September 19, 2002
Dear Shareholder,
We have made wonderful progress on every front. The following is an update on some of our projects:
OrderXCEL
We have been working with KFC's information systems department and taking steps to make the OrderXCEL compatible with the existing system. We are very pleased and excited about the progress.
We also have been working with other restaurant companies and anticipate good news in the immediate future.
Navajo Mountain
The Navajo Mountain project has been steadily moving forward. One of the last pieces to be completed on this project is the solar collector component. The design we are using is unique to the market and proprietary to IAS. It is very lightweight, inexpensive and easy to mass-produce.
A production test run of the collector is anticipated to happen within 2-3 weeks. This run is intended to calibrate the manufacturer's process of mass-producing our collectors.
IAS Turbine
Some have requested a comparison of our solar power technology to late photovoltaic (PV) solar developments. The following is a quick summery:
PV systems are 10%-15% efficient. They do not produce thermal energy. Their excess power can only be stored by using a battery, which is extremely expensive. The plant to manufacture even a small number of PV panels per year costs nearly a hundred million dollars.
IAS's system produces both electricity and thermal energy. This thermal energy can be used to either heat or chill. By utilizing this thermal energy along with electricity, the efficiency can likely reach as high as 70%-80%.
Excess thermal energy can be stored in a storage component to produce electricity during the night or on cloudy days. A thermal storage component costs significantly less than a battery, and it will last a lifetime, whereas an expensive battery will usually last only about five years.
The cost of mass-producing IAS's solar power is less expensive than even the latest PV developments. Relative to PV plant design, the cost of setting up a plant for mass-production of IAS's technology is only a fraction of the cost.
IAS Energy Division
IAS has been in discussions with professionals within the power industry who are interested in directing the power division of IAS. This extension of the company will likely be a division or a subsidiary of IAS.
The professionals with whom IAS has been in talks with have had years of experience in power marketing, power plant design, power plant management, site planning, certification, government legislation, and State of California energy laws.
Thank you for your support.
Sincerely,
Neldon Johnson
President, CEO