I.S. is long developed before that, if my interpretation is right.
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The actual name is 'Infinite Stratos'. It was originally created as a multipurpose power suit for space operations.
However, its development did not go as the creator had originally intended, but ended up being modified by the other mechanic specialists involved, into a 'war machine'. However, all the other countries designated it as a 'Sport' —a so called high performance— flying device.
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Tabane-san introduced IS ten years ago, but at the beginning, no one recognized her accomplishments.
Nobody believed that it could 'surpass all current weapons'.
Some of them even felt that those words 'couldn't be trusted'.
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Tabane managed to take it to logical extreme to the point of disbelief, thus the laugh. Also, she's most definitely not alone.
Around the same time, space exploration project is mothballed, and I.S. stop receive funding.
Thus
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A year after the IS was introduced, an incident happened.
Well, it would be too weird to call it an incident, since there's nothing more critical than that point.
A hacker sent 2,341 missiles from all the countries in the world at Japan, making them unable to be controlled--and launched them all.
The whole world sunk into chaos and despair.
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