ALYA Files SB-1 Registration With The SEC; ALYA Reports Six Month Financials.

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 15, 1999--

ALYA International, Inc. ("ALYA" or the "Company") (OTC BB:ALYAE) has completed a SB-1 registration form, which has been submitted to the Securities and Exchange Commission today.

After the normal review period and when the file has been accepted by the Commission, ALYA will be fully registered.

Revenues for the six months ended March 31,1999 were $386,795 as compared to $157,749 for the same period during 1998. Gross profit increased to $159,561 from $47,502 during the period. Loss for the six months was ($1,442,804) vs. ($904,940) or ($0.11) vs. ($0.09) per share. The weighted average number of common shares outstanding 13,443,010 vs. 10,622,463.

Revenue in the second half is expected to show substantial increases, as significant orders such as those recently announced from the Puerto Rico Telephone Company and the US Federal Protection Agency have already more than doubled first half sales and more than tripled sales for all of 1998.

General and administrative expenses for the period were $771,916 as compared to $521,279. The Company hired additional staff for technical support, accounting and administration, and product management and more than doubled its rented premises.

Research and development expenses for the period were $434,008 compared to $246,934 for the same period during 1998. The increase was the result of the hiring of six new staff near the end of the fiscal year ended September 30, 1998, and the hiring of five additional people for our software development team during the period.

Marketing and sales expenses were $395,128 and $183,616 for the six months ended March 31, 1999 and 1998, respectively. The increase was the direct result of increases in our marketing activities. Specifically, we opened a sales office in Austin, Texas in April of 1998, a sales office in Belgium in November 1998, and a sales office in Beijing, China at the beginning of March 1999. In addition, we added four new staff members during the six-month period ended March 31, 1999, and two new sales executives in May of 1999.

ALYA International, Inc. is a leader in the development of software and hardware for intelligent building control and security systems and is based in Vancouver, Canada with offices in Austin, Texas; San Francisco, California; Antwerp, Belgium; and Beijing, China. ALYA International is listed on the OTC bulletin board under the symbol ALYAE.