ITEX Announces First Quarter Results Of Fiscal 2008

ITEX Corporation (OTCBB: ITEX), a leading marketplace for cashless business transactions in North America, has filed its Form 10-QSB with the Securities and Exchange Commission and announced results for its fiscal 2008 first quarter ended October 31, 2007.

Revenue for the 2008 first quarter increased by 2% over the same quarter in the prior year, in which ITEX reported $357,000 of unique conversion revenue from former BXI members who had changed fee plans. Without the one-time conversion revenue in 2006, revenue would have reflected an increase of $420,000, or 12% over the comparable 2006 quarter. Organic growth from existing operations contributed $92,000 to this revenue increase.

Included in the recent financial statements is $21,000 in ITEX dollar transactions that met non-monetary recognition criteria of Accounting Principle Board 29. In past periods, ITEX dollar transactions did not impact these statements because it was determined they did not meet non-monetary recognition criteria or were not material.

Steven White, Chairman and CEO, stated, �Comparing year over year quarters and excluding the one-time conversion revenue in last year's first quarter, our income from operations increased 28%. Our fiscal 2008 first quarter results also included acquisition costs for our Intagio transaction. Overall, I'm quite pleased with the results for this quarter.

�More good news to report is that our acquisition of Intagio members in August 2007 contributed $287,000 in revenue this quarter. Despite a few challenges during the transition, we are very satisfied with the early results of the acquisition. Of the six Intagio regions acquired, three regions were sold in the first quarter and we retained three to operate as corporate-owned or prototype offices.

�Within our prototype offices, we are able to implement new commission structures, test new support fees and pursue other strategies to increase revenues and better serve members. We have focused on organic growth and are pleased to see traction in our revenue growth strategies. Further, new member registrations for the quarter were 823 compared to 669 in the comparable period for the previous year, representing a 23% increase.

�Everything considered,� White reflected, �this was a strong quarter. If we adjust for acquisition costs and one-time conversions, our revenue and income from operations this quarter had impressive gains over last year's numbers. We exhibited some ITEX dollar revenue and expenses in our financial statements this quarter. Though the amount of these transactions is less than one percent of our total revenue for the quarter, we clearly identified and disclosed the amount of revenue and expense generated by these ITEX dollar transactions on our income statement.

�Considerable time and effort was devoted this quarter to the integration of the Intagio members. The integration is now completed; our new corporate-owned offices and our broker network is geared up for our busy holiday season,� he concluded.

First Quarter 2008 Highlights:

�         Revenue was $3,853,000.

�         Intagio acquisition added $287,000 in revenue.

�         Income from operations totaled $272,000.

�         Net cash provided by operations was $767,000.

�         Total assets were $15,290,000.

�         202,384 common shares were repurchased and canceled.

�         $1,000,000 credit line was renewed.

�         Qualified ITEX dollar transactions were reflected in our financial statements.

ITEX Corporation's report on Form 10-QSB can be found at www.sec.gov.