Innovative Holdings & Technologies Inc./USTech Materials Subsidiary Begins Shipping PEAR Resin System Samples

    ORLANDO, Fla.--Oct. 17, 2001--Innovative Holdings & Technologies Inc. (OTCBB:IHTL) announced that its USTech Materials Corp. subsidiary has begun providing test samples of its high performance PEAR (PolyEther Amide Resin) system to potential customers. For more information on PEAR, visit USTech Materials Corp. at http://www.innovativeholdings.com/pear.html.
    IHTL's USTech Materials Corp. (USTM) subsidiary licenses the PolyEther Amide Resin (PEAR) high performance resin system on a worldwide basis from Ashland Inc. .
    "The response to our introduction of PEAR into the marketplace has been gratifying," said Helmut Wyzisk, chairman and president of IHTL. "In these initial stages, USTM's strategy is to focus on specific industries: aerospace, automotive and sporting goods. Both private and U.S. Government organizations have shown interest in PEAR, and we intend to capitalize on PEAR's potential to fulfill a wide range of end-use applications.
    "There have been studies done on PEAR by major aerospace companies in the past," Wyzisk said. "They have shown PEAR to be a viable candidate for many high performance applications within this industry sector. Armed with this information, we will work to determine if PEAR's exceptional properties can be applied to the new generation of military and commercial aircraft, ground vehicles and electronic devices."
    USTM's sampling, technical support, early-stage manufacturing capability and R&D are being provided by the Institute for Environmental and Industrial Science (IEIS), Southwest Texas State University.
    PEAR 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.

    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.