Management is committed to enhancing the financial return on the Company's $19.9 million of assets, primarily invested in its nearly completed permanent manufacturing facility ("the Facility") located in Delta, British Columbia and patents. All U.S. patents have now been issued for the Technology.

The Company incurred a net loss of $1.5 million for the year ended December 31, 1998 as compared to a net loss of $3.2 million for the previous year. Steps were undertaken to reduce overhead and other expenses not essential for the completion of the Facility. General expenses, legal expenses and travel and business promotion expenses decreased; Directors' and officers' fees, consulting fees, audit and accounting costs, property taxes and product representation costs have increased as the Company moves towards the commercial production of its products.

The Company will issue a news release the first week of June covering financial and factory progress updates.

New Patent Announcements
Mr. Roger A. Rached, President of the Company is very pleased to announce that, further to earlier news releases, patents have now been issued for the Russian Federation, Macedonia and Venezuela. With the announced United States patents, the following countries are also covered: American Samoa, Guam, Puerto Rico and the US Virgin Islands. New patents have been issued for Paraguay, Kazakhstan and Madagascar. Patent protection has also been obtained for Bahrain.

Vancouver Show Home Update
The Company's Vancouver Show Home that was on display at the 1999 BC Home & Garden Show, will be remodeled and enlarged to 5,000 square feet (including an IHI basement and garage). "The opening will be on 9/9/99 for the Company 's Annual General Meeting and the Media whom we thank greatly for their coverage of the February show," said Mr. Roger A. Rached. "This will be a completely renovated unit that will show the flexibility of the Hi-Tech System for accepting modifications." The home will be open to the public and international delegations beginning 9/10/99.

It is with deep sadness that the Company notes the passing of Chairman of the Board and Director, Gerald Hamilton. Mr. Hamilton was an internationally acclaimed architect, planner and land use consultant responsible for hundreds of high-rise and low-rise residential and commercial projects in Vancouver and other parts of the world. In addition to being a member of the Royal Architectural Institute of Canada and the Architectural Institute of British Columbia, Mr. Hamilton was also a Fellow of the British Institute of Architects and an honorary member of the Mexican Society of Architects. He was a Freeman of the City of London and a Knight of the Order of St. John. As Chairman of the Company, Mr. Hamilton introduced the Hi-Tech System to his many large developer contacts in Canada and abroad. "Gerald's vision led him to become actively involved in our Company," said President, Roger Rached. "His tireless efforts on behalf of IHI will result in many future projects for us, and we will always be grateful for the time he devoted to us. In his memory, his contacts will always have a priority status with IHI. May God rest his soul in peace." Mr. Hamilton was 75 years old.

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