According to the Company’s FORM 10-QSB For The Quarter Ended September 30, 1999, the securities class action law suit has been dismissed by order of the court. In this case the plaintiffs were seeking the certification of a class to assert claims for damages under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The dismissal resulted from the failure of the plaintiffs to file a complaint which complied with requirements imposed under the Private Securities Litigation Reform Act of 1995.

The original Complaint charges that, during the Class Period, IAI and certain officers and directors of that Company violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The Complaint alleges that defendants issued a series of materially false and misleading financial statements and failed to reveal that the Company's touted strategic expansion was insufficient to keep up with a growing backlog of Year 2000 projects. It was not until after the Class Period that the Company announced that it had insufficient resources to complete current projects and to recognize revenue from backlogged orders.