FORT MYERS, FL -- (MARKET WIRE) -- 07/17/2006 -- (OTCBB: IVHG) -- On July 13, 2006, we filed a preliminary proxy statement with the Securities and Exchange Commission on Schedule 14A with regard to our upcoming Special Meeting of Stockholders, which is tentatively scheduled to be held on Friday, September 15, 2006. One of the proposals to be put to a vote of our stockholders is a reverse stock split of the issued and outstanding shares of our common stock at a ratio of either one-for-eight or one-for-ten, as determined at the discretion of the board of directors to be in the best interests of the Company without further approval from our stockholders.

I would like to explain some reasons why a reverse split of the company's shares is important and beneficial to our stockholders and Innova Holdings, Inc. A reverse split of 1 for 10 means that for every 10 shares you own they will be combined into one share. In theory, the value of that one share should be worth 10 times what it was before the reverse split, although we can provide no assurance that this will occur. As an example, if you own 1,000,000 shares and they have a market value of $.025 per share before the reverse split, you will receive 100,000 shares after the reverse split and, in theory, the 100,000 shares you receive after the reverse split should have a value of $.25 per share. In both cases, before and after the reverse split, the shares in total should be worth $25,000.

Many of our stockholders have asked why we are doing this and others have been asking why we aren't doing it for the past several months. Let me address our strategy.

Our Board of Directors, financial advisors, and your management team believe a reverse split now will create a more stable capital structure enabling our company to achieve continued growth, by:

--  bringing the number of shares outstanding to a more realistic,
    manageable and attractive level, which may help generate investor interest
    in the Company and help the Company attract and retain employees and other
    service providers, and
    
--  using available shares sparingly to raise the growth capital necessary
    to fund future growth through acquisitions, product development, and to
    finance the sales and marketing activities necessary to achieve higher
    levels of sales and eventually profits.
    

Although we can provide no assurance that the reverse split will indeed lead directly to our goals, it's the opinion of our Board of Directors, financial advisors and management that it is a necessary step.

We believe we have been successful to date in achieving goals that are fundamental to our growth strategy:

--  We entered into an exclusive worldwide agreement with Mesa Robotics,
    Inc. to market and sell their industry and Military line of unmanned mobile
    robotic vehicles. We intend to concentrate on several key markets for these
    products -- the Military, Homeland Security and the First Responder markets
    including Fire, Police and Sheriffs' departments. We are moving on these
    fronts and investing cautiously in the resources that we believe will lead
    to success in this marketplace.
    
--  We acquired the business assets of CoroWare, a software system
    integrator with a focus on unmanned mobile robotics, web-based software
    services, and other system integration services. We believe that these are
    growth markets.
    
--  We developed and launched the third generation, open architecture PC
    industrial robot controller for RWT -- the URC3™ -- for which we have
    already received the first multi-unit order. Reaching the full sales
    potential of this product will require building broad awareness in the
    targeted industrial markets about the URC3's features and functions, and
    the cost benefits it provides by, we believe, extending the useful life of
    robots and other forms of capital equipment already installed, reducing the
    downtime of production systems, eliminating the need for large spare parts
    inventories, and simplifying training, programming, operations, and
    maintenance. To that end, we plan to launch aggressive advertising, public
    relations, and direct mail campaigns with industrial trade journals to
    communicate this message of the URC3's success stories by our existing
    customers.
    
--  We repaid well over one million dollars in old debt including debt
    that has burdened our balance sheet and our organization since the reverse
    merger in August 2004. We still have debt to pay down.
    

Going forward we believe there are more opportunities for growth through continued hard work, and improving our market position in the industrial and service sectors. We intend to use the new URC3 to offer retrofitting of existing industrial robots. We expect to target acquiring key companies that will compliment our technologies and possibly allow us to gain additional market share in the industrial and service robotics markets, the motion control market, and the software systems integration market. We also intend to aggressively launch a sales and marketing initiative of the Mesa Robotics line of unmanned robotic vehicles.

All of these activities will require capital -- growth capital -- and we see the reverse split as a key step in realigning the shares outstanding to be at a more balanced and reasonable level which may attract more investors to appreciate the value proposition of our company as a long term investment. I personally have been presenting the merits and attributes of our company to investors around the country for some time now, and the one question that constantly comes up is, "Why aren't you going to do a reverse split to reduce the number of shares outstanding? Then we can seriously look at investing in your company." So, we have been effective in telling potential new investors about our company, but the number of shares outstanding often is the key obstacle to new investment.

In closing, I would like to point out that in the past year we have booked new orders, fulfilled a multiple unit order with our patented open PC Universal Robot Controller, received our third US Patent office pioneer patent, obtained a single source contract from NASA's Goddard Space Flight Center for a Hubble Telescope project, reported revenue, acquired CoroWare, while still forming another subsidiary, Innova Robotics, to distribute the Mesa products into the Unmanned Robotic Vehicle markets... while retiring over one million dollars of corporate indebtedness.

I strongly believe we need to reduce the number of outstanding shares to continue our growth plan and increase our stockholders' value. I kindly ask for your support as we move towards continuation of our growth strategy. Thank you so much for your continued support.

Sincerely,

Walter K. Weisel
Chairman and CEO

www.innovaholdings.com

www.mesa-robotics.com