February 09, 2006 08:00 AM Eastern Daylight Time <br><br>

IAUS Inks $150 Million Deal for its New Breakthrough Solar Technology, New Low-Cost Solar Energy<br><br>

SALEM, Utah--(BUSINESS WIRE)--Feb. 9, 2006--International Automated Systems Inc. (OTCBB: IAUS) has signed a $150 million purchase and installation contract to install a turnkey 100-megawatt power plant for Solar Renewable Energy-1 LLC of Nevada.<br><br>

The Nevada installation will showcase IAUS' solar collector lenses, which generate steam to its patented turbines for solar thermal-generated power. Low-cost energy produced by IAUS' new solar technology can be used to generate electricity or produce clean fuels such as hydrogen and green methanol (gasoline replacements) at a competitive price. IAUS' unique thin-film solar panels can be produced at a fraction of the cost of today's photovoltaic solar panels.<br><br>

After viewing IAUS' proprietary technology, Charlie Vaughn, PE, former president of Nevada Power's coal subsidiary and former vice president of power generation for Nevada Power, stated, "The turbine with the rocket nozzle is so simple; it can be operated almost at will. I'm surprised someone didn't think of it before now. But, the item that places this solar technology in the same play park with fossil-fuel technologies today is the new solar panel. This is a real breakthrough in cost for renewable energy."<br><br>

The thin acrylic lens focuses the sun like a huge magnifying glass on heat receivers. The solar collector, in combination with IAUS' bladeless turbine, equals lower capital costs and maintenance, plus higher efficiency. This enables IAUS and its customers to compete with the increasing cost in the fossil-fuel energy market ... with low-cost renewable energy.<br><br>

Vaughn is CEO of Solar Renewable Energy-1 LLC. The contract has conditions for the 550-acre project, including finalizing the funding agreement. The power purchase agreement for the solar power is to be consummated and approved by the Public Utility Commission Nevada<br><br>

The state of Nevada legislature requires and mandates that 9% of electricity sales in 2006 be renewable energy. This requirement will continue to increase until 2015, when it reaches 20%. Solar energy will help satisfy this Renewable Portfolio Standard (RPS). Nevada's Lieutenant Governor, Loraine Hunt, has stated that, "Nevada's abundant sunshine has the potential to become the Middle East of renewable energy."<br><br>

About International Automated Systems Inc. (www.iaus.com)<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 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.