ITEX Corporation Completes Intagio Acquisition

ITEX Corporation (OTCBB:ITEX), a leading marketplace for cashless business transactions in North America, reported it had completed the acquisition of the trade exchange marketplace previously operated by Intagio Corporation of San Francisco. (See Tuesday Report dated July 31, 2007.)

In addition, it entered into a separate agreement with NYTO Trade Incorporation, ITEX's largest franchise, granting for $200,000 the right and license to manage the newly acquired members located in New Jersey and New York. The New York franchise is owned and managed by John Castoro, president.

Chairman and CEO Steven White, stated, “We are pleased to have successfully completed this acquisition, expanding our member base in the ITEX community as well as contributing to the growth of our franchisees. We swiftly reached an agreement with our largest franchise to manage a group of our newly acquired members (from Intagio).

“We are confident John and his team will quickly welcome and assimilate these members into our trading community,” continued White. “The remaining members will be closely managed by corporate-owned offices in San Francisco, Chicago, Cleveland, and two suburbs near Hartford (CT).

Castoro, president of NYTO Trade Incorporation, purchased the right and license from ITEX to manage certain former Intagio members in New York and New Jersey. This transaction creates an enterprise for him that generates nearly $1.25 million in cash transaction and subscription fee revenue a year, with more than 1,400 members conducting $18 million per year in transaction volume.