Intelligent Optical Systems Retracts ``World's First'' Claim

    TORRANCE, Calif.--Aug. 6, 2001--Intelligent Optical Systems Inc. (IOS), a privately held R&D company specializing in the design and development of proprietary optical communications, monitoring and signal processing technologies, was notified by DCH Technology Inc. (AMEX:DCH), a developer and manufacturer of hydrogen sensor based equipment, that IOS' news releases of May 14, 2001, and June 13, 2001, were inaccurate.
    DCH notified IOS that DCH, in cooperation with the National Renewable Energy Laboratory (NREL), demonstrated a fully functional fiber optic hydrogen sensor in 1997 at the National Hydrogen Association Meeting in Washington, D.C.
    DCH informed IOS that the sensor earned recognition from the Department of Energy's Hydrogen Technical Advisory Panel and that DCH and NREL have U.S. patents for fiber optic hydrogen sensors.
    The IOS news releases were intended to announce the successful test of the IOS prototype in a rocket motor firing at NASA Stennis Space Center, and claimed it to be the "world's first fiber optic hydrogen leak detection system." IOS apologizes to DCH for any confusion or misunderstanding caused by the term "world's first" in its news releases.

    About Intelligent Optical Systems Inc.

    Intelligent Optical Systems Inc. (www.intopsys.com) is a privately held R&D company based in Torrance, that specializes in the design and development of proprietary optical communications, monitoring and signal processing technologies.