The President of International Hi-Tech Industries Inc. (the Company), Mr. Roger A. Rached, is very pleased to announce better than expected results. During the first nine months of fiscal 1998, consolidated revenues grew by over 700%. The Company generated $2,476,822 from its licensing activities and generated over $5.4 million from its financing activities. Management is committed to enhancing the financial return on the Company's $18.7 million of assets, primarily invested in the permanent manufacturing facility located in Delta, British Columbia.

The Company either directly or through IHI-International Holdings Ltd. (IHI-International) entered into six interim agreements and received irrevocable down payments during the first nine months of fiscal 1998 for the establishment of up to 10 joint venture factories. The Company will continue to pursue strategic alliances that increase revenue and that are compatible with the corporate culture.

Effective March 1, 1999 the contribution by Joint Venture partners (other than the licensing fees) for the 49% interest in the new Joint Venture factories will increase to $11,000,000 USD. Agreements in place prior to that date will not be affected.

Due to an increase in the Company's activities, total expenses increased by approximately 10% to $3,196,621 for the nine months ending September 30, 1998 compared to the same period in 1997, while the working capital deficit for the period was reduced by 97% from $2,382,398 to $71,158.

The financial achievements through the third quarter of 1998 have reconfirmed the Company's standing as a leader in the development of new building technology. The outstanding efforts of the Company's directors, employees and technical and financial advisors, combined with the sustained growth of the need for affordable housing, have helped to bring the Company to a point where it is on the brink of commercial production.

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

IHI Featured on BTV in Canada

The Company is pleased to announce that prior to its commercial production, BTV (Business Television) will feature the Company and the Hi-Tech System on a show to be aired in Canada on the following networks and dates in December 1998 (EST):

• ONtv -5th(12:30pm). In addition, ONtv will be re-broadcasting the show three more times in their winter, spring and summer seasons. The actual dates are to be announced by ONtv.
• PRIME TV -6th(6:30pm;11:30pm); 11th(9:00am); 12th(6:30pm;7:00pm); 13th(6:30pm).

Private Placements

The Company announces that it has received $332,000 for three private placements for a total of 280,000 Units at a price of $1.15 per Unit (each Unit consists of one common share and one non-transferable share purchase warrant entitling the holder thereof to purchase one additional common share at a price of $1.15 if exercised in the first year or at a price of $1.32 per share if exercised in the second year). The total proceeds will be used for purchase of equipment for the Hopcott Road factory and general working capital.

A finder's fee in the amount of $32,200 will be paid from the proceeds of the private placements.

The private placements are subject to regulatory acceptance and, if applicable, shareholder approval.

The Company also announces the closing of an additional three private placements announced on September 9, 1998 for 86,957, 84,348 and 86,957 Units at $1.15 per unit. All common shares issued under these private placements together with any common shares issuable on exercise of the share purchase warrants have a hold period expiring the 16th, 19th and 22nd of January 1999 respectively. The total proceeds of $297,000 received by the Company will be used for purchasing of equipment for the Company's Hopcott Road factory and for general working capital.

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
"ROGER A. RACHED"
ROGER A. RACHED, PRESIDENT