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IA Global Reports Loss Decreased

For the nine months ended September 30, 2004, revenues increased to $19,862,000 from $231,000 for the same period in 2003. Gross profit increased to $3,359,000, or 16.9 % of sales, from a gross profit loss of $222,000 for the same period in 2003. The net loss decreased to $1,049,000 from $2,066,000 in the same period of 2003. The net loss per share was $.01 for the nine months ended September 30, 2004 as compared to a net loss of $.05 per share for the same period of 2003. The loss for the nine months ended June 30, 2004 included merger and acquisition expenses of $387,000 and a fixed asset write- off of $96,000.

The Company ended the September 30, 2004 quarter with cash and cash equivalents of $2,327,000, net working capital of $1,828,000 and stockholder's equity of $3,179,000. Stockholder's equity was negatively impacted by the Yen/Dollar exchange rate by $89,000 for the quarter and $169,000 year to date.

The company's CEO, Alan Margerison, said, "We are pleased with the results of our business for the third quarter of 2004. Since the acquisition of Rex Tokyo in March 2004, we have been very encouraged by their performance. The expansion of the business by acquiring two new sales offices and a joint venture agreement should continue to improve their revenues. Revenues, net assets and shareholder's equity for IA Global have significantly improved this year."

Rex Tokyo Co Ltd

Rex Tokyo recorded revenue of $7,490,000 for the quarter and $17,127,000 year to date. The business was acquired March 18, 2004. We continued to expand this business by acquiring new sales offices in Kyushu and West Tokyo, Japan. In addition, Rex Tokyo entered into a joint venture agreement with Kyushu Tesco Co Ltd. for the supply of lighting fixtures to the Pachinko industry in October, 2004.

The quarter ending December 31 is typically stronger than the quarter ending September 30 quarter because new Pachinko stores openings are higher during this quarter.

Fan Club Entertainment Co Ltd

Fan Club recorded revenue of $906,000 for the quarter and $2,660,000 year to date. We re-positioned this business by creating a creative design studio focusing on web and traditional print media delivery, including the Marvel characters through its work in providing services to the official Fan Club in Japan for Marvel Entertainment Inc. and Marvel Characters Inc.

IA Global Acquisition Co recorded revenue of $53,000 for the quarter and $74,000 year to date.

On September 15, 2004, the company announced the refocusing of its holdings related to QuikCAT Technologies and QuikCAT Australia, following the successful purchase of the QuikCAT Technologies, Inc. assets out of Chapter 11on June 10, 2004.

The company's focus will be on the development of its multi-media compression technologies for use in video, picture and audio products and it will pursue licensing contracts with third party vendors. The company has decided to divest the Internet accelerator business ("iNet") outside of North America to its joint venture partner QuikCAT Australia Pty Ltd. ("QuikCAT Australia"). The company is pursuing the licensing contracts with third party vendors. There is no guarantee that this approval the company will be successful in closing licensing agreements.

Outlook

The company expects revenues for the quarter ending December 31, 2004 to be in the range of $8,500,000 to $10,000,000 as compared to $914,000 for the same period in 2003. The increase in projected revenues from the third quarter reflects the growth of and the seasonality of the Rex Tokyo business.

IA Global, Inc. is a public holding company focused on acquiring Japanese and US companies that operate in the entertainment, media and technology areas. We hold a 60.5% equity interest in Rex Tokyo Ltd., a supplier and maintenance contractor of parts to the Pachinko and slot machine gaming industry in Japan. Through our 67% equity interest in Fan Club Entertainment Ltd., we are a creative design studio focused on web and traditional print media, including providing services to the official Fan Club in Japan for Marvel Entertainment Inc. and Marvel Characters Inc. We hold a 95% equity interest in QuikCAT, a leading multi-media compression technology company, which has developed several patent video, picture and audio compression algorithms (codecs).

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