The President of International Hi-Tech Industries, Inc. ("the Company") is very pleased to report that the Company has continued to demonstrate the attractiveness of its Technology and its expert-oriented business. Revenue from licencing activities was $1,187,820 for the second quarter of fiscal 1999. The Company also generated $2,807,311 from its financing activities during this period. The Company continued to expand its base of strategic joint venture partners worldwide, ending the second quarter of the fiscal year with 23 interim agreements that call for the establishment of up to 30 Hi-Tech Factories.

Management is committed to enhancing the financial return on the Company's $22.2 million of assets (as compared to $17.5 million for June 30, 1998), primarily by investing in its nearly completed permanent manufacturing facility ("the Facility") located in Delta, British Columbia and by securing its international patents.

Directors' and officers' fees, consulting fees, legal costs, general expenses, insurance, repair and maintenance costs, interest and foreign exchange expenses have increased as the Company moves towards commercial production and therefore the Company had a net loss of $548,175 for the six months ended June 30, 1999, as compared to a net loss of $303,946 for the six months ended June 30, 1998.

The President, Mr. Roger A. Rached is pleased to announce that Dr. Rene A. Rached, P.Eng. has consented to act as Executive Officer of the Company. Dr. Rached received his doctorate degree in engineering from Stanford University and was both a professor in the Engineering Faculty of the Univeristy of British Columbia and the American University of Beirut. Dr. Rached is also President of Garmeco Canada � International Consulting Engineers Ltd. Other officers of the Company are Mr. Henri de La Tour � Vice-President, International Public Relations, Mr. Yoshi Miyake � Officer, International Development Committee, Mr. Stephen D. Wortley � Secretary and Ms. Chandra Woodhouse � Assistant Secretary.

All electrical and mechanical systems are now installed and commissioned. The final painting for the interior of the factory is in progress and architectural detailing is also underway. An additional foundation pad is being added to the exterior of the facility in preparation for the installation of the fully-computerized state-of-the-art concrete batching plant in January. The foundation will accommodate the 80-foot high, 180-foot wide and 30-foot deep batching plant.

Mr. Roger A. Rached, is very pleased to announce that a number of patents have been issued: Patent No. 2121044 for the Russian Federation; patent No. 226650 for South Korea; patent No. 22540 for Cuba; patent No. 5720 for Lebanon; patent No. 1979-94 for Venezuela; patent No. 74899 for Panama; patent No. 6937 for Kazakhstan; patent No. 900466 for Macedonia. Furthermore, in addition to the group patent No. AP 534 that has been issued by ARIPO, individual patents have now been issued for the following countries: Gambia, Ghana, Kenya, Lesotho, Botswana, Swaziland, Uganda, Zambia and Zimbabwe.

A decision to accept has been granted by Vietnam.

Patents have also been allowed for Canada, Poland, Kyrgyzstan and Columbia.

In order to better serve the Canadian market, and most particularly Eastern Canada, International Hi-Tech Industries, Inc. has retained The Bullen Group in Toronto, Canada to provide Investor Relations services to the Company. Discussions are underway with international firms to provide similar services for other regions, especially in the U.S. In addition, two specialist consultants have been retained: Hawthorne Consulting brings expertise in government relations; product sales and marketing services are now provided by InMarketing Consulting.

The Company�s Show Home at 846 West King Edward Avenue in Vancouver is currently on display. Open for viewing by appointment, the home is presently of greatest interest to visitors wishing to learn more about the technical aspects of the Hi-Tech System and others who would like to see a live renovation project demonstrating the flexibility of the Hi-Tech System. With the completion of finishing details, a reopening ceremony will be held after which the Show Home will be open for display on a regular basis for viewing and in conjunction with a sales centre.

Over 500,000 interested parties have now visited the show home in Luxembourg over a period of 5 years. It is worth noting that the IHI Luxembourg show home has been partially re-furbished by donation from major European firms to demonstrate their products and how they can be used in conjunction with the Hi-Tech System.

The Company, with the assistance of certain joint venture partners and major shareholders, is negotiating an optimal solution to purchase the first production line (for the Company�s Delta manufacturing facility) after securing the automated batching plant in order to start supplying the ever-increasing demand for the Hi-Tech System.

On an on-going basis, the Company is signing alliance agreements with international equipment manufacturers and raw material suppliers to optimize the delivery, efficiency, mutual technical expertise and hence the profitability of the Company on a worldwide basis.

We invite the thousands of daily visitors to our website to revisit our site which will be updated as of November 15, 1999.

"Roger A. Rached"

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ROGER A. RACHED, PRESIDENT

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