IRD Reports 38 Percent Increase in Earnings

Business Wire, Oct 4, 1996

SASKATOON, SK--(BUSINESS WIRE)--Oct. 4, 1996--International Road(VSE:IRD.A.) International Road Dynamics Inc. (IRD) announced today that sales for the three months ending August 31 reached $4,910,535, compared to $3,942,079 for the same period last year, an increase of 25 percent. Net earnings for the third quarter rose 38 percent to $338,518 or $0.04 per common share compared to $244,906 or $0.03 per share last year. For the nine month period, sales grew 44 percent to $11,983,295, resulting in net profit of $570,655 or $0.07 per common share. Common shares outstanding have increased in 1996 to 9.2 million.

"The third quarter of 1996 produced results that should lead to a record year for International Road Dynamics Inc.," states IRD's President and CEO, Terry Bergan. "Shipments remained strong and new orders from both North American and off-shore customers maintained the confirmed order backlog at over $10 million. In addition, the company has over $20 million in proposals and bids outstanding to potential customers around the world. As IRD continues to expand with the global deployment of the Intelligent Transportation System (ITS), I fully expect the Company's growth pattern will be maintained through the final quarter of fiscal 1996 and into 1997."

The demand for ITS technology continues to grow on a world wide scale, and IRD had identified numerous projects and secured a number of new orders from customers outside of North America. 1996 will be characterized as the year IRD established a significant global presence. In the third quarter new orders have been received from Ecuador and Bangladesh. In addition, the Company is currently engaged in delivering systems to South America, Albania, India, Pakistan, Japan, Mexico, China and Korea. As a key participant in this growing industry, IRD will continue to expand its market presence.

"As we enter the final quarter of fiscal 1996, IRD is well positioned to capitalize on the opportunities presented by the growing global ITS market," Mr. Bergan continued. "The Company has the infrastructure, capacity, expertise, and the leading edge products and services to expand with the increasing demands resulting from the economic priority being placed on improving the world's transportation systems." -0-

FINANCIAL HIGHLIGHTS - unaudited:

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THREE MONTHS NINE MONTHS

Period Ended August 31 1996 1995 1996 1995

Sales 4,910,535 3,942,079 11,983,295 8,289,135 Net Profit 338,518 244,906 570,655 (266,905) Earnings per Share 0.04 0.03 0.07 (0.03) Shareholders' Equity 4,680,705 3,036,192 4,680,705 3,036,192 --------------------------------------------------------------- -0-

NOTE TO EDITORS: The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the accuracy of this release.

CONTACT: International Road Dynamics Inc.

Cathy Brown, 306/ 653-6603

306/ 242-5599 (FAX)

(303) 355-5998 (US)

INTERNET: http://www.link.ca/~irdir