EXHIBIT (a) (5)

                             [Radiant Letterhead]

________________, 2001


Dear Employee Option Holder:

     On behalf of Radiant Systems, Inc. (the "Company"), I am writing to provide
you with the results of the Company's recent offer to exchange (the "Offer")
outstanding options granted under our Amended and Restated 1995 Stock Option
Plan (the "Plan") granted on or after December 20, 1995, (the "Options") for new
options the Company will grant under the Plan (the "New Options"). All
capitalized terms used in this letter which are not defined herein have the
meanings given to those terms in the letter of transmittal (the "Letter of
Transmittal") accompanying the Company's offer to exchange dated October 24,
2001 (the "Offer of Exchange").

     The Offer expired at 12:00 midnight, Eastern time, on November 21, 2001.
Promptly following the expiration of the Offer and pursuant to the terms and
conditions of the Offer, the Company accepted for exchange Options tendered to
it for a total of _________ shares of Common Stock and cancelled all such
Options. The Company has accepted for exchange and cancelled the number of
Options tendered by you equal to the number of Option Shares set forth on
Attachment A to this letter.
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     In accordance with the terms and subject to the conditions of the Offer,
you will have the right to receive New Options under the Plan for the number of
shares of Common Stock which is equal to the number of Option Shares set forth
on Attachment A, as adjusted for any stock splits, stock dividends and similar
   ------------
events.  Also in accordance with the terms of the Offer, the terms and
conditions of the New Options will be substantially the same as the terms and
conditions of the Options you tendered for exchange, except as specified in the
Offer, and will include the following terms:

     .    The per share exercise price under the New Options will equal the fair
          market value of the Common Stock on the date the Company grants the
          New Options, as determined the last reported sale price of the Common
          Stock on the Nasdaq National Market on the date the Company grants the
          New Options; and

     .    The vesting schedule of the New Options generally will vest in one-
          third increments on the first three anniversaries of the grant date.

     In accordance with the terms of the Offer, the Company will grant you the
New Options on May 29, 2002. At the time, as described in the Offer to Exchange,
you will receive a New Option agreement executed by the Company.

     In accordance with the terms of the Offer, and as provided in the Plan, you
must be an employee of the Company or one of our subsidiaries from the date you
tendered options through


the New Option grant date in order to receive your New Options. If you do not
remain an employee, you will not receive New Options or any other consideration
for the Options tendered by you and cancelled by the Company.

     If you have any questions about your rights in connection with the grant of
New Options, please contact Hilary Love, Stock Plan Administrator, at telephone:
(770) 576-6337, facsimile: (770) 360-7589 or e-mail: hlove@radiantsystems.com.
                                                     ------------------------

                              Sincerely,



                              /s/  Erez Goren
                              --------------------------------------------
                              Erez Goren, Chief Executive Officer


                                  ATTACHMENT A

                            (Name of Option Holder)




                               Number of Option
  Total Number of             Shares Subject to            Exercise Price of
   Option Shares               Tendered Option              Tendered Option            Date of Acceptance of
 Subject to Option          Accepted for Exchange        Accepted for Exchange                Tender
---------------------       ---------------------        ---------------------         -----------------------
                                                                              

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---------------------       ---------------------        ---------------------         -----------------------
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Number of Option Shares Subject to New Options to be Granted to you on or about
May 29, 2002: _________________.