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      International Automated Systems, Inc. Form S-8
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 11pt; FONT-FAMILY: Times New Roman">Registration
      No. 33-________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">As
      filed
      with the Securities and Exchange Commission on June 30, 2005</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">WASHINGTON,
      D.C. 20549</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>F<font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">O</font>RM
      S-8</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Registration
      Statement Under the Securities Act of 1933</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong><u>INTERNATIONAL
      AUTOMATED SYSTEMS, INC. </u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Exact
      name of registrant as specified in its charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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            <td valign="top" width="40%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Utah</u></font></div>
            </td>
            <td valign="top" width="40%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>87-0447580</u></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(State
                of Incorporation)</font></div>
            </td>
            <td valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(I.R.S.
                Employer Identification No.)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>326
      North State Road 198, Salem, Utah 84653 (801) 400-0678 </u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Address,
      including zip code, and telephone number, including</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">area
      code, of registrant's principal executive offices)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>Advisor
      Compensation Plan</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Full
      title of the plan)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Neldon
      Johnson, President, International Automated Systems, Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>326
      North State Road 198, Salem, Utah 84653 (801) 400-0678</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Name,
      address, including zip code, and telephone number, including area code, of
      agent
      for service of process)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
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            <td colspan="6" valign="top" width="83%" style="BORDER-BOTTOM: #000000 double">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>CALCULATION
                OF REGISTRATION FEE</strong></font></div>
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          <tr>
            <td align="left" colspan="2" valign="bottom" width="19%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Title
                of Each Class of</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Securities
                to be Registered</font></div>
            </td>
            <td align="left" valign="bottom" width="16%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Proposed
                Amount</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;to
                be Registered</font></div>
            </td>
            <td align="left" valign="bottom" width="17%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Proposed
                Maximum</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Offering
                Price Per Unit</font></div>
            </td>
            <td align="left" valign="bottom" width="17%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Amount
                of Aggregate</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Offering
                Price</font></div>
            </td>
            <td align="left" valign="bottom" width="13%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Registration
                Fee</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="5%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
            <td align="left" valign="top" width="14%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
            <td align="left" valign="top" width="16%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
            <td align="left" valign="top" width="17%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
            <td align="left" valign="top" width="17%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
            <td align="left" valign="top" width="13%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
          </tr>
          <tr>
            <td align="left" colspan="2" valign="top" width="19%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Common
                Stock,</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">no
                par value</font></div>
            </td>
            <td valign="top" width="16%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1,100,000</font></div>
            </td>
            <td valign="top" width="17%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">$.34
                </font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Dutch 801, sans-serif"><sup>(1)</sup></font></div>
            </td>
            <td valign="top" width="17%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">$374,000.00</font></div>
            </td>
            <td valign="top" width="13%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">$86.00</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Dutch 801, sans-serif"><sup>(1)</sup></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="5%" style="BORDER-BOTTOM: #000000 double">&#160;</td>
            <td align="left" valign="top" width="14%" style="BORDER-BOTTOM: #000000 double">&#160;</td>
            <td align="left" valign="top" width="16%" style="BORDER-BOTTOM: #000000 double">&#160;</td>
            <td align="left" valign="top" width="17%" style="BORDER-BOTTOM: #000000 double">&#160;</td>
            <td align="left" valign="top" width="17%" style="BORDER-BOTTOM: #000000 double">&#160;</td>
            <td align="left" valign="top" width="13%" style="BORDER-BOTTOM: #000000 double">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="5%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td align="left" colspan="5" valign="top" width="78%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Estimated
                solely for the purpose of calculating the registration fee in accordance
                with Rule 457(c) and based upon the average of the high and low price
                of
                the Registrant's Common Stock as reported by the Electronic Bulletin
                Board
                of the NASD on July 22, 2005. The filing fee is calculated under
                Section
                6(b) of the Securities Act of 1933, as amended.
</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="40%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Exhibit
                Index is on page 8.</font></div>
            </td>
            <td align="right" valign="top" width="45%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Page
                1 of 13 pages.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">PROSPECTUS</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman"><strong>INTERNATIONAL
      AUTOMATED SYSTEMS, INC. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1,100,000
      Shares of Common Stock</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      1,100,000 shares of Common Stock, no par value per share (the "Common Stock"),
      of International Automated Systems, Inc., a Utah corporation (the "Company"),
      offered hereby will be sold by four shareholders of the Company, LaGrande
      Johnson, Randale Johnson, Christopher Taylor, and Curtis Snow (the "Selling
      Shareholders").</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">All
      of
      such shares have been issued to, and will be sold by, the Selling Shareholders
      identified herein under "Selling Shareholders." The Company will not receive
      any
      part of the proceeds from the sale of any of these shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">On
      July
      22, 2005, the closing price of the Company's Common Stock, as reported on the
      EBB of the NASD was $.34.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">FOR
      A
      DISCUSSION OF CERTAIN FACTORS TO CONSIDER BEFORE PURCHASING ANY OF THE
      SECURITIES OFFERED HEREBY, SEE "RISK FACTORS".</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">THESE
      SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE
      COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND
      EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY
      OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
      OFFENSE.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Selling Shareholders acquired the shares offered hereby in a private transaction
      not registered under the Securities Act. Consequently, in connection with this
      offering, the Selling Shareholders may be deemed to be an "underwriter" of
      the
      Company's Common Stock offered hereby, as that term is defined under the
      Securities Act. The Selling Shareholders intend to sell the shares offered
      hereby from time-to-time for their accounts in the open market at the prices
      prevailing therein or in individually negotiated transactions at such prices
      as
      may be agreed upon. Although there are no current arrangements therefore,
      commissions equal to or in excess of normal brokerage commissions may be paid
      to
      brokerage firms in connection with such sales. The Selling Shareholders will
      bear all expenses with respect to the offering of shares, including the costs
      associated with registering shares under the Securities Act and preparing this
      Prospectus.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      date
      of this Prospectus is June 30, 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>AVAILABLE
      INFORMATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Company is subject to the informational requirements of the Securities Exchange
      Act of 1934, as amended (the "Exchange Act"), and in accordance therewith files
      reports, proxy statements and other information with the Securities and Exchange
      Commission (the "SEC"). Reports, proxy statements and other information filed
      by
      the Company can be inspected and copied at the public reference facilities
      maintained by the SEC at 450 Fifth Street N.W., Washington, D.C. 20549. Copies
      of such material can also be obtained from the Public Reference Section of
      the
      SEC, 450 Fifth Street N.W., Washington, D.C. 20549, at the SEC's prescribed
      rates. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Company has filed with the SEC a registration statement on Form S-8 (the
      "Registration Statement") under the Securities Act, with respect to the shares
      of Company Common Stock to be sold pursuant to this Prospectus. This Prospectus
      does not contain all the information set forth in the Registration Statement,
      certain portions of which have been omitted pursuant to the rules and
      regulations of the SEC. A copy of the Registration Statement may be inspected
      without charge at the principal offices of the SEC in Washington
      D.C.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">NO
      PERSON
      HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION NOT
      CONTAINED IN THIS PROSPECTUS IN CONNECTION WITH THE OFFER-ING MADE HEREBY,
      AND
      IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON
      AS
      HAVING BEEN AUTHORIZED BY THE COMPANY. THIS PROSPECTUS DOES NOT CONSTITUTE
      AN
      OFFER OF ANY SECURITIES OTHER THAN THE REGISTERED SECURITIES TO WHICH IT
      RELATES, OR AN OFFER TO ANY PERSON IN ANY JURISDICTION WHERE SUCH OFFER WOULD
      BE
      UNLAWFUL. THE DELIVERY OF THIS PROSPEC-TUS AT ANY TIME DOES NOT IMPLY THAT
      THE
      INFORMATION HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS
      DATE.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>INCORPORATION
      OF CERTAIN DOCUMENTS BY REFERENCE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      following documents filed by the Company with the SEC are incorporated herein
      by
      reference: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 27pt">
            </td>
            <td align="left" style="WIDTH: 27pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(a)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                Company's Annual Report on Form 10-KSB for the calender year ended
                June
                30, 2004, and June 30, 2003, filed pursuant to Section 13 of the
                Exchange
                Act.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
      addition, all reports and other documents subsequently filed by the Company
      pursuant to Sections 13(a), 13(c), 14, and 15(d) of the Exchange Act after
      the
      date of this Prospectus and prior to the termination of this offering, shall
      be
      deemed to be incorporated by reference herein and shall be deemed to be a part
      hereof from the date of the filing of each such report or document.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Any
      statement incorporated herein shall be deemed to be modified or superseded
      for
      purposes of this Prospectus to the extent that a statement contained herein
      or
      in any other subsequently filed document which also is or is deemed to be
      incorporated by reference herein modifies or supersedes such statement. Any
      statement so modified or superseded shall not be deemed, except as so modified
      or superseded, to constitute a part of this Prospectus. S</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 0pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">ubject
      to
      the foregoing, all information appearing in this Prospectus is qualified in
      its
      entirely by the information appearing in the documents incorporated herein
      by
      reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Company will furnish without charge to each person to whom this Prospectus
      is
      delivered, upon written or oral request, a copy of any or all of the documents
      referred to above which have been or may be incorporated in this Prospectus
      by
      reference, other than exhibits to such documents unless such exhibits are
      specifically incorporated by reference into the information incorporated herein
      by reference. Request should be addressed to: Corporate Secretary, International
      Automated Systems, Inc., 326 North State Road 198, Salem, Utah, telephone
      (801)423-8132. </font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>RISK
      FACTORS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      shares of Common Stock offered hereby involve a substantial degree of risk
      and
      only persons who are financially able to sustain the loss of their total
      investment should consider purchasing such shares. Prospective purchasers should
      carefully review the entire Prospectus and consider the following risk factors
      prior to purchasing the shares of Common Stock offered hereby.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Recent
      Developments.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      The
      Company has different technologies which it has been developing. The Company
      must develop products and systems that will be commercially viable in the market
      place. In essence, the Company must undergo a transition from a development
      company to an operating company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Possible
      Need for Additional Capital.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      The
      Company may be required to seek additional financing. There can be no assurance
      that any such financing will be available to the Company if and when required,
      or on terms acceptable to the Company, or that such additional financing, if
      available, would not result in substantial dilution of the equity interests
      of
      existing stockholders. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SEC
      Action Against the Company. </strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      U.S.
      Securities and Exchange Commission filed a civil lawsuit against the Company
      and
      an officer and director and one of its directors. The Company and the officer
      defendant and the director defendant entered into a settlement. The final
      judgment against the Company and the Company&#8217;s officer included an injunction
      prohibiting any future violations of the provisions of Section 17(a) of the
      Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of
      1934.
      In addition, the final judgment against the Company entered in October 2004
      required adjustments in the Company&#8217;s board of directors so that a majority of
      the Company&#8217;s directors would be independent. The Company is in the process of
      adjusting its board of directors so that a majority of the directors will be
      independent. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Product
      Distribution. </strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Company must develop a marketing systems for its products. The Company will
      seek
      to set up a marketing system using consultants, independent contractors,
      distribution agreements, and other means. In addition, the Company or others
      may
      manufacture any products the Company develops. The Company may encounter
      problems in its manufacturing efforts. Also, the Company may purchase components
      from others and then assemble the components into a unit. The Company has been
      unable to project the costs of establishing and marketing products it may seek
      to distribute into the markets. The Company has had limited experience in
      successfully manufacturing and marketing its products. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Competition;
      Dominance of Industry Leaders. </strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Most
      of
      the Company&#8217;s competitors have financial, marketing or management resources
      substantially greater than those of the Company. The industries are dominated
      by
      companies with annual revenues that exceed a billion dollars. Our principal
      market is to small and medium sized businesses with modest sales volume. We
      may
      face increasing competition from competitors. There can be no assurance that
      competitive products will not have a material adverse effect on our business
      or
      make or products obsolete or uneconomical. The Company will seek to establish
      a
      marketing system using independent contractors, distribution agreements,
      consultants, and other means. The Company faces intense competition that may
      adversely affect its business. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Competition;
      Products and Gross Margin. </strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      compete in an industry characterized by intense and increasing competition.
      Our
      products have shorter and shorter life cycles. Our gross margins may be effected
      and reduced over a short time period. In addition, our products may be subject
      to loss in value due to technological obsolescence. There can be no assurance
      that our strategies will be successful or that we will experience or maintain
      adequate gross margins. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Dependence
      upon Key Personnel</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">.
      We are
      dependent upon the marketing and management expertise of certain key personnel.
      While we believe that the Company could find other qualified persons to assume
      the responsibilities of these key personnel, the disruption to operations could
      have a material adverse effect on business as searching for new personnel would
      require a substantial amount of time. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Possible
      Sales by Shareholders</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">.
      The
      Company has shareholders which could sell their shares but have not done so.
      The
      selling shareholders have 1,100,000 shares (4%) of its outstanding Common Stock
      which as of September 30, 2004, was 24,966,140. The sale of those shares in
      quantity may have the effect of substantially depressing the market price of
      the
      Company's Common Stock.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Volatility
      of Stock Price; Trading Volume</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">.
      The
      price of the our Common Stock has been subject to significant price
      fluctuations. There can be no assurance that the price of the our Common Stock
      will stabilize at any time or at a price equal to or above the offering price
      of
      the shares offered hereby. In addition, the trading volume for our Common Stock
      has generally been low. A large increase in share trading volume in a short
      period of time could cause a significant reduction in share trading
      prices.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Options
      to Company Officer May Dilute Existing Shareholders. </strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
      May
      2004 the Company purchased certain technology from the Company President and
      as
      payment for this technology, the Company granted options to purchase a total
      of
      100,000,000 shares of the Company&#8217;s common stock at a purchase price of $.40 per
      share. The first option for 5,000,000 shares of common stock became exercisable
      on January 1, 2005, and the remaining options become exercisable over the next
      five years. The schedule for the effective date of the options is as
      follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="30%">

          <tr>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">January
                1, 2005</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">5,000,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">January
                1, 2006</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">5,000,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">January
                1, 2007</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">5,000,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">January
                1, 2008</font></div>
            </td>
            <td align="right" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">10,000,000</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="15%">
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                1, 2009</font></div>
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            </td>
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          <tr>
            <td align="left" valign="top" width="5%">&#160;</td>
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">January
                1, 2010</font></div>
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      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Any
      exercise of these options by the Company officer may substantially dilute the
      interest of existing shareholders of the Company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>THE
      COMPANY</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">International
      Automated Systems, Inc. (the "Company") develops high technology products.
      The
      Company has developed an engine or a turbine to be used in electrical
      generation. The Company may couple its turbine with solar panels for electricity
      generation or other uses. Further, the Company has under development a new
      means
      of sending waves through the electro-magnetic spectrum. This new means expands
      the data and signals which can be transmitted. The Company has developed a
      point
      of sale program which will automate the ordering and payment process at retail
      stores or fast food restaurants. For a short time on an experimental basis
      the
      Company had a system in operation for a group of restaurants but the restaurants
      have now closed. Also, the Company has under development a personal
      identification systems to resolve security issues and identify customers and
      personnel.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      executive offices are located at 326 North State Road 198, Salem, Utah 84653
      and
      our telephone number is (801)423-8132. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SHARES
      COVERED</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      shares covered by this Prospectus have been so included pursuant to contractual
      registration rights by the holder of such shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      have
      no specific information concerning whether or when any offers or sales of shares
      covered by this Prospectus will be made, or if made, on what the price, terms
      or
      conditions of any such offers or sales will be made. Based on information
      available to us, it is the our understanding that the Selling Shareholders
      propose to offer and sell the shares covered hereby in one or more transactions
      either (i) by one or more broker-dealers (the "Brokers") as agents for the
      Selling Shareholders at a price or prices related to the then current market
      price of the Company's Common Stock, with such commission to be paid by the
      respective Selling Shareholders to the Brokers as shall be agreed upon by them,
      or (ii) by the respective Selling Shareholders to the Brokers (for resale by
      the
      Brokers as principals) at a price or prices related to the then current market
      price of the our Common Stock, less such discount, if any, as shall be agreed
      upon by the respective Selling Shareholders and Brokers, or (iii) by a
      combination of the methods described above. We have agreed to indemnify the
      Selling Shareholders against certain liabilities, including liabilities under
      the Securities Act, and we will bear the expense of preparation and filing
      of
      the Registration Statement (of which this Prospectus is a part) and certain
      other expense.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Selling Shareholders may be considered an "underwriter" within the meaning
      of
      the Securities Act. See "Selling Shareholder" for information concerning the
      beneficial ownership of Company securities by such holder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>USE
      OF PROCEEDS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">All
      of
      the securities covered by this Prospectus are being offered by the Selling
      Shareholders. As a consequence, the Company will not receive any of the proceeds
      of sales of such securities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SELLING
      SHAREHOLDERS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">An
      aggregate of 1,100,000 shares of our Common Stock is being offered pursuant
      to
      this Prospectus by the persons whose names appear below (the "Selling
      Shareholder"). The following table sets forth the names of the Selling
      Shareholders, the nature of any material relationship between us and the Selling
      Shareholders, the number of shares of Common Stock beneficially owned prior
      to
      the offering to be made by this Prospectus, the maximum number of shares to
      be
      offered hereby for the account of the Selling Shareholders, and the number
      and
      percentage of the outstanding shares of Common Stock to be beneficially owned
      by
      the Selling Shareholders after completion of this offering, assuming all shares
      offered hereby are in fact sold.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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                Owned Before</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
                Offering</font></div>
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            <td align="left" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Shares
                Offered by</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
                Prospectus</font></div>
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            <td align="left" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">%
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                Before Offering</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: black thin solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">%
                of Shares Owned</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
                After Offering</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Dutch 801, sans-serif"><sup>(1)</sup></font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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          <tr>
            <td align="left" valign="bottom" width="31%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="15%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
          </tr>
          <tr bgcolor="#e2eef6">
            <td align="left" valign="bottom" width="31%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">LaGrande
                Johnson </font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">30,000</font></div>
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            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">375,000</font></div>
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            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">*</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1.4</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">%</font></div>
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          </tr>
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            <td align="left" valign="bottom" width="31%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Randale
                Johnson </font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">-0-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">375,000</font></div>
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            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">*</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">1.4</font></div>
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            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr bgcolor="#e2eef6">
            <td align="left" valign="bottom" width="31%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Christopher
                Taylor </font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">-0-</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">175,000</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">*</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #e2eef6">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">*</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #e2eef6">&#160;</td>
          </tr>
          <tr bgcolor="#ffffff">
            <td align="left" valign="bottom" width="31%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Curtis
                Snow </font></div>
            </td>
            <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">2,000</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">175,000</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">*</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            <td align="right" valign="bottom" width="14%" style="BORDER-BOTTOM: #ffffff">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">*</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">___________________________________</font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">*</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Denotes
                less than 1%</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                percentage is based upon 24,834,140 shares of Common Stock issued
                and
                outstanding on June 30, 2004. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 18pt">&#160;</td>
            <td style="WIDTH: 27pt">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(2)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Selling
                Shareholders acquired their shares as part of an employee compensation
                plan or consultant agreements. The services rendered were not in
                connection with the offer or sale of securities in a capital raising
                transaction.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>PLAN
      OF DISTRIBUTION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Selling Shareholders may sell the shares offered hereby pursuant to trades
      effectuated through the Electronic Bulletin Board or through individually
      negotiated sales or underwriting agreements. Brokerage commissions equal to
      or
      in excess of normal commissions may be paid by the Selling Shareholders,
      although we are not aware of any such arrangements that have been entered into
      at this time. The Selling Shareholders will be selling the shares offered hereby
      for their own accounts. We will not receive any proceeds thereof. We and the
      Selling Shareholders have agreed to indemnify each other for certain Securities
      Act liabilities.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Part
      II</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>INFORMATION
      NOT REQUIRED IN PROSPECTUS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Incorporation
      of Documents by Reference</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      following documents filed by the Company with the SEC are incorporated herein
      by
      reference: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="LINE-HEIGHT: 1.25">
            <td style="WIDTH: 27pt">
            </td>
            <td align="left" style="WIDTH: 27pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(a)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
                Company's Annual Report on Form 10-KSB for the fiscal years ended
                June 30,
                2004 and 2003, filed pursuant to Section 13 of the Exchange
                Act.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">In
      addition, all reports and other documents subsequently filed by the Company
      pursuant to Sections 13(a), 13(c), 14, and 15(d) of the Exchange Act after
      the
      date of this Prospectus and prior to the termination of this offering, shall
      be
      deemed to be incorporated by reference herein and shall be deemed to be a part
      hereof from the date of the filing of each such report or document.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Item
      4.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Description
      of Securities</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      information subject of this item is not required because the securities offered
      are registered under Section 12 of the Securities Exchange Act of 1934, as
      amended.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Interests
      of Experts and Counsel</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Wallace
      T. Boyack serves as legal counsel for this registration statement and he owns
      less than one per cent of the issued and outstanding shares of the Company&#8217;s
      common stock. Wallace T. Boyack disavows that for purposes of this registration
      statement and for other purposes that he is an expert as to any and all matters
      relating hereto.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Item
      6.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Indemnification
      of Directors and Officers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Our
      Certificate of Incorporation provides that directors and officers be indemnified
      to the pursuant to Utah law.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      Revised Business Corporations Act of Utah (the "Utah BCA") provides, in general,
      that a director or officer of a corporation (i) shall be indemnified by the
      corporation for all expenses of litigation or other legal proceedings when
      he is
      successful on the merits or otherwise, and (ii) may be indemnified by the
      corporation for the expenses, judgement, fines and amounts paid in settlement
      of
      such litigation even if he acted in good faith and in a manner he reasonably
      believed to be not opposed to the best interests of the corporation (and in
      a
      criminal proceeding if he had no reasonable cause to believe his conduct was
      unlawful). A director may not be indemnified if he adjudged to be liable to
      the
      Company or if he in the proceeding was adjudged to receive an improper personal
      benefit. Expenses incurred by a director or officer in defending an action
      may
      be advanced by the corporation prior to the final disposition of such action
      upon receipt of an undertaking by such director or officer to repay such
      expenses if it is ultimately determined that he is not entitled to be
      indemnified in connection with the proceeding to which the expenses
      related.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">To
      the
      extent that indemnification pertains to liabilities under the Securities Act
      of
      1933, the registrant has been informed that in the opinion of the Securities
      and
      Exchange Commission such indemnification is against public policy as expressed
      in the Act and is therefore unenforceable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
      may
      seek directors and officers liability insurance against the cost of defense,
      settlement or payment of a judgment under certain circumstances.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Item
      7.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Exemption
      from Registration Claimed</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      shares subject of this Registration Statement were issued for consulting
      services and as employee remuneration. The issuance was made in reliance on
      the
      exemption contained in Section 4(2) of the Securities Act of 1933, as amended,
      as a transaction not involving any public offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Item
      8.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Exhibits</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="bottom" width="15%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><u><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>
                No.</strong></font></u></div>
            </td>
            <td align="left" valign="bottom" width="50%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>Title
                of Document</u></strong></font></div>
            </td>
            <td valign="bottom" width="15%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><u>Page
                No.</u></strong></font></div>
            </td>
            <td valign="bottom" width="20%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><u><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Location
                or</strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>
                Filing</strong></font></u></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">10.1</font></div>
            </td>
            <td align="left" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Consultant
                Agreement with and for Selling Shareholders</font></div>
            </td>
            <td valign="top" width="15%">&#160;</td>
            <td valign="top" width="20%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">This
                Filing</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="15%">&#160;</td>
            <td align="left" valign="top" width="50%">&#160;</td>
            <td valign="top" width="15%">&#160;</td>
            <td valign="top" width="20%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">5.01</font></div>
            </td>
            <td align="left" valign="top" width="50%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Opinion
                of Wallace T. Boyack, Esq.</font></div>
            </td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">11</font></div>
            </td>
            <td valign="top" width="20%">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">23.01</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">23.02</font></div>
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                of Hansen Barnett and Maxwell Independent Certified Public
                Accountants</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>_________________________________</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Item
      9. Undertakings</strong></font></div>
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        <div>
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              <tr valign="top" style="LINE-HEIGHT: 1.25">
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(i)</font></div>
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                    include any prospectus required by Section 10(a)(3) of the Securities
                    Act
                    of 1933;</font></div>
                </td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">to
                    reflect in the prospectus any facts or events arising after the
                    effective
                    date of the Registration Statement (or the most recent post-effective
                    amendment thereof) which, individually or in the aggregate, represent
                    a
                    fundamental change in the information set forth in the Registration
                    Statement;</font></div>
                </td>
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          </table>
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              <tr valign="top" style="LINE-HEIGHT: 1.25">
                <td style="WIDTH: 63pt">
                </td>
                <td align="left" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(iii)</font></td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">to
                    include any material information with respect of the plan of
                    distribution
                    not previously disclosed in the Registration Statement or any
                    material
                    change to such information in the Registration
                    Statement;</font></div>
                </td>
              </tr>

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        <div>&#160;</div>
        <div>&#160;</div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Provided,
      however, that Paragraphs (a)(1)(i) and( a)(1)(ii) do not apply if the
      Registration Statement is on Form S-3 or Form S-8 and the information required
      to be included in a post-effective amendment by those paragraphs is contained
      in
      periodic reports filed by the registrant pursuant to Section 13 or Section
      15(d)
      of the Securities Exchange Act of 1934 that are incorporated by reference in
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(2)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">That,
      for
      the purpose of determining any liability under the Securities Act of 1933,
      each
      such post-effective amendment shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial bona fide offering
      thereof.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(3)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">To
      remove
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      being registered which remain unsold at the termination of the
      offering.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
      undersigned registrant hereby undertakes that, for the purpose of determining
      any liability under the Securities Act of 1933, each filing of the registrant's
      annual report pursuant to Section 13(a) or Section 15(d) of the Securities
      Act
      of 1934 (and, where applicable, each filing of an employee benefit plan's annual
      report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that
      is
      incorporated by reference in the Registration Statement shall be deemed to
      be a
      new registration statement relating to the securities offered therein, and
      the
      offering of such securities at that time shall be deemed to be the initial
      bona
      fide offering thereof.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(c)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Insofar
      as indemnification for liabilities arising under the Securities Act of 1933
      may
      be permitted to directors, officers and controlling persons of the Registrant
      pursuant to the foregoing provisions, or otherwise, the Registrant has been
      advised that in the opinion of the Securities and Exchange Commission such
      indemnification is against public policy as expressed in the Securities Act
      of
      1933 and is, therefore, unenforceable. In the event that a claim for
      indemnification against such liabilities (other than the payment by the
      Registrant of expenses incurred or paid by a director, officer, or controlling
      person of the Registrant in the successful defense of any action, suit or
      proceeding) is asserted by such director, officer or controlling person in
      connection with the securities being registered, the Registrant will, unless
      in
      the opinion of its counsel the matter has been settled by controlling precedent,
      submit to a court of appropriate jurisdiction the question whether such
      indemnification by it is against public policy as expressed in the Securities
      Act of 1933 and will be governed by the final adjudication of such
      issue.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 45pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Act of 1933, the Registrant certifies
      at
      it has reasonable grounds to believe that it meets all the requirements for
      filing a form S-8 and has duly caused this Registration Statement to be singed
      ion its behalf by the undersigned, thereunto duly authorized, in the City of
      Salem, State of Utah, on the 30</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">
      day of
      June 2005.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
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          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="43%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>INTERNATIONAL
                AUTOMATED SYSTEMS, INC.</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="43%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="43%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="43%">&#160;</td>
          </tr>
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            <td align="left" valign="top" width="34%" style="BORDER-BOTTOM: medium none">&#160;</td>
            <td align="left" valign="top" width="43%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">By:</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>/s/
                Neldon Johnson</u></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="43%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Neldon
                Johnson, President </font></div>
            </td>
          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(This
      Space Intentionally Left Blank)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 54pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pursuant
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      has been signed below by the following persons in the capacities and on the
      dates indicated.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Title</strong></font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Date</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>/s/
                <font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Neldon
                Johnson</font></u></font></div>
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            <td align="left" valign="top" width="33%" style="BORDER-BOTTOM: medium none">
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                30, 2005</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">
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                and Director</font></div>
            </td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Principal
                Executive Officer)</font></div>
            </td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>/s/
                <font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">LaGrand
                Johnson</font></u></font></div>
            </td>
            <td align="left" valign="top" width="33%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Secretary,
                Treasurer, Chief</font></div>
            </td>
            <td valign="top" width="33%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">June
                30, 2005</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">LaGrand
                Johnson</font></div>
            </td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Financial
                Officer and Director </font></div>
            </td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Principal
                Financial and </font></div>
            </td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Accounting
                Officer)</font></div>
            </td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>/s/
                <font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Bruce
                Barrett </font></u></font></div>
            </td>
            <td align="left" valign="top" width="33%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Director
                </font></div>
            </td>
            <td valign="top" width="33%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">June
                30, 2005</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Bruce
                Barrett </font></div>
            </td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>/s/
                <font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Christopher
                J. Taylor</font></u></font></div>
            </td>
            <td align="left" valign="top" width="33%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
            <td valign="top" width="33%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">June
                30, 2005</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Christopher
                J. Taylor</font></div>
            </td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">&#160;</td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>/s/
                <font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">S.
                Curtis Snow</font></u></font></div>
            </td>
            <td align="left" valign="top" width="33%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
            <td valign="top" width="33%" style="BORDER-BOTTOM: medium none">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">June
                30, 2005</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="34%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">S.
                Curtis Snow</font></div>
            </td>
            <td align="left" valign="top" width="33%">&#160;</td>
            <td valign="top" width="33%">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="4">
      <hr style="MARGIN-TOP: -10px; COLOR: #000000" noshade size="1">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
        5.1 and Exhibit 23.01</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Opinion
        of Counsel</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Boyack
        Ashton LC</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Wallace
        T. Boyack</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">175
        South
        Main Street, 1212</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Salt
        Lake
        City, Utah 84111</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Tel.
        801-596-3337 </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Fax:
        801-532-3298</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">June
        30,
        2005</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">International
        Automated Systems, Inc.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Re:
        Opinion of Counsel &#8212; Registration Statement on Form S-8</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Gentlemen:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">The
        undersigned has acted as counsel for International Automated Systems, Inc.,
        (the
&#8220;Company&#8221;), in connection with the Company&#8217;s Registration Statement on Form S-8
        under the Securities Act of 1933, as amended, (the &#8220;Registration
        Statement&#8221;)</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>,
        </strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">relating
        to 1,100,000 shares of the Company&#8217;s common stock (the &#8220;common stock&#8221;) issuance
        pursuant to the Company&#8217;s Consultants Agreement (the &#8220;Plan&#8221;).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">I
        have
        examined the documents I consider appropriate to provide me with an adequate
        basis to issue the opinion expressed herein.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">I
        am of
</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">the
        </font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">opinion
        that the shares of Common Stock to be issued under the Plan are duly authorized
        and will be validly issued, fully paid, and nonassessable. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 72pt"></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Further,
        I consent to the filing of this opinion as an exhibit to the Registration
        Statement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Very
        truly yours,</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><u>s/
        Wallace T. Boyack, Esq</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Wallace
        T. Boyack, Esq.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div>
        <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="4">
        <hr style="MARGIN-TOP: -10px; COLOR: #000000" noshade size="1">
      </div>
      <div><strong>Exhibit 23.02</strong></div>
      <div><br>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>CONSENT
        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">We
        consent to the incorporation by reference in the Registration Statement (Form
        S-8) dated June 30, 2005, registering 1,100,000 shares of International
        Automated Systems, Inc. common stock currently held by employees, of our
        report
        dated September 10, 2004, with respect to the financial statements of
        International Automated Systems, Inc. included in its Annual Report on Form
        10-KSB for the year ended June 30, 2004</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="top" width="50%">&#160;</td>
              <td align="left" valign="top" width="50%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">/s/
                  Hansen, Barnett &amp; Maxwell</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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        Lake
        City, Utah</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">July
        22,
        2005</font></div>
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{"company-data": {"conformed-name": "INTERNATIONAL AUTOMATED SYSTEMS INC", "cik": "0000820380", "assigned-sic": "7372", "irs-number": "870447580", "state-of-incorporation": "UT", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-126886", "film-number": "05974598"}, "business-address": {"street1": "326 N STATE ROAD 198", "city": "SALEM", "state": "UT", "zip": "84653", "phone": "801-423-8132"}, "mail-address": {"street1": "326 N. STATE ROAD 198", "street2": "-", "city": "SALEM", "state": "UT", "zip": "84653"}}
International Automated Systems, Inc. Form S-8
Registration
      No. 33-________
As
      filed
      with the Securities and Exchange Commission on June 30, 2005
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
F
O
RM
      S-8
Registration
      Statement Under the Securities Act of 1933
INTERNATIONAL
      AUTOMATED SYSTEMS, INC.
(Exact
      name of registrant as specified in its charter)
Utah
87-0447580
(State
                of Incorporation)
(I.R.S.
                Employer Identification No.)
326
      North State Road 198, Salem, Utah 84653 (801) 400-0678
(Address,
      including zip code, and telephone number, including
area
      code, of registrant's principal executive offices)
Advisor
      Compensation Plan
(Full
      title of the plan)
Neldon
      Johnson, President, International Automated Systems, Inc.
326
      North State Road 198, Salem, Utah 84653 (801) 400-0678
(Name,
      address, including zip code, and telephone number, including area code, of
      agent
      for service of process)
CALCULATION
                OF REGISTRATION FEE
Title
                of Each Class of
Securities
                to be Registered
Proposed
                Amount
to
                be Registered
Proposed
                Maximum
Offering
                Price Per Unit
Amount
                of Aggregate
Offering
                Price
Registration
                Fee
Common
                Stock,
no
                par value
1,100,000
$.34
(1)
$374,000.00
$86.00
(1)
(1)
Estimated
                solely for the purpose of calculating the registration fee in accordance
                with Rule 457(c) and based upon the average of the high and low price
                of
                the Registrant's Common Stock as reported by the Electronic Bulletin
                Board
                of the NASD on July 22, 2005. The filing fee is calculated under
                Section
                6(b) of the Securities Act of 1933, as amended.
Exhibit
                Index is on page 8.
Page
                1 of 13 pages.
PROSPECTUS
INTERNATIONAL
      AUTOMATED SYSTEMS, INC.
1,100,000
      Shares of Common Stock
The
      1,100,000 shares of Common Stock, no par value per share (the "Common Stock"),
      of International Automated Systems, Inc., a Utah corporation (the "Company"),
      offered hereby will be sold by four shareholders of the Company, LaGrande
      Johnson, Randale Johnson, Christopher Taylor, and Curtis Snow (the "Selling
      Shareholders").
All
      of
      such shares have been issued to, and will be sold by, the Selling Shareholders
      identified herein under "Selling Shareholders." The Company will not receive
      any
      part of the proceeds from the sale of any of these shares.
On
      July
      22, 2005, the closing price of the Company's Common Stock, as reported on the
      EBB of the NASD was $.34.
FOR
      A
      DISCUSSION OF CERTAIN FACTORS TO CONSIDER BEFORE PURCHASING ANY OF THE
      SECURITIES OFFERED HEREBY, SEE "RISK FACTORS".
THESE
      SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE
      COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND
      EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY
      OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
      OFFENSE.
The
      Selling Shareholders acquired the shares offered hereby in a private transaction
      not registered under the Securities Act. Consequently, in connection with this
      offering, the Selling Shareholders may be deemed to be an "underwriter" of
      the
      Company's Common Stock offered hereby, as that term is defined under the
      Securities Act. The Selling Shareholders intend to sell the shares offered
      hereby from time-to-time for their accounts in the open market at the prices
      prevailing therein or in individually negotiated transactions at such prices
      as
      may be agreed upon. Although there are no current arrangements therefore,
      commissions equal to or in excess of normal brokerage commissions may be paid
      to
      brokerage firms in connection with such sales. The Selling Shareholders will
      bear all expenses with respect to the offering of shares, including the costs
      associated with registering shares under the Securities Act and preparing this
      Prospectus.
The
      date
      of this Prospectus is June 30, 2005.
AVAILABLE
      INFORMATION
The
      Company is subject to the informational requirements of the Securities Exchange
      Act of 1934, as amended (the "Exchange Act"), and in accordance therewith files
      reports, proxy statements and other information with the Securities and Exchange
      Commission (the "SEC"). Reports, proxy statements and other information filed
      by
      the Company can be inspected and copied at the public reference facilities
      maintained by the SEC at 450 Fifth Street N.W., Washington, D.C. 20549. Copies
      of such material can also be obtained from the Public Reference Section of
      the
      SEC, 450 Fifth Street N.W., Washington, D.C. 20549, at the SEC's prescribed
      rates.
The
      Company has filed with the SEC a registration statement on Form S-8 (the
      "Registration Statement") under the Securities Act, with respect to the shares
      of Company Common Stock to be sold pursuant to this Prospectus. This Prospectus
      does not contain all the information set forth in the Registration Statement,
      certain portions of which have been omitted pursuant to the rules and
      regulations of the SEC. A copy of the Registration Statement may be inspected
      without charge at the principal offices of the SEC in Washington
      D.C.
NO
      PERSON
      HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION NOT
      CONTAINED IN THIS PROSPECTUS IN CONNECTION WITH THE OFFER-ING MADE HEREBY,
      AND
      IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON
      AS
      HAVING BEEN AUTHORIZED BY THE COMPANY. THIS PROSPECTUS DOES NOT CONSTITUTE
      AN
      OFFER OF ANY SECURITIES OTHER THAN THE REGISTERED SECURITIES TO WHICH IT
      RELATES, OR AN OFFER TO ANY PERSON IN ANY JURISDICTION WHERE SUCH OFFER WOULD
      BE
      UNLAWFUL. THE DELIVERY OF THIS PROSPEC-TUS AT ANY TIME DOES NOT IMPLY THAT
      THE
      INFORMATION HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS
      DATE.
INCORPORATION
      OF CERTAIN DOCUMENTS BY REFERENCE
The
      following documents filed by the Company with the SEC are incorporated herein
      by
      reference:
(a)
The
                Company's Annual Report on Form 10-KSB for the calender year ended
                June
                30, 2004, and June 30, 2003, filed pursuant to Section 13 of the
                Exchange
                Act.
In
      addition, all reports and other documents subsequently filed by the Company
      pursuant to Sections 13(a), 13(c), 14, and 15(d) of the Exchange Act after
      the
      date of this Prospectus and prior to the termination of this offering, shall
      be
      deemed to be incorporated by reference herein and shall be deemed to be a part
      hereof from the date of the filing of each such report or document.
Any
      statement incorporated herein shall be deemed to be modified or superseded
      for
      purposes of this Prospectus to the extent that a statement contained herein
      or
      in any other subsequently filed document which also is or is deemed to be
      incorporated by reference herein modifies or supersedes such statement. Any
      statement so modified or superseded shall not be deemed, except as so modified
      or superseded, to constitute a part of this Prospectus. S
ubject
      to
      the foregoing, all information appearing in this Prospectus is qualified in
      its
      entirely by the information appearing in the documents incorporated herein
      by
      reference.
The
      Company will furnish without charge to each person to whom this Prospectus
      is
      delivered, upon written or oral request, a copy of any or all of the documents
      referred to above which have been or may be incorporated in this Prospectus
      by
      reference, other than exhibits to such documents unless such exhibits are
      specifically incorporated by reference into the information incorporated herein
      by reference. Request should be addressed to: Corporate Secretary, International
      Automated Systems, Inc., 326 North State Road 198, Salem, Utah, telephone
      (801)423-8132.
2
RISK
      FACTORS
The
      shares of Common Stock offered hereby involve a substantial degree of risk
      and
      only persons who are financially able to sustain the loss of their total
      investment should consider purchasing such shares. Prospective purchasers should
      carefully review the entire Prospectus and consider the following risk factors
      prior to purchasing the shares of Common Stock offered hereby.
Recent
      Developments.
The
      Company has different technologies which it has been developing. The Company
      must develop products and systems that will be commercially viable in the market
      place. In essence, the Company must undergo a transition from a development
      company to an operating company.
Possible
      Need for Additional Capital.
The
      Company may be required to seek additional financing. There can be no assurance
      that any such financing will be available to the Company if and when required,
      or on terms acceptable to the Company, or that such additional financing, if
      available, would not result in substantial dilution of the equity interests
      of
      existing stockholders.
SEC
      Action Against the Company.
The
      U.S.
      Securities and Exchange Commission filed a civil lawsuit against the Company
      and
      an officer and director and one of its directors. The Company and the officer
      defendant and the director defendant entered into a settlement. The final
      judgment against the Company and the Company's officer included an injunction
      prohibiting any future violations of the provisions of Section 17(a) of the
      Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of
      1934.
      In addition, the final judgment against the Company entered in October 2004
      required adjustments in the Company's board of directors so that a majority of
      the Company's directors would be independent. The Company is in the process of
      adjusting its board of directors so that a majority of the directors will be
      independent.
Product
      Distribution.
The
      Company must develop a marketing systems for its products. The Company will
      seek
      to set up a marketing system using consultants, independent contractors,
      distribution agreements, and other means. In addition, the Company or others
      may
      manufacture any products the Company develops. The Company may encounter
      problems in its manufacturing efforts. Also, the Company may purchase components
      from others and then assemble the components into a unit. The Company has been
      unable to project the costs of establishing and marketing products it may seek
      to distribute into the markets. The Company has had limited experience in
      successfully manufacturing and marketing its products.
Competition;
      Dominance of Industry Leaders.
Most
      of
      the Company's competitors have financial, marketing or management resources
      substantially greater than those of the Company. The industries are dominated
      by
      companies with annual revenues that exceed a billion dollars. Our principal
      market is to small and medium sized businesses with modest sales volume. We
      may
      face increasing competition from competitors. There can be no assurance that
      competitive products will not have a material adverse effect on our business
      or
      make or products obsolete or uneconomical. The Company will seek to establish
      a
      marketing system using independent contractors, distribution agreements,
      consultants, and other means. The Company faces intense competition that may
      adversely affect its business.
Competition;
      Products and Gross Margin.
We
      compete in an industry characterized by intense and increasing competition.
      Our
      products have shorter and shorter life cycles. Our gross margins may be effected
      and reduced over a short time period. In addition, our products may be subject
      to loss in value due to technological obsolescence. There can be no assurance
      that our strategies will be successful or that we will experience or maintain
      adequate gross margins.
Dependence
      upon Key Personnel
.
      We are
      dependent upon the marketing and management expertise of certain key personnel.
      While we believe that the Company could find other qualified persons to assume
      the responsibilities of these key personnel, the disruption to operations could
      have a material adverse effect on business as searching for new personnel would
      require a substantial amount of time.
Possible
      Sales by Shareholders
.
      The
      Company has shareholders which could sell their shares but have not done so.
      The
      selling shareholders have 1,100,000 shares (4%) of its outstanding Common Stock
      which as of September 30, 2004, was 24,966,140. The sale of those shares in
      quantity may have the effect of substantially depressing the market price of
      the
      Company's Common Stock.
3
Volatility
      of Stock Price; Trading Volume
.
      The
      price of the our Common Stock has been subject to significant price
      fluctuations. There can be no assurance that the price of the our Common Stock
      will stabilize at any time or at a price equal to or above the offering price
      of
      the shares offered hereby. In addition, the trading volume for our Common Stock
      has generally been low. A large increase in share trading volume in a short
      period of time could cause a significant reduction in share trading
      prices.
Options
      to Company Officer May Dilute Existing Shareholders.
In
      May
      2004 the Company purchased certain technology from the Company President and
      as
      payment for this technology, the Company granted options to purchase a total
      of
      100,000,000 shares of the Company's common stock at a purchase price of $.40 per
      share. The first option for 5,000,000 shares of common stock became exercisable
      on January 1, 2005, and the remaining options become exercisable over the next
      five years. The schedule for the effective date of the options is as
      follows:
January
                1, 2005
5,000,000
January
                1, 2006
5,000,000
January
                1, 2007
5,000,000
January
                1, 2008
10,000,000
January
                1, 2009
10,000,000
January
                1, 2010
65,000,000
Any
      exercise of these options by the Company officer may substantially dilute the
      interest of existing shareholders of the Company.
THE
      COMPANY
International
      Automated Systems, Inc. (the "Company") develops high technology products.
      The
      Company has developed an engine or a turbine to be used in electrical
      generation. The Company may couple its turbine with solar panels for electricity
      generation or other uses. Further, the Company has under development a new
      means
      of sending waves through the electro-magnetic spectrum. This new means expands
      the data and signals which can be transmitted. The Company has developed a
      point
      of sale program which will automate the ordering and payment process at retail
      stores or fast food restaurants. For a short time on an experimental basis
      the
      Company had a system in operation for a group of restaurants but the restaurants
      have now closed. Also, the Company has under development a personal
      identification systems to resolve security issues and identify customers and
      personnel.
Our
      executive offices are located at 326 North State Road 198, Salem, Utah 84653
      and
      our telephone number is (801)423-8132.
SHARES
      COVERED
The
      shares covered by this Prospectus have been so included pursuant to contractual
      registration rights by the holder of such shares.
We
      have
      no specific information concerning whether or when any offers or sales of shares
      covered by this Prospectus will be made, or if made, on what the price, terms
      or
      conditions of any such offers or sales will be made. Based on information
      available to us, it is the our understanding that the Selling Shareholders
      propose to offer and sell the shares covered hereby in one or more transactions
      either (i) by one or more broker-dealers (the "Brokers") as agents for the
      Selling Shareholders at a price or prices related to the then current market
      price of the Company's Common Stock, with such commission to be paid by the
      respective Selling Shareholders to the Brokers as shall be agreed upon by them,
      or (ii) by the respective Selling Shareholders to the Brokers (for resale by
      the
      Brokers as principals) at a price or prices related to the then current market
      price of the our Common Stock, less such discount, if any, as shall be agreed
      upon by the respective Selling Shareholders and Brokers, or (iii) by a
      combination of the methods described above. We have agreed to indemnify the
      Selling Shareholders against certain liabilities, including liabilities under
      the Securities Act, and we will bear the expense of preparation and filing
      of
      the Registration Statement (of which this Prospectus is a part) and certain
      other expense.
4
The
      Selling Shareholders may be considered an "underwriter" within the meaning
      of
      the Securities Act. See "Selling Shareholder" for information concerning the
      beneficial ownership of Company securities by such holder.
USE
      OF PROCEEDS
All
      of
      the securities covered by this Prospectus are being offered by the Selling
      Shareholders. As a consequence, the Company will not receive any of the proceeds
      of sales of such securities.
SELLING
      SHAREHOLDERS
An
      aggregate of 1,100,000 shares of our Common Stock is being offered pursuant
      to
      this Prospectus by the persons whose names appear below (the "Selling
      Shareholder"). The following table sets forth the names of the Selling
      Shareholders, the nature of any material relationship between us and the Selling
      Shareholders, the number of shares of Common Stock beneficially owned prior
      to
      the offering to be made by this Prospectus, the maximum number of shares to
      be
      offered hereby for the account of the Selling Shareholders, and the number
      and
      percentage of the outstanding shares of Common Stock to be beneficially owned
      by
      the Selling Shareholders after completion of this offering, assuming all shares
      offered hereby are in fact sold.
Name
Shares
                Owned Before
Offering
Shares
                Offered by
Prospectus
%
                of Shares Owned
Before Offering
%
                of Shares Owned
After Offering
(1)
LaGrande
                Johnson
30,000
375,000
*
1.4
%
Randale
                Johnson
-0-
375,000
*
1.4
%
Christopher
                Taylor
-0-
175,000
*
*
Curtis
                Snow
2,000
175,000
*
*
___________________________________
*
Denotes
                less than 1%
(1)
The
                percentage is based upon 24,834,140 shares of Common Stock issued
                and
                outstanding on June 30, 2004.
(2)
Selling
                Shareholders acquired their shares as part of an employee compensation
                plan or consultant agreements. The services rendered were not in
                connection with the offer or sale of securities in a capital raising
                transaction.
PLAN
      OF DISTRIBUTION
The
      Selling Shareholders may sell the shares offered hereby pursuant to trades
      effectuated through the Electronic Bulletin Board or through individually
      negotiated sales or underwriting agreements. Brokerage commissions equal to
      or
      in excess of normal commissions may be paid by the Selling Shareholders,
      although we are not aware of any such arrangements that have been entered into
      at this time. The Selling Shareholders will be selling the shares offered hereby
      for their own accounts. We will not receive any proceeds thereof. We and the
      Selling Shareholders have agreed to indemnify each other for certain Securities
      Act liabilities.
5
Part
      II
INFORMATION
      NOT REQUIRED IN PROSPECTUS
Item
      3.
Incorporation
      of Documents by Reference
The
      following documents filed by the Company with the SEC are incorporated herein
      by
      reference:
(a)
The
                Company's Annual Report on Form 10-KSB for the fiscal years ended
                June 30,
                2004 and 2003, filed pursuant to Section 13 of the Exchange
                Act.
In
      addition, all reports and other documents subsequently filed by the Company
      pursuant to Sections 13(a), 13(c), 14, and 15(d) of the Exchange Act after
      the
      date of this Prospectus and prior to the termination of this offering, shall
      be
      deemed to be incorporated by reference herein and shall be deemed to be a part
      hereof from the date of the filing of each such report or document.
Item
      4.
Description
      of Securities
The
      information subject of this item is not required because the securities offered
      are registered under Section 12 of the Securities Exchange Act of 1934, as
      amended.
Item
      5.
Interests
      of Experts and Counsel
Wallace
      T. Boyack serves as legal counsel for this registration statement and he owns
      less than one per cent of the issued and outstanding shares of the Company's
      common stock. Wallace T. Boyack disavows that for purposes of this registration
      statement and for other purposes that he is an expert as to any and all matters
      relating hereto.
Item
      6.
Indemnification
      of Directors and Officers
Our
      Certificate of Incorporation provides that directors and officers be indemnified
      to the pursuant to Utah law.
The
      Revised Business Corporations Act of Utah (the "Utah BCA") provides, in general,
      that a director or officer of a corporation (i) shall be indemnified by the
      corporation for all expenses of litigation or other legal proceedings when
      he is
      successful on the merits or otherwise, and (ii) may be indemnified by the
      corporation for the expenses, judgement, fines and amounts paid in settlement
      of
      such litigation even if he acted in good faith and in a manner he reasonably
      believed to be not opposed to the best interests of the corporation (and in
      a
      criminal proceeding if he had no reasonable cause to believe his conduct was
      unlawful). A director may not be indemnified if he adjudged to be liable to
      the
      Company or if he in the proceeding was adjudged to receive an improper personal
      benefit. Expenses incurred by a director or officer in defending an action
      may
      be advanced by the corporation prior to the final disposition of such action
      upon receipt of an undertaking by such director or officer to repay such
      expenses if it is ultimately determined that he is not entitled to be
      indemnified in connection with the proceeding to which the expenses
      related.
6
To
      the
      extent that indemnification pertains to liabilities under the Securities Act
      of
      1933, the registrant has been informed that in the opinion of the Securities
      and
      Exchange Commission such indemnification is against public policy as expressed
      in the Act and is therefore unenforceable.
We
      may
      seek directors and officers liability insurance against the cost of defense,
      settlement or payment of a judgment under certain circumstances.
Item
      7.
Exemption
      from Registration Claimed
The
      shares subject of this Registration Statement were issued for consulting
      services and as employee remuneration. The issuance was made in reliance on
      the
      exemption contained in Section 4(2) of the Securities Act of 1933, as amended,
      as a transaction not involving any public offering.
Item
      8.
Exhibits
Exhibit
No.
Title
                of Document
Page
                No.
Location
                or
Filing
10.1
Consultant
                Agreement with and for Selling Shareholders
This
                Filing
5.01
Opinion
                of Wallace T. Boyack, Esq.
11
This
                Filing
23.01
Consent
                of Wallace T. Boyack Esq., Counsel to Registrant
11
This
                Filing
23.02
Consent
                of Hansen Barnett and Maxwell Independent Certified Public
                Accountants
12
This
                Filing
_________________________________
Item
      9. Undertakings
(a)
The
      undersigned registrant hereby undertakes:
(1)
To
      file,
      during any period in which offers or sales are being made, a post-effective
      amendment to this Registration Statement:
(i)
to
                    include any prospectus required by Section 10(a)(3) of the Securities
                    Act
                    of 1933;
(ii)
to
                    reflect in the prospectus any facts or events arising after the
                    effective
                    date of the Registration Statement (or the most recent post-effective
                    amendment thereof) which, individually or in the aggregate, represent
                    a
                    fundamental change in the information set forth in the Registration
                    Statement;
(iii)
to
                    include any material information with respect of the plan of
                    distribution
                    not previously disclosed in the Registration Statement or any
                    material
                    change to such information in the Registration
                    Statement;
7
Provided,
      however, that Paragraphs (a)(1)(i) and( a)(1)(ii) do not apply if the
      Registration Statement is on Form S-3 or Form S-8 and the information required
      to be included in a post-effective amendment by those paragraphs is contained
      in
      periodic reports filed by the registrant pursuant to Section 13 or Section
      15(d)
      of the Securities Exchange Act of 1934 that are incorporated by reference in
      the
      Registration Statement.
(2)
That,
      for
      the purpose of determining any liability under the Securities Act of 1933,
      each
      such post-effective amendment shall be deemed to be a new registration statement
      relating to the securities offered therein, and the offering of such securities
      at that time shall be deemed to be the initial bona fide offering
      thereof.
(3)
To
      remove
      from registration by means of a post-effective amendment any of the securities
      being registered which remain unsold at the termination of the
      offering.
(b)
The
      undersigned registrant hereby undertakes that, for the purpose of determining
      any liability under the Securities Act of 1933, each filing of the registrant's
      annual report pursuant to Section 13(a) or Section 15(d) of the Securities
      Act
      of 1934 (and, where applicable, each filing of an employee benefit plan's annual
      report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that
      is
      incorporated by reference in the Registration Statement shall be deemed to
      be a
      new registration statement relating to the securities offered therein, and
      the
      offering of such securities at that time shall be deemed to be the initial
      bona
      fide offering thereof.
(c)
Insofar
      as indemnification for liabilities arising under the Securities Act of 1933
      may
      be permitted to directors, officers and controlling persons of the Registrant
      pursuant to the foregoing provisions, or otherwise, the Registrant has been
      advised that in the opinion of the Securities and Exchange Commission such
      indemnification is against public policy as expressed in the Securities Act
      of
      1933 and is, therefore, unenforceable. In the event that a claim for
      indemnification against such liabilities (other than the payment by the
      Registrant of expenses incurred or paid by a director, officer, or controlling
      person of the Registrant in the successful defense of any action, suit or
      proceeding) is asserted by such director, officer or controlling person in
      connection with the securities being registered, the Registrant will, unless
      in
      the opinion of its counsel the matter has been settled by controlling precedent,
      submit to a court of appropriate jurisdiction the question whether such
      indemnification by it is against public policy as expressed in the Securities
      Act of 1933 and will be governed by the final adjudication of such
      issue.
8
SIGNATURES
Pursuant
      to the requirements of the Securities Act of 1933, the Registrant certifies
      at
      it has reasonable grounds to believe that it meets all the requirements for
      filing a form S-8 and has duly caused this Registration Statement to be singed
      ion its behalf by the undersigned, thereunto duly authorized, in the City of
      Salem, State of Utah, on the 30
th
day of
      June 2005.
INTERNATIONAL
                AUTOMATED SYSTEMS, INC.
By:
/s/
                Neldon Johnson
Neldon
                Johnson, President
(This
      Space Intentionally Left Blank)
9
Pursuant
      to the requirements of the Securities Act of 1933, this Registration Statement
      has been signed below by the following persons in the capacities and on the
      dates indicated.
Signature
Title
Date
/s/
Neldon
                Johnson
President,
                Chief Executive
June
                30, 2005
Neldon
                Johnson
Officer
                and Director
(Principal
                Executive Officer)
/s/
LaGrand
                Johnson
Secretary,
                Treasurer, Chief
June
                30, 2005
LaGrand
                Johnson
Financial
                Officer and Director
(Principal
                Financial and
Accounting
                Officer)
/s/
Bruce
                Barrett
Director
June
                30, 2005
Bruce
                Barrett
/s/
Christopher
                J. Taylor
Director
June
                30, 2005
Christopher
                J. Taylor
/s/
S.
                Curtis Snow
Director
June
                30, 2005
S.
                Curtis Snow
10
Exhibit
        5.1 and Exhibit 23.01
Opinion
        of Counsel
Boyack
        Ashton LC
Wallace
        T. Boyack
175
        South
        Main Street, 1212
Salt
        Lake
        City, Utah 84111
Tel.
        801-596-3337
Fax:
        801-532-3298
June
        30,
        2005
International
        Automated Systems, Inc.
Re:
        Opinion of Counsel — Registration Statement on Form S-8
Gentlemen:
The
        undersigned has acted as counsel for International Automated Systems, Inc.,
        (the
"Company"), in connection with the Company's Registration Statement on Form S-8
        under the Securities Act of 1933, as amended, (the "Registration
        Statement")
,
relating
        to 1,100,000 shares of the Company's common stock (the "common stock") issuance
        pursuant to the Company's Consultants Agreement (the "Plan").
I
        have
        examined the documents I consider appropriate to provide me with an adequate
        basis to issue the opinion expressed herein.
I
        am of
the
opinion
        that the shares of Common Stock to be issued under the Plan are duly authorized
        and will be validly issued, fully paid, and nonassessable.
Further,
        I consent to the filing of this opinion as an exhibit to the Registration
        Statement.
Very
        truly yours,
s/
        Wallace T. Boyack, Esq
Wallace
        T. Boyack, Esq.
11
Exhibit 23.02
CONSENT
        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We
        consent to the incorporation by reference in the Registration Statement (Form
        S-8) dated June 30, 2005, registering 1,100,000 shares of International
        Automated Systems, Inc. common stock currently held by employees, of our
        report
        dated September 10, 2004, with respect to the financial statements of
        International Automated Systems, Inc. included in its Annual Report on Form
        10-KSB for the year ended June 30, 2004
.
/s/
                  Hansen, Barnett & Maxwell
Salt
        Lake
        City, Utah
July
        22,
        2005
12