International Automated Systems Develops New Engine For Electrical and Vehicular Power Generation<br><br>

AMERICAN FORK, Utah, March 12 Neldon Johnson, president and chief executive officer of International Automated Systems, Inc. ["IAS"]
(OTC Bulletin Board: IAUS), announced today that the company recently, before an audience of nearly 15 people gathered at a Brigham Young University laboratory, completed a successful test run of a prototype turbine engine that represents a breakthrough technology to generate electricity and to power various types of vehicles and machinery.<br><br>

Dependent upon the specific application, IAS's new turbine can be produced at approximately one tenth the size and cost of traditional systems, based upon current cubic-inch-to-power ratios.  It is exceptionally energy efficient, inexpensive, relatively small, durable, and easy to maintain, enabling almost anyone to have a mini power plant for residential use.<br><br>

Although the engine's size and power are scalable to meet both massive and small capacity needs, a 600 hp turbine will likely weigh in at less than 50 lbs., making it a practical, easily adaptable solution to drive various kinds of motor vehicles.  Based upon initial tests, IAS estimates that its turbine engine is capable of more than doubling today's automobile fuel efficiency, while significantly reducing maintenance costs.<br><br>

IAS's new, patent-pending engine, which can easily accommodate virtually any type of fuel, including coal, appears to be immune to internal environmental variations that can plague current turbine systems.<br><br>

"The timing is right for a technology that can help address the energy crisis we currently face.  IAS offers a fast, and inexpensive solution, with a simplicity of production, repair, and maintenance that is truly remarkable," said Johnson.  "The low cost and small size are major factors that can bring us quickly into many domestic and foreign markets, which we feel we can almost immediately dominate."<br><br>

IAS expects to begin production on commercial units of its turbine engine later this year.  According to Johnson, inexpensive electric power systems for homes and business establishments represent a primary target market.<br><br>

International Automated Systems, Inc. develops high-technology products designed for increasing business efficiency, transactional security and access control.  Visit the company's web site at http://www.iaus.com.<br><br>

NOTE: Statements contained in this release that are not strictly historical are forward-looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are made based upon information available as of the date of this release, and the Company assumes no responsibility to update 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.  This is not a solicitation to buy or sell securities and this does not purport to be a complete analysis of the company's financial position.