05/17/2001 06:03 New Turbine Engine Developed by International Automated Systems IAUS.OB

New Turbine Engine Developed by International Automated Systems Outperforms Traditional Turbine Engines in Geothermal Application Successful Preliminary Tests Pave the Way for Additional Testing at Major Regional Utility's Geothermal Site

AMERICAN FORK, Utah, May 17 /PRNewswire/ -- Neldon Johnson, president and chief executive officer of International Automated Systems, Inc. ["IAS"] (OTC Bulletin Board: IAUS), announced today that, following tests of its turbine engine on a geothermal well conducted during late April, a major regional utility has given IAS the green light to test on its well in southwestern Utah. Based upon preliminary testing, IAS officials are confident that the company's patent-pending turbine used in geothermal applications has the ability to far exceed the performance of traditional turbine engines. Talks with additional regional utilities are ongoing.

According to the International Energy Agency, the world currently consumes approximately 13 trillion kilowatt hours of electricity annually. Power industry experts predict that, based upon a 2 - 3% per annum increase, it will cost over $3 trillion in present dollars to construct the number and size of traditional power plants necessary to meet this growth during the next 10-20 years. This dollar amount does not include the cost of delivery and distribution networks. IAS's turbine engine is designed to lower these costs considerably, in terms of both physical plant and delivery systems, while also decreasing system maintenance costs.

Additionally, process hydrogen represents an equally impressive opportunity for the company. Currently, 128 billion cubic feet of hydrogen is consumed each year in the processing of many consumer products. Environmentally concerned citizens and government officials have advocated the use of hydrogen as a clean-burning, low-emission fuel for automobiles. Until now, however, the cost of its production (approximately $4.00 to $6.00 per gallon) has prohibited widespread use. The IAS process enables the production of hydrogen at rates that would allow its use as a cost-effective alternative fuel, replacing some of the nearly 75 million barrels of petroleum consumed daily worldwide.

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 www.iaus.com.

NOTE: Statements contained in this release that are not strictly historical are forward-looking within the meaning of the safe harbor 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.