July 23, 2005<br><br>

Solar Power Breakthrough  --  New Low-Cost Solar Energy May Replace Gas<br><br>

Will solar energy ever overtake the oil market? The solar revolution may be closer than you think.<br><br>

Breakthrough solar power technology developed by International Automated Systems, Inc. [IAUS: OTCBB] may become the first solar to compete with gas. Low-cost energy produced by IAUS’s new patented and patent-pending solar technology can be used to generate electricity or produce clean fuels such as hydrogen and green methanol (gasoline replacements) at a competitive price.<br><br>

IAUS’s unique thin-film solar panels can be produced at a fraction of the cost of today's photovoltaic solar panels. IAUS is on schedule to begin mass production of its solar panels by September 2005. Once in production, IAUS will be able to turn out nearly 200 megawatts of solar panels yearly. Nearly ten times greater capacity than a $100 million photovoltaic fabrication plant.<br><br>

A solar area of only 100 miles squared- a size of land that equals only nine percent (9%) of the state of Nevada- can generate enough electricity for the entire United States.<br><br>

"The discovery of economical solar energy is more valuable than oil," said Neldon Johnson, President and CEO of International Automated Systems, Inc. "The sun’s energy is free, clean and virtually unlimited. IAS’s new solar technology is a discovery of historical proportions that we hope will revolutionize energy production throughout the world."<br><br>

The world energy market is $3 trillion dollars per year. This $3 trillion does not represent nearly 30% of the world without electricity.<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, Utah.<br><br>

Note: Statements contained in this update 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.