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Press Release

MENLO PARK, Calif., July 30, 2006 - Intelligent Artifice, Inc. (Nasdaq: AIUS) announced today the beta release of its flagship product, the Dance-O-Matic 3000. Developed over thirteen years by a dedicated team of engineers, programmers, and finishing schools, the Dance-O-Matic 3000 (U.S. patent nos. 1322141232, 1243365443, and 4654322143) is the world's first dancing toy ever to pass the Turing/Baryshnikov Test, performing undetected on stage as a water nymph in the Los Angeles Ballet Company's production of Ondine.

"The Dance-O-Matic 3000 represents a breakthrough in dancing toy technology," said Steven Poole, vice president of marketing at IA. "Capable of accurately mimicking over 2000 human dances--everything from Merengue to the Hora to the Funky Chicken--its versatility, its grace and beauty, and its ninety minute charging time are unmatched by competing products."

Lightweight and portable, the Dance-O-Matic 3000 can be easily carried by two adults or a small group of stout children.

"Or perhaps a pony," mused Poole.

As its first public demonstration of the DOM3000, Intelligent Artifice produced a short film featuring the toy interacting with several of IA's lead engineers. The song chosen for the demo was "A Million Ways" by Okgo, a band you may remember from such music videos as "Get Over It," "Invincible," and an award-winning advertisement for Dramamine(R) directed by Olivier Gondry. The film can be seen on the company web site and on youtube.com.

"You'll swear the toy seems more lifelike than the engineers," quipped Poole. "They're such pasty-faced dweebs."

Features slated for the upcoming GA release are lip synching, support for ANSI standard toe shoes, and improved water resistance.