One of California's Highest Grossing Kentucky Fried Chicken Restaurants Will Showcase...

Date: Wednesday, July 17 2002

Business Editors

International Automated Systems Inc. ("IAS") (IAUS.OB) Wednesday announced that it has demonstrated its revolutionary self-service fast-food express lanes, called OrderXCEL, to Harman's Management Corp. -- the single largest franchise owner of Yum! Brands Inc.

Harman's Management Corp. owns approximately 375 KFC, Taco Bell, Pizza Hut and A&W franchises.

After reviewing IAS' new breakthrough technology, Harman's Management Corp. was impressed, and has agreed to test the system in one of the company's highest grossing restaurants, located in Sacramento, Calif.

IAS' OrderXCEL is a patent-pending technology, which incorporates IAS' patented automated biometric fingerprint technology. Using the OrderXCEL, 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 need for a counterperson to take the transaction.

Decisive customers who wish to avoid traditional lines at the counter can use this express service without increasing the labor costs of the restaurant.

"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 multiple-franchisee owner with the fast-food chain.

"With OrderXCEL, 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."

OrderXCEL has an estimated potential market of nearly $11 billion in the United States, and builds on IAS' pioneering work with self-service supermarket scanners and automated biometric technology. IAS holds one of the first patents on both self-cashiering and automated biometric systems.

IAS' patented biometric technology can automatically digitize a fingerprint small enough to fit onto the magnetic stripe of a credit card. This product has widespread potential in many industries, including homeland security and airport security.

About International Automated Systems Inc. (

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.

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.