International Assets Holding Corporation Completes Private Placement of $27 Million in Senior Subordinated Convertible Notes.

ORLANDO, Fla. -- International Assets Holding Corporation (Nasdaq:IAAC) (the "Company") announced today that it has completed the previously announced private placement of $27.0 million in aggregate principal amount of the Company's senior subordinated convertible notes due 2011 to certain institutional accredited investors. The net proceeds from the sale of the senior subordinated convertible notes were approximately $25.2 million, after payment of placement agent fees and estimated offering expenses.

The notes were issued only to accredited investors in accordance with Section 4(2) under the Securities Act of 1933, as amended (the "Securities Act"), and the rules and regulations promulgated thereunder. Neither the notes nor the underlying shares of common stock have been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. In connection with the private placement, the Company has agreed to file a registration statement to register for resale the common stock issuable upon conversion of the notes.

This press release is neither an offer to sell nor a solicitation of an offer to buy any of the senior subordinated convertible notes or any shares of common stock of the Company that may be issued upon the conversion thereof, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.