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ASX/Media release

Fifth defence contract milestone completed
19 October 2006

Phase imaging company, Iatia (ASX:IAT) announced today that it has successfully completed the fifth milestone under its Capability and Technology Demonstrator (CTD) contract with the Defence Science and Technology Organisation (DSTO).

Iatia's Chief Scientific Officer, Dr Brendan Allman will be presenting a paper on Iatia's CTD progress and results at the Land Warfare Conference 2006 being held in Brisbane during 24th to 27th October. This paper will be made available in a later release. Iatia will also have a booth at the accompanying trade show.

Iatia will receive a $135,000 progress payment for the completion of Milestone 5 under the $2,700,000 CTD contract.


About Iatia Limited
Iatia Limited (ASX:IAT) is a leading wavefront imaging company. Iatia's high resolution digital technology allows you to see the invisible. Iatia licenses its globally patented technology, QPI, for imaging in the life sciences, ophthalmology, nanotechnology and defense. Based in Melbourne, Australia, Iatia is listed on the Australian Stock Exchange.

About the CTD contract
In late June 2005, Iatia signed a $2,700,000 contract with the Defence Department’s Defence Science and Technology Organisation (DSTO). This Capability and Technology Demonstrator (CTD) contract is the largest announced by the Department under that round of CTD activities. Defence represents a new field of application for Iatia’s unique imaging technology. It utilises conventional digital imaging capability, and produces a new image based on shape information alone that is independent of the image provided by colour and contrast. This image is then suitable for further processing by conventional image enhancement, image-processing and image-recognition software. The potential uses include passive ranging, shape imaging, defeating camouflage, and in developing novel image processing algorithms. Iatia is now developing a reflection-based algorithm suitable for extending shape imaging to greater distances.



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