October 24, 2001

Melissa Toteda or
Lauren Stein
Ruder Finn
(415) 541-0750

Fast-Food Industry Executives Give High Marks to International Automated Systems (IAUS:OB) New Order, Pay & Go Self-Service System

Salem, Utah October 24, 2001

In a first-ever demonstration of a new, self-service system that could change the way consumers order, pay, and pick up fast-food, International Automated Systems, Inc. (IAUS:OB) has impressed industry executives.

While consumers have embraced self-service in many areas of their lives, including buying cars, banking and using supermarket check-outs, IAS's new, patent-pending technology represents the first time self-service has been made available to fast-food chains.

Using Order, Pay & Go, which is roughly the size of a large cash register, a fast-food customer can enter an order on a touch-pad screen and pay with cash, check, credit or debit card all without the assistance of a counterperson.

Providing the customer with this self-service experience increases employee productivity and efficiency. In the words of one long-time fast-food industry consultant, Order, Pay & Go could enable customers to pay and pick up their orders in 30 seconds or less. The system can also greatly improve the speed and accuracy of a restaurant s end-of-shift and end-of-day reconciliation.

Several fast-food companies have been briefed on the Order, Pay & Go system, including Kentucky Fried Chicken (KFC), one of the largest, global restaurant chains. KFC restaurants could potentially benefit from the system, according to the executives who met with International Automated Systems (IAS). The Salem, Utah company is in the process of turning several of its patented and patented-pending technologies into products.

I think the IAS system has real potential for fast-food restaurants, because the technology enables employees to focus on giving the customers what they want as quickly as possible, said Roger Hamblin, a consultant to KFC and former franchisee owner within the fast-food chain. With Order, Pay & Go, a restaurant can serve more customers in less time, without additional counterpeople. We think the system could allow customers to order and pick up their food in less than half a minute that's not only great service, but a great traffic-builder for a restaurant.

KFC, according to Hamblin, continues to explore use of the Order, Pay & Go system and discussions with IAS continue.

I have no doubt that this is the way of the future, said Jim Beglin, regional director of Harman s Management Corporation, the single largest franchise owner of the Tricon Global Restaurant Company. This technology is very exciting. I believe that it is not a matter of if the technology will be implemented, but when, and who will be the first to do so. Harman's Management Corporation owns approximately 365 KFC, A&W, Taco Bell and Pizza Hut franchises.

Order, Pay & Go builds on IAS's pioneering work with supermarket scanners. IAS was one of the first companies to develop an automated supermarket and holds one of the first patents for self-cashier technology. The scanner system, called U-Check, accepts checks as well as debit and credit cards, and has been in use for the past three years. The check payment option is made possible through IAS's patented biometrics technology, which uses a customer's fingerprint to verify a person's identity.

IAS extended that capability to Order, Pay & Go with the addition of technology to accept and dispense cash, including coins.

Order, Pay & Go allows a fast-food restaurant to free up self-service lines for customers, without adding more employees or slowing down the service, said Randy Johnson, vice president of new business development for IAS.

About International Automated Systems, Inc. (www.iaus.com; IAUS:OB)
Founded in 1988, International Automated Systems, Inc., develops high-technology products for diverse markets such as energy production, wireless communications, consumer self-service purchasing and financial transactions. The company, founded by a former AT&T communications engineer, is based in Salem, Utah.

Note: Statements contained in this press 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.