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INTERNATIONAL ELECTRONICS, INC.

(Name of Registrant as Specified in its Charter)

RISCO LTD.

ROKONET INDUSTRIES, U.S.A., INC.

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Presentation for

Presentation for

The following is a slide presentation presented to Institutional

Shareholder Services by RISCO Ltd. on May 10, 2007.

2

Company Overview -

Risco

Company Overview -

Risco

Established in 1979 and privately owned

Headquartered in Israel with operations in Europe and North

America

A leading provider of innovative integrated security systems and

solutions

Growing rapidly, highly profitable and well capitalized

Successful acquirer and integrator of complimentary businesses

Over 600 employees

Seasoned management team

3

IEIB –

Stock Price Performance & Volume

IEIB –

Stock Price Performance & Volume

Stock Price & Volume Performance, May 09, 2005 - May 09, 2007

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

0

50,000

100,000

150,000

200,000

250,000

10/31/06 -

Risco issues

bear hug letter to IEIB -

$1.70

International Electronics

Inc Average Price and

Volume –

May 09, 2005 –

Oct 30, 2006

Average Price:

$1.84

Average Volume:

3,200

3/6/07 -

Risco issues

tender offer -

$2.98

4/30/07 -

Risco

increases offer price to

$4.00 -

$3.53

IEIB’s stock had been stagnant until recent overtures by Risco

4

Market Indices Performance

Market Indices Performance

From May 2005

until end of year

2006, IEIB

underperformed

its peers as well

as the broader

market indices.

Security

index

includes

Magal

Security

Systems

Ltd,

Napco

Security

Systems

Inc

and

Vicon

Industries

Inc

50

75

100

125

150

175

200

225

250

Security Index

Dow Jones Industrial Average

NASDAQ Composite

S&P 500

IEIB

10/31/06 -

Risco

issues bear hug letter

to IEIB -

$1.70

5

IEIB Financial Performance

IEIB Financial Performance

Management of IEIB has failed to create value for shareholders

2004

2005

2006

2007

(1)

Revenue

11,393,708

$ 

12,646,997

$ 

14,120,979

$ 

8,492,499

$ 

Cost of Sales

6,626,589

6,978,820

7,663,956

4,656,630

Gross Profit

4,767,119

5,668,177

6,457,023

3,835,869

     Gross Margin

41.8%

44.8%

45.7%

45.2%

Research & Development Expenses

1,177,463

1,228,920

1,292,096

671,410

Selling, General & Administrative Expenses

4,257,437

5,162,954

5,617,400

2,870,698

Total Operating Expenses

5,434,900

6,391,874

6,909,496

3,542,108

Operating Profit (Loss)

(667,781)

(723,697)

(452,473)

293,761

Net Income (Loss)

(1,125,482)

(720,027)

(406,821)

254,249

Net Income (Loss) Per Share

(0.68)

(0.42)

(0.23)

0.14

(1) Represents results for the first six months of 2007

IEIB has incurred significant losses in the past three years

–

Aggregate per share losses for FY 2004-2006 equal $1.33 per share

–

At an earnings rate of $0.28 per share, IEIB will need 4.75 years to recoup previous losses

Management has not put forth a clear strategy that articulates how they can recoup these

losses with such limited resources at their disposal

6

IEIB Management Comments

IEIB Management Comments

Management’s guidance have been overly optimistic and have not

delivered on prior commitments to create shareholder value

“We look forward to the efforts that have been made in both product development

and expansion of our channels of distribution to pay dividends in fiscal 2006.”

–

John Waldstein, Chairman & CEO, November 28, 2005

“The Company continues to believe that the markets and the opportunities afforded

it by the development of the eMerge™

and the Powerkey™

product lines are

significant.”

–

John Waldstein, Chairman & CEO, January 17, 2006

“Our flagship product line, the eMerge

Browser Managed Security Platform,

continues to do well as more dealers adopt it as their product of choice in security

management.”

–

John Waldstein, Chairman & CEO, July 13, 2006

7

Relative Size –

IEIB vs

Access Control Market

Relative Size –

IEIB vs

Access Control Market

($ in millions)

IEIB remains a niche and marginal player in an industry dominated

by large security product providers

$14.1

$4,400.0

IEIB

U.S. Electronic

Access Control

Industry

8

IEIB Issues

IEIB Issues

Marginal player with very limited product offering

–

IEIB does not own the IP for its “flagship”

product

Weak management team that has consistently failed to deliver

–

John Waldstein is the Chairman, CEO, President, CFO and Treasurer

Weak corporate governance structure

–

Unaccountable management team and Board

–

BOD does not have a governance or nominating committee

–

Audit committee composed of only 2 members

–

Board has 4 members including one insider

Limited liquidity and institutional shareholder base

–

The  company has been traded on the over-the-counter market since July of

2005

–

Average recent

(1)

daily trading volume is 3,200

–

Two institutional shareholders representing 10.4% of the outstanding shares

–

Management has given no indication that it is working to get IEI

shares re-

listed on Nasdaq and create liquidity for stockholders

(1) Trading volume from May of 2005 to October of 2006

9

IEIB Issues

IEIB Issues

Limited financial wherewithal to embark on growth and strategic

initiatives

–

As of February 28, 2007, IEIB had $1.1mm in cash

–

The company does not have adequate financial resources to augment its

product offerings and develop a robust sales and distribution channel

required to compete in today’s competitive marketplace

–

The company continues to squander its limited financial resources by

resisting to consider a full and fair proposal by Risco

IEIB’s claim that Risco’s offer is “substantially less”

than other offers is

undocumented 

IEIB has proven to be unwilling to consider the interests of its

shareholders and negotiate a consensual transaction

IEIB is not well positioned to create near or long-term shareholder

value

10

Risco Offer for IEIB

Risco Offer for IEIB

Risco’s offer for IEIB does not include conditionalities that are

often found in similar proposals including:

–

Financing contingencies

–

Completion of due diligence

–

Approval by Buyer’s stockholders

–

Tender by sufficient stockholders for “back end”

merger

–

Registration of Buyer securities in non-cash deal

Risco’s only “unique”

conditions are:

–

50.1% tender

–

Approval of voting rights

–

Satisfaction of business combination statute

Risco’s offer for IEIB minimizes uncertainties

11

Risco Offer for IEIB

Risco Offer for IEIB

A significant premium

All cash

High degree of certainty

No financing or other contingencies 

Risco believes that the proposal it has put forward for IEIB is

adequate and is in the best interest of shareholders