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01/29/2008

ITEX Corporation Acquires Certain Assets Of Cleveland-Based ATX

ITEX Corporation (OTCBB:ITEX) has entered into an agreement to acquire certain assets of 26 year industry leader, ATX of Cleveland, Ohio. The all cash transaction will close Friday, February 1, with the 400 member client list and assets transferred to the ITEX office in Solon...20 miles from Cleveland.

ATX was founded in 1982 by Tom McDowell, who is also the founder, three term President and the Executive Director of the National Association of Trade Exchanges (NATE). This acquisition establishes ITEX as the dominate trading community in the Cleveland area market, with more than 700 local members, able to trade with 24,000 other ITEX business members  throughout the United States and Canada.

�This transaction hits the sweet spot for us, as there is minimal integration and overhead to deal with,� said ITEX Chairman and CEO Steven White. �With this acquisition, we will add one local customer service representative to our existing staff of three, to manage the increased member base. Being able to operate a local exchange of this size without adding additional overhead will be immediately accretive to revenue and cash flow.�

Tom McDowell, President of ATX (The Barter Company) explained, �Selling something you�ve built for 26 years is never easy. However, knowing Steve and the kind of person he is, the way he takes care of his people and his customers, has really helped to make this decision easier for me.

�I really got to know Steve about ten years ago when he was president of NATE; today the barter industry is better and stronger because of him. I know that my clients, who have taken care of me for the last 26 years, will be well taken care of by Steve and his staff.�

Terms of the transaction:

         All cash, payable in full on February 1, 2008. Financial details not disclosed.

         Accounts receivable.

         ITEX will utilize existing cash to fund the purchase.

The acquired assets include the following:

         400+ member accounts.

         Contracts between ATX, The Barter Company, and specified clients including the client relationships.

         Historical transactional data and associated accounts.

         The www.atx-barter.com web site.

For more information go to www.itex.com.


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