INTEGRAL Defeats Challenge to Its Antenna Intellectual Property.

Business Editors

BELLINGHAM, Wash.--(BUSINESS WIRE)--Sept. 25, 2001

Integral Technologies, Inc. (OTCBB:ITKG) ("INTEGRAL"), announces that by court order of the United States District Court, all claims made by IAS Communications, Inc. ("IAS") of Vancouver, B.C., Canada against INTEGRAL and its subsidiaries Emergent Technologies Corporation and NextAntennas.com, Inc., have been dismissed with prejudice.

In its claims against INTEGRAL and its subsidiaries, IAS Communications, Inc. was seeking damages of no less than $15 million.

Commenting on the dismissal, William Robinson, Chairman of INTEGRAL stated: "IAS has held INTEGRAL and its shareholders hostage long enough. The dismissal of the lawsuit is conclusive proof that the claims made against INTEGRAL, by IAS Communications, Inc. through its President and Director, John Robertson, were unfounded, frivolous and ultimately injurious to the shareholders of INTEGRAL."

William Robinson stated: "Since the filing of the lawsuit in May, 2000 INTEGRAL vigorously defended against the groundless claims made against the Company. In particular, INTEGRAL demanded that IAS produce evidence substantiating the allegations it made against INTEGRAL and its subsidiaries. When IAS failed to provide us with the proof, the U.S. District Court ordered IAS to provide us the information. Despite three orders from the court compelling IAS to produce the information, IAS refused to provide us with the proof that would substantiate the claims made in its lawsuit. Presumably, this was because no such proof existed."

Robinson went on to say: "IAS initiated this lawsuit based on its belief that the antennas INTEGRAL was marketing to the commercial marketplace were based on the Contrawound Toroidal Helical Antenna (CTHA) technology. IAS acquired the marketing rights for the CTHA for the commercial marketplace through a sub-license agreement with Integral Concepts Inc., owned by Dr. James Smith, who licensed the technology from West Virginia University, the owner of the technology. INTEGRAL through its subsidiary, Emergent Technologies Corporation acquired the marketing rights for the CTHA for the Government/Military marketplace through the same type of sub-license agreement. The little evidence that IAS Communications, Inc. did produce during the course of discovery did not establish a factual or legal basis for its claims against INTEGRAL in part because INTEGRAL'S antenna technology was not based in any way on the CTHA technology."

When asked to describe the effects the litigation has had on INTEGRAL, William Robinson explained: "The actions of IAS Communications, Inc. in launching this potential ruinous lawsuit, back in May 2000, coupled with the publicity relating to the litigation, has proven to be a potential barrier to INTEGRAL achieving its business objectives over the past year and a half, with the result being a potential underachievement in shareholder value. However, now that INTEGRAL has been vindicated, the Company intends on focusing its energy on continuing to expand its business development."

The Company will diligently act to protect its intellectual property through appropriate avenues. Any challenges to INTEGRAL'S intellectual property rights will be vigorously prosecuted, to safeguard the Company's property interests.

This press release contains "forward-looking statements" within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. Actual results could differ materially, as the result of such factors as (1) competition in the markets for the products and services sold by the company, (2) the ability of the company to execute its plans, and (3) other factors detailed in the company's public filings with the SEC. By making these forward-looking statements, the Company can give no assurances that the transaction described in this press release will be successfully completed, and undertakes no obligation to update these statements for revisions or changes after the date of this release.

For more detailed information on the company and the technologies described above please visit our web site at www.itkg.net or contact Shareholder Relations at 888/666-8833 or Mark N. Tyler, at T.T. Communications, Inc., at 212/962-3690.