DATE: September 2, 1998

Trading Symbol: IHI (VSE)
OTCBB: IHITF (IHITF.OB for Yahoo)

U.S. Patent Announcement
Mr. Roger A. Rached, President of INTERNATIONAL HI-TECH INDUSTRIES INC. (the "Company") is very pleased to announce that the Company has been issued U.S. Patent No. 5,785,904 by the U.S. Patent Office on July 28, 1998 under the title "Method of Securing an Architectural Finish Element to a Surface". This is the second patent to be issued to the Company in the U.S.

International Patent Announcement
The Company is also pleased to announce three additional international patent updates. Patent No. 28 has been issued for the Ghaza Strip covering all patent claims. On July 31, 1998 the patent has also been accepted for grant in Singapore and acceptance has been published in Venezuela.

Canadian Joint Venture Partner Purchases Rights to Expand Territory
Hi-Tech Canada Development Corporation (HTC), the Company's joint venture partner for Ontario, Canada has entered into an agreement with the Company whereby they have purchased the first right of refusal to become joint venture partners with the Company for any future factories contemplated in the Prairies, Atlantic Canada and Quebec. Currently, HTC is the largest independent shareholder in IHI.

Office Construction Demonstration Event a Success
The August 15, 1998 event marking the second anniversary of the ground-breaking ceremony was a complete success. Visitors were able to observe a demonstration of the rapid-construction of the office structure during their visit. A new video documenting the construction of IHI's Factory/Office #1 to date was premiered, and may be ordered by contacting the Company's offices or through the Company's new website at either www.ihiintl.com or www.ihi.ca

Now Hiring - Professional Employees
In preparation for commercial production of the Hi-Tech System, the Company is now posting professional positions on the new website. Please refer to either www.ihiintl.com or www.ihi.ca for details.

Second Quarter Results Announced
During the first half of fiscal 1998, consolidated revenues grew by over 650%. The Company generated $1,354,705 from its licensing activities and generated over $3.7 million from its financing activities. Compared to the same period in 1997, total assets went up from $12.3 million to $17.6 million.

The Company continued to expand its base of strategic joint venture partners, ending the first half of the fiscal year with 11 interim agreements that call for the establishment of up to 16 Hi-Tech Factories.

Total expenses decreased by 13% for the six months ended June 30, 1998, compared to the same period in 1997, notwithstanding increases in the Company's licensing and marketing endeavors.

The financial achievements of the first half of 1998 have reconfirmed the Company's standing as a leader in the development of new building technology. With the completion of the structure for the permanent manufacturing/office facility in mid-August, the Company has maintained its focus and commitment to complete the construction and commence the commercial production of the Hi-Tech System.

The Company also announced that Raventures Inc. will not be retained to provide investor relations, brokerage awareness and related activities. These services will now be provided in-house.

The quarterly report can be downloaded from the Company's new website.

International Hi-Tech Industries Inc. is a company whose principal business is the development and commercialization of a new building system in Canada, and internationally through its subsidiary, IHI International Holdings Ltd.

ON BEHALF OF THE BOARD OF DIRECTORS