ITEX Announces Third Quarter Results For Fiscal 2007

ITEX Corporation (OTCBB: ITEX), The Membership Trading Community, filed its Form 10-QSB with the Securities and Exchange Commission reporting results for its fiscal 2007 third quarter ending April 30.

Net cash provided by operating activities and operating income showed strong gains this quarter even though there was a 5% decline in revenue from the same period last year. “We attribute the decline in revenue primarily to the continued consolidation of broker offices and member accounts since the acquisition of BXI,” explained Steven White, Chairman and CEO.

“Our margins, costs and expenses are right where they should be; allowing us to invest in our technology and revenue growth initiatives while we continue profitable operations.

“Revenue growth is our number one priority. We introduced our new Executive Privileges Program to our franchise network at the end of the third quarter that we anticipate (should assist in) increased member growth and retention which will translate into increased transaction volume, revenue and net income.

Highlights of the 2007 third quarter include:

• Operating income was $423,000 compared to $365,000 for the third quarter in fiscal year 2006, a 16% increase.

• Operating income for nine months was $1,246,000 compared to $955,000, a 30% increase.

• Net cash provided by operating activities increased 31% to $577,000 compared to $440,000 in the third quarter in fiscal 2006

• Net cash provided by operating activities for the nine month period was $1,944,000 compared to $1,790,000, a 9% increase.

• Revenue was $3,265,000 compared to $3,419,000 for the third quarter in fiscal year 2006, a 5% decrease.

• Revenue for nine months was $10,720,000 compared to $11,140,000, a 4% decrease.

• Selling, general and administrative costs increased 2% to $156,000 compared to $153,000 for the third quarter in fiscal 2006.

• Selling, general and administrative costs for the nine month period were $830,000 compared to $1,136,000, a 27% decrease.

• More than $62,000,000 in transaction volume was completed by processing more than 129,000 transactions.