Innovative Holdings' USTech Materials Subsidiary Taps Southwest Texas University's IEIS Lab to Spearhead R&D, Customer Support and Manufacturing Operations

    ORLANDO, Fla.--Aug. 6, 2001--Innovative Holdings & Technologies, Inc., (OTCBB:IHTL) announced that its USTech Materials Corporation subsidiary (USTM) will commence its composite resin manufacturing, R&D and customer support operations with the Institute for Environmental and Industrial Science (IEIS) at Southwest Texas University (SWT).
    IHTL's USTech Materials Corporation subsidiary was recently granted a worldwide licensing agreement with Ashland, Inc. for the PolyEther Amide Resin (PEAR) high performance resin system.
    According to Dr. Joseph H. Koo, ScD, Director of IEIS, "We will be assisting USTM with PEAR resin R&D/product development, product sampling and technical support. IEIS will also manufacture specialized commercial quantities of PEAR. Since we have past experience with the development of PEAR, we can effectively assist USTM to deliver PEAR to potential customers within targeted markets."
    "Dr. Koo and IEIS bring extensive experience in resin development for polymer matrix composites, and will provide the manufacturing, customer support and R&D base to assist USTM in the ongoing development of the PEAR high performance resin system," said Helmut Wyzisk, Chairman & President of Innovative Holdings & Technologies, Inc. "Dr. Koo and his associates will be invaluable in the critical role of assisting USTM in identifying the most effective and profitable applications for PEAR."
    PEAR high performance resins represent a new generation of advanced polymer resins that show promise as superior replacements for traditional, and more costly, fabricating materials. It has many potential applications within industries such as aerospace, automotive, oil & gas, electronic, electrical and sports equipment.
    Innovative Holdings & Technologies, Inc. identifies, acquires and incubates early stage niche technology companies with outstanding growth potential.
    In other news, IHTL has relocated its offices and changed contact numbers: Innovative Holdings & Technologies, Inc., 300 South Orange Avenue, Suite 1500, Orlando FL 32801, 407-244-3756, fax 407-843-4315.

    This press release discusses certain matters that may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of Innovative Holdings & Technologies, Inc/USTech Materials Corporation. ("the Company") and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to: the ability of the Company to raise necessary capital; to attract and retain effective management; the lack of viable commercial applications or the failure of third-party contractors to perform their contractual obligations. Prospective investors are also referred to the other risks identified from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.