March 29, 2001 <br><br>

<b>New Turbine Engine Developed by International Automated Systems Operates at Approximately 70% Work Efficiency</b> <br><br>

Company Estimates Cost of 1 Cent per Kilowatt from Geothermal Sources  <br><br>

AMERICAN FORK, Utah, March 29 /PRNewswire/ -- Neldon Johnson, president and chief executive officer of International Automated Systems, Inc. ["IAS"] (OTC Bulletin Board: IAUS), announced today that, while low-temperature, low-pressure testing continues at Brigham Young University, initial data collected by the company concerning high-temperature, high-pressure applications indicate the new turbine engine developed by IAS yields approximately 70% work efficiency, representing a major improvement over traditional turbine engines.  <br><br>

The simplicity, scalability and relatively low cost of the IAS system make it economically feasible to bank an indefinite number of units together in parallel, providing a flexible energy source to meet fluctuating power demands. "IAS has designed its turbine engine as the perfect solution to meet normal and peak energy demands with a system that is both versatile and efficient," said Johnson.  <br><br>

IAS is currently in discussion with several large regional power producers and with key legislators and decision makers, including the Governors of several western states and members of the Bush administration, all of whom seek to identify potential solutions to the California power crisis, especially as it relates to national security issues.  <br><br>

Johnson says that IAS's turbine appears to be ideal for geothermal electric power derived from natural hot water or hot steam reservoirs under the Earth's surface. Research indicates there is more than 27 more times more energy available from these "hot spots" in the United States than the entire country could use. However, this vast source of renewable energy remains relatively untapped due to the expense of using traditional steam systems to exploit this natural and environmentally friendly resource.  <br><br>

With IAS's less expensive and more robust engine, the company estimates that it can produce electricity from geothermal power generation at a cost of less than 1 cent per kilowatt. This is significantly lower than today's average cost. Producing hydrogen at less than half the cost of regular gasoline, the IAS system obviates the major economic impediments to fuel cell automobiles and other fuel cell technologies. "Practical, affordable, adaptable, and featuring relatively light weight and low maintenance, the IAS system is designed to play a significant role in lessening worldwide dependence on fossil fuels and reducing harmful emissions resulting from conventional combustion engines," said Johnson. The company expects to make units available commercially later this year.  <br><br>

International Automated Systems, Inc. develops high-technology products designed for increasing business efficiency, transactional security and accesscontrol. 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 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.  <br><br>

SOURCE International Automated Systems, Inc.