Februrary 13, 2007<br><br>

Solar Power Breakthrough --  IAUS Hits Milestone Previously Thought to be Impossible<br><br>

SALEM, UTAH- International Automated Systems, Inc. [IAUS.OB] [IAUS: OTCBB] announced today that it has successfully finished its first high-volume run of its new breakthrough solar panels. Nearly 1,000 Kilowatts of IAUS’s solar panels were manufactured in a short 24-hour run. On a 24/7 operating schedule, an estimated 350 Megawatts of IAUS panels can be produced annually. In comparison, a traditional photovoltaic (PV) solar module manufacturing plant with a yearly capacity equal to IAUS would cost an estimated $840 Million to construct.<br><br>

IAUS’s unique thin-film solar lens can be produced at a fraction of the cost of today’s traditional photovoltaic solar panels. IAUS believes its new product is the first solar power technology with legitimate potential to compete with gas and other fossil fuels in the immediate future. 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. Many experts had predicted that no solar power technology would likely accomplish this milestone before the year 2025.<br><br>

IAUS plans to quickly expand its annual solar panel production capacity this year to 1 Gigawatt, which is enough to supply an estimated $2 Billion in sales per year.<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. IAUS’s new solar technology is a discovery of historic 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 that exists without electricity.<br><br>

About International Automated Systems, Inc. (www.iaus.com ; IAUS:OB)
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.