ITEX Unveils Results For Fiscal Year 2008

ITEX Corporation (OTCBB: ITEX), a leading marketplace for cashless business transactions in North America, filed its Form 10-K with the Securities and Exchange Commission and announced its results for the fiscal year ended July 31, 2008.

“We are pleased to report our fifth consecutive profitable year for ITEX,” said Steven White, Chairman and CEO. “Despite a difficult and complex economic environment in the U.S., we recorded increases in revenues, cash from operating activities, total assets and stockholder equity in 2008.”

“Revenues increased 13 percent and net cash provided by operating activities increased 15 percent in 2008. Our operational cash flows provided the capital to fund two acquisitions in 2008 adding 2,400 clients. Total assets increased 13 percent and stockholders’ equity increased 8 percent compared to 2007.

White continued, “In 2008, we expanded our visibility in the investment community by retaining an investor relations firm and a financial advisor. We have presented to numerous research analysts, portfolio managers and equity firms around the country to discuss the ITEX business model, our financial performance and expansion goals. We are confident this foundation of work will benefit stockholders.

“With the current economic uncertainty, we are well positioned to aid our member base in generating new sales and conserving precious cash. Our August 1, 2008, acquisition of the media trading platform, clients and advertising credits from The Intagio Group. allows us to offer a variety of new opportunities to the ITEX Marketplace. Our strong operational cash flow will allow us to continue investing in our technology, to initiate new revenue-generating projects and to pursue strategic alternatives,” White concluded

Fiscal Year 2008 Highlights

¨      Marketplace revenue increased 13% in 2008 to $15,964,000 from $14,171,000 in 2007.

¨      Net cash provided by operating activities increased 15% in 2008 to $2,374,000 from $2,057,000 in 2007.

¨      Stockholders’ equity increased 8% in 2008 to $13,319,000 from $12,330,000 in 2007.

¨      Total assets increased 13% in 2008 to $16,149,000 from $14,304,000 in 2007.

¨      Fourth quarter revenue increased 18% to $4,065,000 compared $3,451,000 last year; fourth quarter income from operations increased 31% to $339,000 from $259,000 in 2007.

¨      Acquired assets of two commercial trade exchange networks, expanding presence in six U.S. regions. 

¨      202,384 common shares repurchased and canceled.

¨      Invested $112,000 in computer hardware and software and added two full time equivalents to the Information Technology team.

¨      Created a national sales manager plus a business development position to execute partnerships with national firms.

¨      Acquired a 15% equity position in MyTypes, Inc., a Seattle-based technology firm.

Subsequent Events

¨      On August 1, 2008, acquired the media trading system, client base, and advertising credit assets of The Intagio Group of San Francisco, California.

¨      Expanded national partnership team with addition of Steve Savad, co-founder of Restaurant.com.

For more information Form 10-K can be found at www.sec.gov or the investor relations portion of their web site at www.itex.com.