December 20, 1999<br><br>

Company Press Release
SOURCE: International Automated Systems, Inc.<br><br>

International Automated Systems, Inc. Releases Scientific Argument Supporting Its Patented Digital Wave Modulation (DWM) Technique<br><br>

DWM is Designed to Boost Data Transfer Capacity of Cell Phones, TV, Radio, Camcorders, Local-Area Networks, Modems, Magnetic-Stripe Cards, Etc. Beyond Traditional Bit Rates Without Compression<br><br>

AMERICAN FORK, Utah, Dec. 20 /PRNewswire/ -- Neldon Johnson, president and chief executive officer, International Automated Systems, Inc. (``IAS'') (OTC Bulletin Board: IAUS - news), released today a scientific argument supporting the company's patented digital wave modulation (DWM) techniques. DWM, a pioneering form of modulation that can transmit more data through a specified bandwidth than previously believed to be possible, uses unique digital encoding and filtering to independently manipulate segments of the signal's power to accommodate more information.<br><br>

Designed to boost data transfer capacity beyond traditional bit rates, without compression, DWM provides a major enhancement to data communication via mobile phones, television, radio, data modems, camcorders, and similar communication devices. Unlike traditional modulation methods, DWM's patented filtering technique can separate independently controlled frequencies that are extremely close or even equal to each other, within the same channel.<br><br>

``The advent of DWM provides an exponential increase of bandwidth capacity, paving the way for speed, clarity and convenience never before feasible. We have uncovered entirely new dimensions in radio frequencies (RF) that can be manipulated to represent more data than previously believed to be possible,'' said Johnson. He indicated that the company is currently in talks with electronic industry leaders concerning the manufacture of systems and products based on the new technology. ``The product and technology applications are staggering. We think we have something that is going to change the face of communication forever,'' Johnson said.<br><br>

An illustration of simple DWM technique may be found on International Automated System, Inc.'s corporate web site at www.iaus.com.<br><br>

International Automated Systems, Inc. develops and markets high-technology products designed for increased business efficiency, transactional security and access control.<br><br>

NOTE: Statements contained in this release that are not strictly historical are forward-looking within the meaning of the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. Such statements are made based upon information available to the company at the time, and the company assumes no obligation to update or revise such forward-looking statements. Editors and investors are cautioned that such forward-looking statements invoke risk and uncertainties that may cause the company's actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, demand for the company's product both domestically and abroad, the company's ability to continue to develop its market, general economic conditions, and other factors that may be more fully described in the company's literature and periodic filings with the Securities and Exchange Commission. <br><br>