International Automated Systems Develops New Engine For Electrical and Vehicular Power Generation

    AMERICAN FORK, Utah, March 12 Neldon Johnson, president
and chief executive officer of International Automated Systems, Inc. ["IAS"]
(OTC Bulletin Board: IAUS), announced today that the company recently, before
an audience of nearly 15 people gathered at a Brigham Young University
laboratory, completed a successful test run of a prototype turbine engine that
represents a breakthrough technology to generate electricity and to power
various types of vehicles and machinery.
    Dependent upon the specific application, IAS's new turbine can be produced
at approximately one tenth the size and cost of traditional systems, based
upon current cubic-inch-to-power ratios.  It is exceptionally energy
efficient, inexpensive, relatively small, durable, and easy to maintain,
enabling almost anyone to have a mini power plant for residential use.
Although the engine's size and power are scalable to meet both massive and
small capacity needs, a 600 hp turbine will likely weigh in at less than
50 lbs., making it a practical, easily adaptable solution to drive various
kinds of motor vehicles.  Based upon initial tests, IAS estimates that its
turbine engine is capable of more than doubling today's automobile fuel
efficiency, while significantly reducing maintenance costs.
    IAS's new, patent-pending engine, which can easily accommodate virtually
any type of fuel, including coal, appears to be immune to internal
environmental variations that can plague current turbine systems.
    "The timing is right for a technology that can help address the energy
crisis we currently face.  IAS offers a fast, and inexpensive solution, with a
simplicity of production, repair, and maintenance that is truly remarkable,"
said Johnson.  "The low cost and small size are major factors that can bring
us quickly into many domestic and foreign markets, which we feel we can almost
immediately dominate."
    IAS expects to begin production on commercial units of its turbine engine
later this year.  According to Johnson, inexpensive electric power systems for
homes and business establishments represent a primary target market.
    International Automated Systems, Inc. develops high-technology products
designed for increasing business efficiency, transactional security and access
control.  Visit the company's web site at http://www.iaus.com.

    NOTE: Statements contained in this release that are not strictly
historical are forward-looking within the meaning of the safe harbor clause of
the Private Securities Litigation Reform Act of 1995.  Such forward-looking
statements are made based upon information available as of the date of this
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