

California 95-3506403
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation) Identification No.)

614 Chapala Street, Santa Barbara, California 93101
(Address of principal executive offices and zip code)


Registrant's telephone number: (805) 962-2558

Item 5 - OTHER EVENTS
On May 12, 2003, Expertelligence (the "Company") announced that
it will conduct an auction to sell the company assets and use
the proceeds to settle company debt, distributing any remainder
to shareholders.  The company issued the following notice of
auction:


NOTICE
Date:    September 30, 2003
Subject: NOTICE OF AUCTION OF COMPANY ASSETS
From:    William Urschel, CEO
To:      All debtors and shareholders of ExperTelligence


As the directors and officers of ExperTelligence, Inc., (EXGP.PK)
Denny Bollay and I have been unable to raise capital for the
company.  Over the last 14 months we have contacted existing
shareholders and dozens of new potential investors in at least
two formal private placements, and while many see promise in
the technology and the market, the history and structure of
this public company has discouraged them from making an
investment.

On an operational level, the company has been running in the
red for quite some time.  Sales from existing products have
been minimal.  WebBase brings in about $10,000 a month, about
75% of which goes out as commissions to the sales and support
people.  3DStockCharts brings in about $11,000 a month in
income from which about covers the data feeds and other direct
costs of that enterprise but not any of the engineering or
customer support.  Advertising Commerce Network has no income.

The company has no cash or other liquid assets, and it has
significant debt.  Most of this debt is unpaid salary: Denny
and I have both worked for over a year without pay in an
attempt to restart the company.

The cost of keeping the company public has also increased
with the Sarbanes-Oxley Act of 2002: we have been given
estimates that the combined accounting and legal fees are
now a minimum of $500,000 a year for a bulletin board company.
Even now, the company is company is behind on its audits, SEC
filings, and tax returns because it cannot pay its accountants,
auditors, and attorneys.

Finally, the company cannot attract the directors and officers
it needs.  All candidates have declined our offers because of
the personal liability they would face: the company does not
have directors' and officers' insurance and, again, the
Sarbanes-Oxley act greatly increases the personal risk to
directors and officers at the personal level.

We have decided that the only reasonable course is to sell off
the company's assets to satisfy the corporation's debt and,
if there is any remainder, to make distributions to the
shareholders.  The assets to be auctioned will be Advertising
Commerce Network, 3DStockCharts, and WebBase with each product's
intellectual property, equipment, and operating accounts.  These
are substantially all of the assets of the corporation, other
than the corporate shell and a net operating loss carry-forward
of approximately $8 million.  After the auction, we will also
attempt to sell the corporate shell in a reverse merger.  The
net operating loss carry-forward may have some value to a future
acquirer.

We cannot predict how much, if any, distribution there will be
to shareholders, or what will happen to the shares of existing
shareholders if we are able to sell the corporate shell.

We believe this course is better than putting the company through
formal bankruptcy proceedings, which would incur legal fees that
could not be paid and would benefit no one.

The auction will be held at noon on October 15th, 2003, at the
ExperTelligence offices, at 614 Chapala Street, Santa Barbara,
California.  Interested parties may also participate by conference
call with prior arrangement.

For more information on the assets to be auctioned or on the
corporate shell, please contact me at (805) 962-2558 x114 or by
email at wpu@expertelligence.com.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.

Dated: Septmeber 30, 2003
ExperTelligence, Inc.
By: /s/ William Urschel
Name: William Urschel
Title: CEO


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