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IMS Secures $9.5 Million in Common Share Funding Led by ASA Consultants W.L.L. of BahrainCapital to be used for working capital and market expansion and development for the Company's iPaid, DriveSync and Ridetones products Waterloo, ONT - March 15, 2006 - Intelligent Mechatronic Systems Inc. ("IMS"), a company specializing in the creation, development and marketing of leading edge proprietary technology that blends mechanical engineering, electronic control and information systems to make technologically advanced products today announced that it has secured $9.5 million in Common Share funding. The investment was made by several individuals and companies including ASA Consultants W.L.L. ("ASA") of Bahrain. "We are pleased to welcome new investors to the Company. The investment confirms the strength and potential of the products that the Company has developed", said Dr. Otman Basir, the Company's founder and Chief Executive Officer. The Company has developed the following products: iPaid™ is a GPS vehicle tracking system for usage-based insurance (UBI). It securely tracks individual trips and accumulative mileage. At a more detailed level, iPaid™ tracks when, where, how far, how fast and how aggressively a vehicle is being driven. This information is tracked via GPS satellites and stored on the iPaid™ in-vehicle device and USB data key. Results are viewed by detaching the data key and inserting it into a computer USB port. Data is encrypted and uploaded to the iPaid™ server, where it is generated into reports, maps and usage alerts. These reports are accessed via a secure, password-protected website. By providing conclusive proof of vehicle use and driver behavior, iPaid™ enables drivers to guide their auto insurance rates and coverage based on how often and how safely they drive. This can lead to variable insurance costs, which encourages less driving, subsequently reducing the number of cars on the road. Fewer cars means reduced traffic volume and congestion, and decreased levels of vehicle-emitted pollutants. With so many benefits to insurance companies, individuals and the community, UBI is expected to become a standard auto insurance offering worldwide. UBI pilots are currently being run in the UK, the Netherlands, Israel and other countries. In fact, IMS just successfully completed the initial phase of their multi-phase pilot with Winterthur Group (a division of Credit Suisse) in Germany. As more insurance companies adopt UBI or PAYD (pay as you drive) programs, the demand for products like iPaid™ will only increase. DriveSync™ enables parents and commercial fleet owners to track when, where, how far, how fast and how aggressively a vehicle is being driven. This information is tracked passively via GPS satellites and recorded on an in- vehicle DriveSync™ receiver and USB data key. Because the information is tracked off-line, DriveSync™ eliminates the high monthly service fees associated with other GPS vehicle tracking systems. Results are viewed by detaching the data key from the receiver unit and inserting it into a computer USB port. The vehicle tracking results are uploaded to a DriveSync™ server where the data is interpreted and consolidated into customized reports. These reports, including trip logs, route maps and usage alerts, are viewed via a secure, password-protected website. The results provide a detailed analysis of vehicle use and driver behavior. DriveSync™ provides parents with a clear picture of their teen's driving behavior, including speeding and aggressive driving habits. Prepared with this information, parents can discuss with their teen issues of driving safety, responsibility and accountability. Likewise, DriveSync™ can help parents measure their teen's driving progress, and set driving privileges accordingly. DriveSync was recently introduced to the market at the Consumer Electronics Show in Las Vegas. Since its introduction the Company has received outstanding indications of interest in the product and has recently begun to ship units. The same training applications can be used for fleet drivers. By highlighting risky driving behavior, DriveSync™ allows fleet owners to identify, and correct, unsafe driving practices. DriveSync™ can also facilitate more efficient driving behavior. The accurate tracking of routes, mileage and speed enables fleet owners to anticipate and effectively manage vehicle insurance, gas and maintenance costs. That same data can further be used for forecasting and budgeting purposes. RideTones® enables users to add audio tones, such as music, movie and sound FX clips, to various vehicle functions. The process is similar to downloading MP3 files to a cell phone; users download tones from the RideTones® website and assign a tone to a specific vehicle function: lock, unlock, trunk release, hood release, alarm, ignition start, window open/close and door open/close. Instead of the standard 'beep' that accompanies most vehicle remote keyless systems, users can unlock the car doors to their favourite song. In cases where there is no standard audio indicator (such as the truck release), RideTones® allows one to be added. Audio functions can be further customized to play based on time, date and temperature variables; for example playing 'happy birthday' or voice reminders for appointments. In addition to iPaid™, DriveSync™ and RideTones® the Company has developed several technologies related to automobile safety including an Occupant Classification System ("OCS") for use in airbag deployment and a proprietary capacitance based Seat Belt Reminder ("SBR") system. The funding will be used primarily to accelerate to power IMS's continued international expansion, finance marketing programs and working capital requirements. The company does not anticipate the need for additional financing and expects to reach profitability with this round of investment. "We are excited with our investment in IMS, an outstanding young Canadian technology company. The Company's products are positioned in market segments which we believe have extremely attractive growth prospects", said Jan Peter Faberij de Jonge of ASA. About ASA Consultants W.L.L.ASA Consultants was established in Bahrain in 1994 by Abdulla A. Saudi, the founding President and Chief Executive of Arab Banking Corporation. ASA Consultants is an independent advisory firm licensed by the Bahrain Monetary Agency with offices in Bahrain and Libya. The Company provides a wide range of corporate finance, institutional investment and M&A services to regional and international financial institutions, governments and corporations. About IMSIMS is a company specializing in the creation, development and marketing of leading edge proprietary technology that blends mechanical engineering, electronic control and information systems to make technologically advanced products. IMS has three divisions; Safety Devices for use in automotive applications, Telematics which includes iPaid™ and is focused on UBI, and Automedia delivering consumer products into the automotive aftermarket. IMS is based in Waterloo, Ontario, Canada. www.intellimec.com Contact:John Reynolds
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