April 11, 2001
Initially, it was a difficult decision for the company to begin development on its new turbine engine project. IAS has already been
pressing to finish a number of other products. However, the prospect of this new technology was worth further consideration. The electric power and hydrogen fuel markets are enormous. The possibility of an inexpensive tool to produce energy could not be overlooked. With great effort, IAS completed its test model in a short amount of time, and thus far, its performance has met the companyís expectations.
The timing of this project could not have been better. Desperate circumstances from the current power crisis have opened doors faster than
usual. Even more amazing is the compatibility with geothermal energy. There are a vast number of available and untapped geothermal energy sites throughout the world that have traditionally been too expensive and difficult to exploit. In the U.S. alone there is an estimated 27 times more geothermal energy than the entire country can use.
Current turbines are large, extremely expensive, require ultra high tolerances, and are highly temperamental. When used with geothermal
energy, high-pressure and high-temperature water from under the earthís surface must be flashed and steam must be separated so that only the highest quality of steam will pass through the expensive blades of a traditional turbine. Condensation, high impact from particles, and scaling can all potentially cause serious damage to todayís expensive turbines. These turbines also require several large (many stories high) cooling towers to create a vacuum which assists in drawing out the steam through the turbine.
IASís new turbine does not have expensive and temperamental blades. It is robust, easy to clean and maintain, and it is remarkably inexpensive. It can utilize a lower quality steam and based upon preliminary tests, it can even operate on high-pressure high-temperature water directly from a geothermal well without having to flash it first and separate the steam. IASís turbine can also be staged together in parallel where each turbine is used only when necessary. And, most important, it does not need the expensive and sophisticated cooling towers.
IAS is in discussions with various companies and organizations for the purpose of developing partnerships that will immediately assist the
company in building geothermal power plants throughout the world both to generate electricity and to produce hydrogen. Based upon current studies, IAS estimates that a geothermal power plant can be built at less than one-tenth of the cost of one of todayís traditional operations by utilizing its new technology. This low cost is remarkable.
Very few changes are needed to bring IASís turbine into production. The company is poised to move as quickly as the right partners can be solidified. We are exceptionally excited about the possibility of capturing a residual income from reusable energy. The potential is
Neldon Johnson, President
Chief Executive Officer
NOTE: Statements contained in this letter 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. 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 an analysis of the companyís financial position.