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ITEX Reports 38% Increase In New Member Registrations & Cash Flow Operations
Up 21%

ITEX Corporation (OTCBB:ITEX), a leading marketplace for cashless business transactions in North America, has filed its Form 10-K with the Securities and Exchange Commission and announced its results for the fourth quarter and fiscal year ended July 31, 2009.

�Despite the challenging economic climate, in fiscal year 2009 we recorded increases in revenues, total assets, stockholder equity, more than doubled our cash position and retired all long term debt,� said Steven White, Chairman and CEO. �Revenues increased 3% and net cash provided by operating activities increased 21% in 2009 to $2,875,000.

�We had a strong fourth quarter with revenue increasing 5% to $4,257,000 from $4,065,000 in the same period last year ,and operational income increasing 26% to $426,000 from $339,000. We attribute these increases to our strategic initiatives, executed in the past two fiscal years, providing earlier than anticipated returns.

�During fiscal 2009, we continued to allocate resources for a number of strategic initiatives such as developing our Web Services program, executing a national strategic partnership strategy, launching ITEX Media Services, and beginning a national advertisement campaign in premier business publications. Many of the expenses incurred were for start up and one-time costs. Our strong operational cash flow and cash position will allow us to continue investing in strategic initiatives.

�We are very pleased with our Software as a Service initiative which resulted in two executed web services agreements � providing new revenue streams for the company in addition to expanding trading opportunities for our members. Under the agreements, for a one-time platform subscription fee and a monthly transaction processing fee ITEX hosts the web interface, client-relationship management platform and is responsible for transactional processing. We also provide a proprietary processing technology that enables members of any of our web services clients to seamlessly accept the digital currency of another web services client.�

White concluded, �Another notable highlight for 2009 was a 38% increase in new member registrations compared to 2008. With the current economic uncertainty, we are well positioned to assist existing and prospective members in generating new sales and conserving precious cash. We have received considerable press in recent months and expect new member registrations to remain strong in 2010.�

Fiscal Year 2009 Highlights

         Marketplace revenue increased 3% in 2009 to $16,502,000, from $15,964,000 in 2008;

         Cash and cash equivalents increased 141% in 2009 to $2,557,000, from $1,061,000 in 2008;

         Stockholders� equity increased 5% in 2009 to $13,981,000, from $13,319,000 in 2008;

         Total assets increased 3% in 2009 to $16,661,000, from $16,149,000 in 2008;

         Acquisition and launch of ITEX Media Services;

         National partnership strategy launched with execution of an agreement with iCare, a division of SYSCO, Inc., a supplier of products and services to the food service and hospitality industries;

         Executed two web services agreements;

         Registered 4,503 new members in 2009, versus 3,248 in the prior year period, a 38% increase;

         Retired early the remaining balances of notes for two acquisitions, leaving the company with no long-term debt;

         Entered into an agreement with U.S. Bank to increase the maximum loan amount under our revolving credit facility from $1.0 million to $1.5 million with a lower interest rate;

         Fourth quarter revenue increased 5% to $4,257,000 compared to $4,065,000 last year;

         Fourth quarter income from operations increased 26% to $426,000, from $339,000 in 2008.

For more information on ITEX�s Form 10-K click here.

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