Interactive Technologies.com, Ltd. Creates New Company - International Merchantcard Services, Inc.

Business Editors/Technology Writers

DELRAY BEACH, Fla.--(BUSINESS WIRE)--Aug. 14, 2001

Interactive Technologies.com, Ltd. (Pink Sheets:INTR), a provider of high-technology Internet and e-commerce solutions, today announced the consolidation of INTR and its subsidiaries.

Through the consolidation of three of its subsidiaries, INTR is planning on creating a company named International Merchantcard Services, Inc. ("IMSI"). INTR is planning on spinning off IMSI to the INTR shareholders, tax free. More details will be included in a press release to follow.

With the down-turn in the Dot Com economy and limitations on e-commerce companies to receive financing, INTR has been downsizing and consolidating its subsidiaries and assets since August of 2000.

The following is brief chronology of the events that have occurred since February of 1999, INTR's inception.

February 1999 - INTR was created as a result of a reverse acquisition in February of 1999, into Interfund Resources, Inc. As a result of the reverse acquisition INTR became the parent company and owned 80% of JoinUsOnline.com, Inc. ("JUOL"), 80% of United Interactive Technologies, Inc., 80% of Integrated Merchant Services, Inc. ("IMS"), and; 80% of WebClassified, Inc. ("WCI").

August of 1999, INTR received a 40% equity position of TVI Marketing, Inc.("TVI"), a TV/Internet marketing company. INTR was to provide Internet consulting services for their equity position.

September of 1999, INTR acquired, 100% of Express Financial Corp. ("Express"), a Florida based retail Mortgage Company.

In April of 2000, INTR acquired 80% of GKB Software, Inc. ("GKB"), a New York corporation. Originally formed in 1997, an "Industry Specific Portal" developer and provider.

August/September 2000 - UIT, INTR's subsidiary that developed the software and technology utilized by INTR and its subsidiaries, had completed their projects and the employees, outside of management, were laid off or terminated.

In September of 2000 INTR acquired 100% of ITransact.com. ("ITransact"), a Utah corporation. Originally formed in 1997, ITransact.com. was created as an Internet payment gateway company.

October 2000 - TVI Marketing, a company that INTR had a 40% ownership interest in, did not receive the complete funding it had arrangements for and temporarily ceased its operations. INTR owned 40%, a company named Members Choice owned 40% and Bromark owned 20%. INTR was not responsible for any funding under their arrangement. Bromark was responsible for the funding. However, INTR advanced money to TVI, as well as provided programming for TVI Marketing. A financial settlement agreement was reached between the shareholders of TVI Marketing and INTR. The arrangement has not been consummated and Members Choice has since been merged with a public company and the TVI Marketing assets under the symbol MSYS. INTR is looking at all of its legal options.

On March, 31 2001, INTR transferred its ownership position in GKB back to the original GKB shareholders. The transfer was done to eliminate the financial support INTR was responsible for under the acquisition terms, the need to raise capital for future growth of GKB and to reduce the re-pricing liability to INTR under the original terms of the acquisition. As part of the terms, Integrated Merchant Services, Inc. has received preferred pricing and licensing fees for GKB's "Industry Specific Portal" technology and both INTR and JUOL will receive preferred pricing on future programming.

On May 31, 2001, INTR transferred ownership of Express, back to Robert Banner, the original owner of Express. The reason for the transfer was that the on-line mortgage business did not create the revenue anticipated and the additional capital required to increase the on-line business was not in the INTR budget. As part of the terms, JUOL has received preferred pricing for an Express Net Branch Office Agreement, which will allow JUOL to receive revenue from the mortgages referred and processed through JUOL at preferred commissions.

On or before August 31, 2001 INTR plans on consolidating three of its subsidiaries, IMS Transition Corp,, Integrated Merchant Services, Inc. and Itransact.com, Inc. The new company will be named International Merchantcard Services, Inc. ("IMSI"). All the companies are in the Visa/Master Card business. IMS is the "Brick and Mortar" side of the business and ITransact is the Internet side of the business. They complement each other and both companies will be able to take advantage of their existing personnel to increase profits. ITransact will handle all of the operations and IMS will concentrate on increasing sales. This merger allows both companies to concentrate on their strengths.

On or before, September 1, 2001, INTR plans on spinning off its interests in IMSI to the INTR shareholders as a tax-free dividend. All INTR shareholders of record, as of September 1, 2001, would receive shares in IMSI, tax free. The amount of shares that each INTR shareholder receives will be determined by dividing the amount of issued and outstanding shares of INTR and the amount of issued shares in IMSI. This amount will be determined on September, 1, 2001. IMSI plans on either registering to be a public company or merge into an existing public company. There will be a separate press release on the spin-off coming out shortly.

On or before September 1, 2001, INTR also plans to orderly shut down UIT and WCI. INTR does not require the services or software development from the companies any longer. Both companies were basically development and hosting companies, that technologies have been incorporated into INTR, IMS and/or JUOL.

The end results of the downsizing and consolidation have INTR becoming an operating company, with revenues related to technology and software development, an 80% ownership in JoinUsOnline.com, Inc.("JUOL") and IMSI.

William Becker, CEO of INTR stated, "It has been a tough 12 months for INTR and we have attempted through the downsizing and consolidation of INTR and its subsidiaries to create a more stable environment for our shareholders to get a fair return on their investment."

For additional information, please visit the company's Investor Relations Web site at http://www.intr-info.com.

This release contains forward-looking statements which are based on current information available to management and which are subject to other important factors disclosed, including specifically, among other factors, changing market and economic conditions.