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IA Global Subsidiary, Rex Tokyo, Establishes Joint Venture

BURLINGAME, California – (PRESS RELEASE) -- IA Global Inc. (Amex: IAO) announced that Rex Tokyo signed an agreement to establish a joint venture company in Japan on September 6, 2004. This joint venture will be 60% owned by Rex Tokyo and 40% owned by Kyushu Tesco Co Ltd. The joint venture company (Timothy World Co. Ltd.) expects to sign an exclusive sales agreement with Kyushu Tesco for the supply of lighting fixtures to the Pachinko industry in September 2004.

Kyushu Tesco has developed a unique down-lighting fixture that allows three times the lighting capacity to be achieved from a standard fixture, thus reducing running costs of the lights. Rex Tokyo has already test marketed the lighting system to a number of its clients. This joint venture will enable Rex and Tesco to market the lighting system to a much wider client base. The joint venture company expects revenues of $2,000,000 during 2004 and $5,000,000 on an annual basis.

Rex Tokyo will contribute approximately $55,000 out of working capital and loans for its 60% interest in the joint venture company. In addition, Rex Tokyo expects to provide a working capital loan as the business increases.

Rex Tokyo is a supplier and maintenance contractor of parts to the pachinko and slot machine gaming industry in Japan. They also contract to carry out regular maintenance of the machinery within these stores.

The company's CEO, Alan Margerison, said, "We are extremely pleased to announce this business expansion project. Rex Tokyo continues to perform strongly in the supply, maintenance and fitting of machinery for the Pachinko and Japanese machine gaming industry, an area which it has shown itself to be a leader."

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