Site Secured for Solar Power Breakthrough; New Low-Cost Solar Energy May Replace Gas.

Date: Thursday, September 29 2005

SALEM, Utah -- International Automated Systems Inc. (OTCBB: IAUS) (www.iaus.com) has secured the site for its first 1 Megawatt solar power plant. Once in operation, the company hopes to expand beyond several hundred Megawatts.

Breakthrough solar power technology developed by IAUS may become the first solar to compete with gas. Low-cost energy produced by the company'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.

The plant will be located in Southern California. IAUS expects to complete construction of the solar power plant during the first quarter 2006.

A solar area of only 100 miles squared -- a size of land that equals only 9 percent of the state of Nevada -- can generate enough electricity for the entire United States.

"The discovery of economical solar energy is more valuable than oil," said Neldon Johnson, president and CEO of International Automated Systems Inc. "The sun's energy is free, clean and virtually unlimited. IAS' new solar technology is a discovery of historical proportions that we hope will revolutionize energy production throughout the world."

The world energy market is $3 trillion per year. This $3 trillion does not represent nearly 30% of the world without electricity.

About International Automated Systems Inc. (www.iaus.com)

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. The company, founded by a former AT&T communications engineer, is based in Salem, Utah.

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.