ITEX Announces Results for Third Quarter of Fiscal 2010

BELLEVUE, Wash., June 9 /PRNewswire-FirstCall/ -- ITEX Corporation (OTC Bulletin Board: ITEX), The Membership Trading Community(SM), a leading marketplace for cashless business transactions in North America, today filed its Form 10-Q with the Securities and Exchange Commission and announced results for its fiscal 2010 third quarter ended April 30, 2010.  The financial statements for all periods presented in this press release have been adjusted to reflect the 1:5 reverse stock split effective May 3, 2010.

"We executed quite well in the third quarter and I'm pleased to recognize gains in revenue and income from operations compared to last year's third quarter," said Steven White, Chairman and CEO.  "Revenue growth was primarily due to our media and web services initiatives, which also provided the benefit of additional transaction opportunities for our members.  Income from operations increased as a result of revenue growth and a reduction in depreciation and amortization expense.  Our increased cash position reflected our operational income."

Mr. White continued, "Revenue from our core business remains steady and our cash flow strong. With our stable financial footing, we will continue to focus our efforts on organic growth, enhancing our internet and web services platforms and creating more stockholder value.  We are pleased to distribute our first ever quarterly dividend on June 30, 2010, to stockholders of record as of close of business on June 15, 2010."

Third Quarter 2010 Highlights

• Income from operations increased to $421,000 from $344,000 in the same period last year;
• Revenue increased to $4,158,000 from $3,981,000 in the same period last year;
• Net income increased to $269,000 from $224,000 in the same period last year;
• Earnings per share increased to $0.08 from $0.06 in the same period last year;
• Cash at end of period increased to $4,193,000 from $2,557,000 on July 31, 2009;
• Stockholder equity increased to $14,722,000 from $13,981,000 on July 31, 2009;
• Broker incentive expense of $50,000 was recorded in the quarter for a computer upgrade initiative planned in conjunction with the upcoming launch of Office 2010.  $79,000 was expensed for the same incentive in the second quarter of 2010, with a total expense of $129,000 in the nine-months ended 2010;
• Repurchased and retired 4,667 common shares.

Subsequent Events

• Effective as of May 3, 2010 ("Effective Date"), the Company amended its Articles of Incorporation to effect a one for five reverse stock split of its common stock   Every five shares of ITEX's common stock issued and outstanding immediately prior to the Effective Date were automatically combined into one issued and outstanding share. Stockholders who were entitled to fractional shares received a cash payment in lieu of receiving fractional shares.  The number of shares of ITEX's common stock issued and outstanding was reduced from 18,027,914 shares to approximately 3,605,307 shares.
• On May 11, 2010, the Board of Directors declared a cash dividend in the amount of $0.025 per share, payable on June 30, 2010 to stockholders of record as of the close of business on June 15, 2010.

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

About ITEX

ITEX, The Membership Trading Community(SM), is a thriving network of participating member businesses.  Members increase sales through an exclusive distribution channel managed by franchisees, licensees and corporate-owned locations, by utilizing ITEX dollars to exchange goods and services.  ITEX is powered by ITEX Payment Systems, the leading payment technology platform for processing cashless business transactions.  ITEX is headquartered in Bellevue, WA.  For more information, please visit ITEX's website at www.itex.com.  We routinely post important information on the investor relations portion of our website.

This press release contains forward-looking statements that involve risks and uncertainties concerning our expected performance (as described without limitation in the quotations from current management in this release) and comments within the safe harbor provisions established under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of our future performance. We believe that these potential risks and uncertainties include, without limitation:  the continuing development of successful marketing strategies for our concepts; our ability to increase revenues and sustain profitability; the availability of adequate working capital; our dependence both on key personnel and our franchise network; and the effect of changes in the overall economy and in technology. Statements in this release should be evaluated in light of these factors.  These risk factors and other important factors that could affect our business and financial results are discussed in our periodic reports and filings with the Securities and Exchange Commission, including our Forms 10-K and Forms 10-Q, which are available at www.sec.gov. All information set forth in this release is as of June 9, 2010, and ITEX undertakes no duty to update this information.

For more information, please visit www.itex.com

SOURCE ITEX Corporation

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