International Automated Systems, Inc. Files Lawsuit Against Optimal Robotics Corp. For Patent Infringement<br><br>

AMERICAN FORK, Utah, Jan. 7 /PRNewswire/ -- Neldon Johnson, president and chief executive officer, International Automated Systems, Inc. (``IAS''; OTC Bulletin Board: IAUS), announced today that the company has filed a civil action complaint in the United States District Court for the District of Utah Central Division against Optimal Robotics Corp. and PSC, Inc. alleging patent infringement arising under the patent laws of the United States, and more specifically, under Title 35, U.S.C. Sections 271, 281, 283, 284, and 285. <br><br>

The lawsuit concerns patent infringement of United States Patent No. 4,787,467 (the ``Patent'') issued on November 29, 1988, entitled ``Automated Self-Service Checkout System.'' The aforementioned patent is valid, subsisting, in full force and effect, and is owned by plaintiff, pursuant to assignment from the patentee, Neldon P. Johnson. <br><br>

The action seeks relief including, but not limited to, monetary award in an amount to be determined at trial by jury and preliminary and permanent injunctions, enjoining defendants and all other persons or entities in active concert or participation with them or any of them, from further infringement of the Patent.<br><br> 

``While we had sought to avoid litigation, IAS simply cannot sit idly by while it believes its patent is being violated and its rights as defined by the United States Patent and Trademark Office, are ignored,'' said Johnson. ``We would be derelict in our fiduciary responsibility to the company and its shareholders were we to ignore the action of Optimal Robotics Corp. and PSC, Inc., who have even been so bold as to operate in our own backyard. Such action cannot, and will not, be tolerated,'' he said. <br><br>

International Automated Systems, Inc. develops and markets high-technology products designed for increased business efficiency, transactional processing and security and access control.<br><br> 

NOTE: Statements contained in this 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.