Dear IAS Shareholder

This second Newsletter comes to you with our appreciation for your continued support and commitment to IAS. It has been an eventful quarter with many challenges and successes. We have met many of our goals and exceeded others. This 2nd edition of the newsletter has enclosed materials that will be informative and address the central concerns of many of our shareholders, especially regarding DWM. We also include one of our recent News Releases and recommend seeing our Home Page on the Internet for a complete and up-to-date view of IAS News Releases and Announcements (www.iaus.com). If you have E-Mail and would like to receive IAS information through electronic medium, please send us your E-Mail address and you will receive the latest Press Releases, Newsletters, and Company information. As always, we invite and enjoy your phone calls and will respond candidly with the most recent reports available.



We are now taking orders for our Automated Fingerprint Identification Machine (AFIM). We have recently made several improvements on this patented technology to reduce the cost of manufacturing, speed up the time it takes to verify prints, simplify its use and increase the quality and durability of each unit. The AFIM Software Developers Kit is now out in Beta format and AFIM Time Clock will be ready for sale October 1996. Discussions with leading corporations to partner with IAS to mass produce AFIM technology continues at an appropriate pace.


IAS' U-Check store in Salem, Utah is nearing completion on the exterior work. Work inside is ongoing with the IAS' patented Automatic Point of Sale checkout and management systems expected to be operating early 1997. This U-Check will be our showcase for future U-Check store commercialization.


Enclosed is the most comprehensive information to date on DWM available without a non-disclosure agreement. We have tried to make the technical nature and scientific foundation of DWM accessible to the lay reader. There will, after this reading, undoubtedly be questions remaining about how DWM functions. In this document, it is not our intention to demonstrate, in operational detail just how DWM works--to do so would violate the sensitive proprietary nature of this technology. Rather, it is the purpose of the attached papers to demonstrate IAS' understanding of the limitations around current methods of data transmission and to show that we are engaged in an entirely different technological endeavor. Furthermore, given that IAS understands conventional data (modem) transmission technology, you can be assured IAS is neither blindly confined by current technological ceilings nor constrained by its well intended but misinformed critics.

We add with emphasis that the multiple patents on DWM include its massive performance enhancing and integrated use in television, radio, video tape machines, camcorders, VCR's, camera feeds, telephone, computer networking and communications, including high speed modems, and cellular phones. In addition, DWM patents have varied applications, not only with data transmission but also with magnetic data storage such as computer hard drives, floppy drives, etc. DWM is a viable, applicable, exciting and much needed technology. We are working full time on DWM to get this product to the market stage and establish significant profits. Discussions to establish technological and commercial arrangements with leading corporations are now in progress. We are pleased with the interest these companies have shown and will announce the names and substance of these agreements when they are formalized.

On June 27th, 1996 IAS held a Shareholders Press Conference to display several of its patented technologies. The Company demonstrated its patented Point of Sale (POS) and fingerprint (AFIM) technologies to two thousand investors and interested persons. IAS had a DWM hardware prototype in its possession on that date and was prevented by patent counsel form showing it in a public disclosure format. Even prior to June 27th, the IAS DWM hardware prototype was witnessed by various group of experts. Furthermore, on the night of June 27th, the audience was invited to visit IAS to witness the DWM hardware prototype under legal non-disclosure and to bring electronics/telecommunications experts with them to verify the Company's DWM technology. In the last several weeks many of our shareholders and outside authorities have seen the DWM hardware prototype for themselves. Following, is a sample of resulting expert opinion on the viability and authenticity of IAS' DWM technology, and its commercial product potential. Both are under legal non-disclosure and cannot comment further on DWM, how it works, or when DWM will be available. As a courtesy to them for their willingness to make their findings public, please make any and all inquiries directly to IAS (801-763-9965).

Dr. David G. Norton

Dr. David G. Norton was a Co-Founder of the IOmega Corporation, and its V.P. of Research and Development, Manufacturing, and Systems and Administration. He is currently a Senior Consultant to IOmega, and a member of the Board of Directors. Dr. Norton was Director of the Utah Research Institute from 1987-1994 and is currently the Co-Founder CEO and Chairman of the Board of Automated Solutions, Inc., (ASi) and Chairman of the Advisory Board of Utah State University, College of Engineering. In a letter on September 24, 1996, to Neldon Johnson CEO and President of IAS, Dr. Norton writes,

"Thank you for asking me to meet with you recently to further discuss your DWM technology and the potential for ASi to become a beta test site for your modem. I truly look forward to it. As you are aware, ASi with its Adept Processor will be requiring large volumes of data being transferred from major companies to have their data processed at our facility in Ogden. Current transmission rates require far too much valuable processing time in waiting for data to be transmitted. Your DWM technology could significantly reduce our transmission costs and improve our productivity."

"As I mentioned to you in our last meeting, I am willing to help you in whatever small way I can to be of benefit to you to further your technology. I feel strongly that your technology should be advanced and applied in as many potential areas of application as possible."

"With my background of over thirty years in disk and tape drive development, I understood the basics of your DWM theory from your presentation at your June 27th conference. In subsequent meeting, I further understand what you are doing and can see several applications in storage devices alone. As I mentioned to you, your DWM technology is different than any other technology that I am aware of and it appears that you have overcome the difficulties others have encountered in the areas of wave separation. With what you have demonstrated to date I look forward to your accomplishing the objectives you have set forth. In the mean time, I look forward to utilizing your single channel modem in our beta tests as soon as mutual details can be worked out. I wish you well in all of your endeavors."

Dr. Barry M. Lunt

Dr. Barry M. Lunt is a professor of Electronics Engineering Technology at Brigham Young University, and has served 7 years as a design engineer at IBM. Dr. Lunt, an active electrical engineer himself possesses his own patent on, Detection of Cross Linking in Pre-Cured Stage Polymeric Materials by Measuring Their Impedance (US Patent, #5433435).

Following his visit to IAS at the request of an IAS shareholder and after witnessing the DWM hardware prototype, Dr. Lunt stated, "Your [DWM] technology is sound and viable." Dr. Lunt came away convinced though he came in skeptical at first. "They were able to resolve the conflicts I had...you have to know I was not easy on Neldon, I asked some pretty tough questions. Neldon answered every single one of my questions in a straightforward manner. This says a lot about his knowledge and integrity." Dr. Lunt commented further, "I have no vested interest in saying this--I do not own any stock in IAS...yet."

Neldon P. Johnson CEO and President IAS

IDeas International will demonstrate the AFIM technology at the SCANTECH exhibition on November 6-8th at McCormick Place in Chicago, IL. The AFIM has gone through many enhancements lately and these will be included in this demonstration. Contact Mr. Steve Jarvis at (888)634-6437 for a complimentary pass.