Patent Awarded to International Automated Systems Inc. for Breakthrough Turbine Designed to...<br><br>

Date: Tuesday, April 1 2003 <br><br>

SALEM, Utah--(BUSINESS WIRE)--April 1, 2003 <br><br>

International Automated Systems Inc. (OTCBB: IAUS) ("IAS") announced today that it has been awarded a patent on its new breakthrough technology, a Propulsion Turbine, which some experts believe will be a revolutionary solution to low-cost solar hydrogen fuel production and electrical power generation. <br><br>

IAS has conducted many tests during the past two years at its own testing facilities, at a university laboratory and at various power plant facilities. Conservative numbers demonstrate remarkable advantages in areas of cost, maintenance, size, efficiency and versatility. IAS expects to deploy its new technology into the marketplace this year. <br><br>

IAS believes that for the first time, renewable energy such as thermal solar and geothermal will compete economically with fossil fuels. Utilizing these free and virtually unlimited sources of energy has previously been cost prohibitive. IAS' technology can economically produce environmentally clean electricity, heat and cold air for homes and businesses, and clean hydrogen fuel for automobiles and fuel cells. The new turbine is small enough for many homes and businesses to house their own mini power plant. <br><br>

Matt Trask, an industry expert who is familiar with IAS's new technology and is currently serving the California Energy Commission, stated, "The IAS announcement coincides with what will likely be the greatest opportunity to date for renewable energy projects. California, the fifth largest economy in the world, has mandated that 20 percent (20%) of the power consumed in the state in 2010 be produced from renewable energy sources. Though merely a stated goal by the state legislature, the 20 percent mandate is quickly becoming the policy of the state, with the California Public Utilities Commission and the California Energy Commission putting real teeth behind the policy, prompting the state's utilities to start shopping now for renewable energy providers that can help them meet the state's goals. This means that within seven years, more than 15,000 megawatts of renewable energy resources will need to be developed in order to meet the utilities' demands. <br><br>

"Most valuable to the utilities, and to the state's energy policy makers, are renewable generators that can ramp up to meet the peak electricity demand caused by use of air conditioning in the state's hot summers. Thermal solar plants are ideal for this use, since they are most available right when they are needed the most: when the sun is shining brightly. This need will only become more urgent as the state continues to grow, and deadlines for the renewable power mandate become closer. As has been the experience many times in the past, the companies that are positioning themselves now to gain a piece of that market are the companies most likely to succeed when the market fully opens at the end of the decade."<br><br>

"There are two unique features that give this turbine an unmatched versatility: its physical construction and its use of multiple-phase fluid," said Jack Dean, president of The Hydrogen Renewable Energy Enterprise, LLC -- a Hawaii-based company. "Use of this new Propulsion Turbine technology will offer many cost and energy saving opportunities for the people of Hawaii, and thus move Hawaii closer to a goal of energy self-sufficiency based upon renewable energy and hydrogen." <br><br>

"We are very pleased about this new patent and expect to see many more," said Neldon Johnson, president and CEO of International Automated Systems Inc. "High-altitude desert is one of the United States' greatest untapped energy resources. With the advent of this new technology, our studies show that in the coming future enough clean-hydrogen fuel can be economically produced from the sun in our own desert wastelands to free our nation from dependence on fossil fuels and the poisonous emissions they produce." <br><br>

About Matt Trask <br><br>

Trask has a 25-year background in the energy and environmental arena. His wide range of experience includes power plant operations and electrical engineering, journalism, public outreach programs, technical analysis and independent consultant for energy and environmental endeavors. <br><br>

Trask currently serves the California Energy Commission (CEC). His thorough knowledge of the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA) has enabled him to manage environmental assessments under both laws. In his current capacity as siting project manager, he manages all phases of the CEC's review and assessment process, including potential environmental and technical impacts, of Applications for Certification (AFC) for the construction of new gas-fired power plants. Assessments include the CEQA-equivalent of the Environmental Impact Reports, plus analysis of plant design, reliability, and efficiency, and transmission system effects. <br><br>

About The Hydrogen Renewable Energy Enterprise, LLC <br><br>

The Hydrogen Renewable Energy Enterprise, LLC ("THREE") is a Hawaii-based company that has been actively involved in Hawaii's pioneering energy legislation, which encourages use of the islands' renewable energy. THREE's president, Jack Dean, who has spent more than 35 years in the energy industry, is well known in connection with renewable energy production and an author and co-author of several publications covering subjects ranging from steam turbine principles and water induction, to power plant principles for plant operators and engineers. <br><br>

About International Automated Systems Inc. (www.iaus.com; IAUS:OB) <br><br>

Founded in 1988, International Automated Systems Inc., develops high-technology products for diverse markets such as energy production, wireless communications, consumer purchasing and financial transactions. The company, founded by a former AT&T communications engineer, is based in Salem. <br><br>

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.