International Technologies Corporation

International Technologies Corporation

September 30, 2005 09:00 ET

ITC Expands Globally, Acquires Exclusive Rights to MPIO Brand

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Sept. 30, 2005) - International Technologies Corporation ("ITC") (TSX VENTURE:ITI), announced today it has entered into independent agreements with MPIO Co. Ltd. ("MPIO Korea"), Digitalway Co. Ltd. and its U.S. subsidiary Digitalway Inc. whereby ITC will acquire the exclusive rights to all MPIO manufacturing, branding and sales accounts for the United States, Mexico, Central and South America. These agreements are in addition to the existing exclusive contract that ITC holds with MPIO Korea to distribute its products across Canada.

ITC signed an exclusive dealership agreement with MPIO Korea in exchange for 2,000,000 common shares of International Technologies Corp. ("ITC Shares"). Pursuant to the terms of the dealership agreement the ITC Shares have a deemed value of $0.50 per share. This dealership agreement gives ITC the rights to the MPIO brand in the aforementioned regions which include sales of all MPIO and Original Equipment Manufacturer (OEM) products.

The Company also entered into an exclusive agreement with Digitalway Co. Ltd. to market all Digitalway Co. Ltd. products in the United States, Mexico, Central and South America in exchange for a cash payment from ITC in the amount of Cdn$425,000. Moreover, ITC purchased all of the issued and outstanding shares of Digitalway Inc. for 1,000,000 ITC Shares. Pursuant to the terms of the share purchase agreement the ITC Shares have a deemed value of $0.50 per share. The corporate acquisition will provide ITC with Digitalway Inc.'s existing U.S. operations, distribution channels and products in addition to the ability to capitalize on the acquired company's tax losses. The transactions are all arms length to ITC and no finder's fees are due or payable. The effective date of the dealership agreements and the share purchase agreement are September 1, 2005.

"These agreements are significant as they award ITC the regions, brand rights, design control, R&D and most importantly, exclusivity on all products made and sold across the western hemisphere," said Michael Uhm, ITC's President and CEO. He continued, "This is a significant and strategic move for ITC as it takes us from a domestic electronics distributor to a global manufacturer and supplier of leading edge digital audio, multimedia, home entertainment and flat screen products. We are very excited at the prospects that await us and expect this new direction to add tremendously to our revenue and profits."

In the flash player category, MPIO was the No. 2 selling brand next to Apple's iPod at major retailer Future Shop/Best Buy Canada in 2004, ran third overall in the U.S., and holds the No. 2 spot in Chile and Peru. MPIO ranks 5th place as one of the largest flash based MP3 players globally. Worldwide market share is reported at 15.8% and growing rapidly as consumers choose the brand for its fashionable, compact style and full feature functionality at an affordable price point.

ITC's technologies include portable music and media players, digital home multi-media centers, surround sound entertainment systems, wireless speakers, LCD/Plasma flat screen monitors and televisions, MP3 encoders and multi-function hybrid digital music devices. All products that are in high consumer demand, with portable and home multimedia technology exploding at an alarming rate.

About ITC

International Technologies Corporation ( is a global supplier of innovative digital audio, multi-media, home entertainment, flat screen monitors/televisions and other advanced electronics products to the consumer and commercial market place. ITC also creates private label and OEM brands for its retail partners. The Company's ability to deliver manufacturer-direct product provides savings and other significant advantages to its customers.

ITC holds the exclusive rights to distribute MPIO products to the North, Central, South American and Mexican markets through its relationship with Digitalway Korea and has exclusivity on all Hansol Korea LCD monitor products sold to the North American market.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development. ITC will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by ITC.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

Contact Information