August 23, 2007<br><br>

IAUS Believes New Breakthrough Solar Panel Can Change the World<br><br>

Following a successful high-volume run of its new breakthrough solar panels, IAUS has been conducting tests to identify the parameters of its new product. The new panels have delivered an exciting performance that is in line with preliminary expectations.<br><br>

IAUS’s unique thin-film solar panels have a solar insolence transmittance efficiency of nearly 92%- virtually the highest transmittance physically possible of any material. These breakthrough solar panels have shown a conversion of solar energy from the sun into temperatures of over 1,300 degrees F.<br><br>

Initial IAUS data has demonstrated that IAUS’s new solar panels focus as high as 30% more solar energy onto its receiver than traditional solar power trough systems typically achieve. Recent advancements will likely increase this number again to more than 50%. IAUS’s solar panels have an estimated life-span of greater than fifty years when properly maintained, and are inexpensive to replace.<br><br>

IAUS’s unique thin-film solar panel 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. 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>

During its first high-volume run, nearly 1,000 Kilowatts of IAUS’s solar panels were manufactured in a short 24-hour period. 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. The world’s energy market is a staggering $3 trillion per year. This is two times larger than the world's agricultural market. Less than 1% of this energy comes from solar power. Yet, every hour the sun radiates more free energy than the entire human population uses in a whole year.<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.<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.