Integral Announces Value Added Reseller Agreement Between Continental Divide Robotics and BI, Inc.

Business/High Tech Editors

BELLINGHAM, Wash.--(BUSINESS WIRE)--Aug. 8, 2000

Integral Technologies, Inc. (OTCBB:ITKG), today announces that Continental Divide Robotics (CDR), has entered into a Value Added Reseller (VAR) agreement with BI, Incorporated (www.bi.com) of Boulder Colorado. Integral Technologies, Inc. (Integral) recently announced it has executed a letter of understanding to acquire a 40% interest in CDR.

Established in 1978, BI is the largest provider of personal electronic monitoring equipment and services in the world, possessing a 76% market share both domestically and internationally. BI has contracts with over 2,000 government agencies including the Administrative Office of the United States Courts, the largest electronic monitoring program in the world, as well as 32 state contracts in the US. Through the Federal Courts, BI monitors approximately 4,200 federal probationers, pre-trial detainees and inmates on early release from the Bureau of Prisons. To date, BI has delivered in excess of 100,000 electronic monitoring units and monitored more than 2,000,000 offenders.

Under the terms of the VAR agreement, BI will resell CDR's proprietary Artificial Intelligence (AI) software, designated the "Global Tracking System" ("GTS") under the name "Skyguard 500" to its 2,134 existing contracts. BI will be responsible for providing all marketing, agency training and customer technical support. CDR will manufacture the tracking units, and provide engineering support for the Central Monitoring System software.

The anticipated rollout of the Skyguard 500 system is expected to begin in October 2000, with the total number of units being used to track offenders expected to exceed 6,000 by October 2001. CDR will receive a significant percentage of the monitoring revenue, generated on a per diem basis from offenders enrolled in the system.

CDR's proprietary AI software uses the military's Global Positioning System, the nation's wireless telecommunications infrastructure, and the internet to provide corrections officers worldwide with accurate, real time offender locations 24/7. The system provides detailed restriction zones, offenders movement history, and five levels of alert status. In addition, probation and parole officers can access real-time tracking data from their office, home or car by accessing the internet through their desk-top computer, or Personal Digital Assistant (PDAs) such as internet ready cell phones and Palm type devices. The resultant ability to constantly monitor offender locations offers significant cost savings over conventional incarceration and enhances the safety and security of the public at large.

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.nextantennas.com or contact Shareholder Relations at 888/666-8833 or Mark N. Tyler, at T.T. Communications, Inc., at 212/962-3690.