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NEWS RELEASE
FOR IMMEDIATE
RELEASE IHI Progress Report - Quarterly Results Showing 21% Increase in Assets Batching Plant Complete
Mr. Roger A. Rached, President of INTERNATIONAL HI-TECH INDUSTRIES INC. (the "Company" or " IHI") is proud to announce that the company's batching plant is fully installed and operational. The 80-foot high fully-computerized state-of-the-art plant has been designed to handle the future requirements of a second factory on the Delta site, and represents the first of three key links in the completion of the Company's advanced manufacturing facility - expected by the end of December, 2000.
Annual General Meeting and Production Equipment Update
The company's Annual General Meeting was held at the Hopcott Road factory on August 15, 2000. All resolutions were passed unanimously and a detailed management discussion followed. IHI's strategic partners, major equipment suppliers T.H. Lemont and Fanuc Robotics, outlined the anticipated testing and delivery schedule of the company's automated production system, namely mid-October for the steel rolling line and mid-November, 2000 for the robotics. As announced in the company's June 2 News Release the steel rolling line represents the first stage in the verticalization of the IHI manufacturing process: by producing the steel panel framing in-house, profit margins and production efficiencies will be enhanced. IHI's long-term plans call for further vertical integration of various components of the building technology.
Website Updates (www.ihiintl.com or www.ihi.ca)
As announced in the Company's July 25 News Release, IHI's website will provide more frequent updates on the ongoing installation of the Company's Delta factory effective September 18, 2000. Investors and interested parties will be able to see progress as the company's advanced facility nears completion. Showhome updates will also be posted.
Second Quarter Results Announced
The President is very pleased to report that the Company has continued to demonstrate the attractiveness of its Technology and its export-oriented business. Despite the poor British Columbia economy, during the second quarter of fiscal 2000 the Company generated over $7.4 million from its capital raising activities. Management is committed to enhancing the financial return on the Corporation's $27.7 million of assets, which have increased by $4.7 million or 21% since June 30, 1999. The Corporation incurred a net loss of $2,373,640 for the six months ended June 30, 2000, as compared to a net loss of $630,114 for the six months ended June 30, 1999, principally because the Corporation completed its initial round of license agreements last year, and also because of the increased working capital requirements prior to commercial production, as well as increased financial and legal costs. The Company intends to expand its base of interim license agreements by commencing a second round of licensing activities when commercial production is achieved. It is expected that the second round of interim license agreements will call for increased license fees. Updates will be posted soon.
Patent News
Mr. Rached is pleased to announce that a second African Regional Industrial Property organization (ARIPO) patent has been reissued as Patent No. AP688, and a divisional ARIPO Patent No.748 has been issued, both covering Malawi and Sudan. A second divisional patent application has been issued in Poland as Patent No. 178128; in addition, a patent has been accepted in Moldavia and allowed in Romania.
This release contains forward-looking statements. These statements
are subject to certain risks and uncertainties that could cause actual
results to differ materially from those anticipated in the forward looking
statements. Readers should not place undue reliance on the forward-looking
statements, which reflect the management's view only as of the date hereof.
The Company undertakes no obligations to publicly revise these forward-looking
statements to reflect subsequent events or circumstances. ON BEHALF OF THE BOARD OF DIRECTORS "Roger A.
Rached"
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