Integral Settles Litigation

Business Wire, Feb 7, 2005

BELLINGHAM, Wash. -- Integral Technologies, Inc.'s (OTCBB:ITKG) ("Integral"), announced today that it has settled all past and present claims that Integral and Mr. James Smith and his personal company Integral Concepts, Inc., have against each other. All parties will release all claims against each other. In addition, Mr. Smith will return to Integral 40,000 shares of Integral common stock.

As part of a global settlement, Integral, West Virginia University (WVU) and West Virginia Research Corp. (WVRUC) have mutually agreed to release all past and present claims that each has against each other under the following terms:

1/ WVU and WVRUC release all past and present claims it has against Integral, including $397,296 in claimed amounts, vigorously contested by Integral for past development work performed by WVURC on the Plasma Ignition Technology, the Colorvision Technology, and the CTHA Technology.

2/ cancellation of the licensing agreements between WVU and Integral Concepts, Inc, for the Plasma Ignition Technology, the Colorvision Technology, and the CTHA Technology, which had been previously sub-licensed by Integral Concepts, Inc. to Integral or its subsidiaries.

3/ WVU will issue new licensing agreements for the aforementioned technologies, directly to Integral.

In return, Integral agrees to issue 40,000 restricted shares of its common stock to WVU.

Integral Technologies Inc. has developed a new innovative electrically conductive resin based material deemed "Electriplast." The Electriplast Polymer is a patent pending, compounded, pelletized formulation of resin-based materials, which are conductively loaded or doped with a proprietary controlled, balanced concentration of micron conductive materials contained within the manufactured pellet. The conductive loading or doping within this pellet is then homogenized using conventional molding techniques and conventional molding equipment. Producing molded parts of infinite shapes and sizes associated with plastics, rubbers etcetera. Yielding an end result part, that is electrically conductive as if it were metal.

Integral's "Electriplast" composite technology allows for new antenna design and manufacturing processes. Integral's proprietary formulation of conductive materials results in a moldable antenna that can increase performance and/or improve design flexibility, and that could become part of the shell or case of any wireless device.

Integral Technologies, Inc. (www.itkg.net) has filed US provisional patents on an additional 85 plus uses for electronic applications and recipes around its ElectriPlast Technology.

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.