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This section provides an in-depth look at all the Trade Exchange News of 2005.
(Trade Exchanges are also known as Barter Companies.)

International Monetary Systems Upgraded To "Strong Buy"

Investrend Research analyst Gary Vassalotti has upgraded the IMS stock (OTCBB:INLM) to a "Strong Buy/5." The full report, including important disclosures and disclaimers, is available at

IMS is enrolled in Investrend's pioneering professional research program, which facilitates independent analysts to provide coverage for shareholders in companies that otherwise would have little or no analyst following.

International Monetary Systems, President Don Mardak is pleased with the latest rating. "We believe that Investrend's projections are well in line with our own. Furthermore, as a result of our recent presentations at the EdgeWater and Arch Investment Conferences, along with our continuous flow of good news, our stock's trading volume has been steadily increasing." Also High On IMS

On December 7, Chris Lahiji, President of Small Cap Research at, selected INLM as his �Stock Pick of the Week,� placing a $0.55 twelve-month price target on the International Monetary Systems� stock. He� a regular guest on Fox Business Television and the founder of

Lahiji�s investing talents were written about in a Business Week Magazine feature article in 2003. is an Internet based financial web site that provides self-directed investor information on selected public companies that in the opinion of have great investment potential.

For more information visit:

Barter Industry Should Embrace Open Cyber Trading Systems

From Peter Tucker, President CTEX Group

The writing is on the wall, regarding threats to the commercial barter industry from cash or new cash-equivalent online systems. Because, essentially these live 24/7 online systems are producing technology that empowers the buyer to clinch �deals� ( that might otherwise be a market open to a barter pitch. 

These systems can monitor specific products by location, price, you name it...and then notify the buyer so that a transaction can be completed at the very last minute. Thus it enables the seller to practice a form of yield management. 

This is particularly true with intangible services such as hotel accommodations, which is the focus of our group. Online technology allows rooms to be sold as commodities, prices rising and falling with market demand. Try getting a room in New York City next week on barter. It�s almost impossible to find for cash, in fact Intercontinental Hotels do not have a single room available mid-week.

The technology itself enables the sharing of small transaction fees between aggregators (,,, etc.) and travel companies, and is offset by enormous volume when there are open markets.

This technology allows for �accessible/available� products and services to be available in database after database, but on a live, first come, first served basis.

For example, a company might have 100 SKU�s of product available, however the ubiquitous nature of the online technology has these products omnipresent on 200 different sites simultaneously!

Seemingly 20,000 units are available in cyberspace at a particular instant. That�s a mind-boggling 2000% factor, that�s leverage. In the blink of an eye these rooms can be sold before the hesitant buyer hits enter!

If the commercial barter industry embraced open cyber trading systems and volume based fee sharing, similar leverage factors of 2000% and greater could be achieved. That�s velocity.

(Editor�s note: The CTEX Group has been working within the barter industry since 1992, providing various services to hoteliers.)

More Feedback On �Technology�s Effect On Future Of Barter Industry� Article

First, from IRTA�s Executive Director Krista Vardabash:

For sure, technology is making possible many things. As the book, The World Is Flat by Thomas L. Friedman (Farrar, Straus & Giroux), suggests, there are many incredible changes taking place worldwide.

For the barter industry, the world is flat and quickly getting flatter! And it�s a double-edged sword. With increased collaboration power and affordable robust technology converging, some remarkable possibilities are on the horizon...but so are the incidences of rogue operations. It�s the nature of the beast.

In many fields, rogue operators are non-starters, or are eliminated before much harm is done. For instance, matching software is harmless�yet powerful, absolutely. But the worst thing that can happen is a bad swap.

Reputable systems will make quick work of getting the bad swapper out. However, in the field of credit-clearing, rogue operators typically are discovered after big damage is done.

The commercial barter industry faced this 26 years ago and gained their niche only after a long fought, expensive lobbying effort.

I�m excited and also concerned that the cashless trading industry, which commercial barter has pioneered in such a significant way, may be on the verge of a quantum leap...but also may be destined to repeat history at the same time. An investigation, such as occurred decades ago when we were much younger and less developed, could irreparably set our collective vision back.

For those of you who were around back then, imagine what it would have been like if the International Reciprocal Trade Association (IRTA) had not been formed and the IRS was successful thus in their �John Doe endeavor� to extinguish the use of commercial barter through the trade exchange model.

My concern today stems from the proliferation of barter software (for exchange networks) being marketed to commercial and non-commercial exchange networks. There is an incredible naivet� about the responsibilities involved in maintaining a solid exchange network and how to identify a system that is aiming only to expand the distribution of its own trade credit.

The technology part is easy.

Making sure that operators are honorable, ethical, knowledgeable and responsible to the public is another matter. In my position as Executive Director of IRTA, I have been exposed to many agendas.

It seems like many people or groups still have an agenda driven by the desire to be the first, the biggest, the short, to claim responsibility (take the credit) for the quantum leap anticipated. This makes no sense to me. Not only is it selfish, it�s silly. Didn�t we all chuckle when Al Gore reportedly claimed to have discovered the Internet?

Sure, there is talk about being collaborative and working together, yet I still see a lot of guarded secrets, hidden agendas and blue-sky thinking, but not enough doing or doing it together.

I feel IRTA�s job at this time is to continually upgrade membership requirements (quality and management standards), educate the public, and work to steward the collaboration needed to nurture an expansive, responsible and UNIFIED cashless trading world. No small feat.

Regarding last week�s comments by Thomas Greco about Matchbin (formally known as Barter Farm) I am unaware of their agreement with eBay and I�m uncertain that I understand what Greco means about eBay lacking localization.

Perhaps he means in conjunction with Matchbin, eBay can potentially replace all the local �swap sheets� that circulate in communities all over the world. Super...then add a non-cash trade credit...a UC perhaps...and now we�re cooking.

Regarding the founders of Matchbin, Jon Firmage and Josh Higgenbothem, I liked their enthusiasm and direction when I met them at the IRTA Conference in 2003. They don�t issue a trade credit, but their web site is looking great and the matching capabilities are cool...and their focus on local, but global is right on. Other entrants similar to Matchbin are equally impressive, e.g. and

I still strive for the Visa vision for the cashless trading world. And I truly believe that this quantum leap will come from within what we know of as the commercial barter industry. I hope it will start to emerge soon, and be led by gracious, ethical, benevolent leaders who will see beyond their own �fiefdom� aspirations or personal glory pursuits.

I wish to thank Tom Greco for sharing his thoughts and insights. This kind of communication is precisely what our industry needs more of.

Krista Vardabash

Dear Bob,

Your article, �Technology, Cash Discounts May Become Barter Industry�s Major Challenges,� in last week's Tuesday Report inspired me to write the following.


Thomas H. Greco, Jr.

(Editor�s note: Mr. Greco has, for more than 25 years, been working at the leading edge of economic and financial restructuring. He is the author of Money: Understanding and Creating Alternatives to Legal Tender. Chelsea Green Publishing Company, 2001.)

Technology�s Effect On Future Of Barter Industry

The Tuesday Report of November 22 warned that technology is becoming �another growing competitor� of the barter industry. This is a warning that must be taken seriously. Fortunately, technology is available to all (to be used) and the barter industry is better positioned than anyone to take advantage of the new technologies. How is that so?

The key lies in understanding that the financial advantages that can be offered to trade exchange members are ultimately far more valuable than the marketing advantages that (the barter industry has) heretofore been emphasizing.

Your article noted that �today's typical exchange has a preponderance of service businesses as members.� The geographical limitations upon the delivery of services has up to now enabled trade exchanges, with their focus on local markets, to ignore the development of online markets, but that is about to change.

Citing technological and market developments such as Craigslist, eBay, and Google Base, with their new focus on local markets and the service sector, the article argues that �a major shift is underway in how consumers and small business owners shop for local services.� The truth of that observation is undeniable, and in fact, understates the case, which is further supported by considering such other market entrants as Matchbin.

One essential feature of Matchbin is its attention to local markets that are managed online and networked together. The Matchbin motto is, �locally focused while globally connected.� Another distinguishing feature of Matchbin is its strategy of building customer base by soliciting groups that are already connected. Its �Buddybin� feature enables participants to create networking connections similar to Linkedin or Friendster. Matchbin describes itself as �a dating service for your stuff.�

Their recent partnering agreement with eBay gives Matchbin a reach into eBay's huge established market, plus the credibility that goes with associating with a major recognized brand. In return, Matchbin promises to provide eBay with the localization that it has lacked up to now.

Clearly the future of marketing is online, and any trade exchange that does not soon extend its own marketplace into cyberspace will be left in the dust. But the most important point is this. Not only is technology changing �the way consumers and small business owners shop for local services,� it's changing the way they PAY for both services and products, not just locally, but globally.

We've already seen the emergence of payment options like PayPal, but that is just a minor shift compared to what's coming.

What's coming is the use of trade credits that will be internally cleared within the exchange network itself. Credit clearing within their own realms is what barter companies have each been doing from the beginning, so they are well positioned to take cashless trading to the next level.

The Universal Currency utility that has been established by IRTA (International Reciprocal Trade Association) is a step in that direction in that it provides a means by which exchanges can trade with one another. The ultimate step, however, is to provide a means by which a member of one exchange can trade directly with a member of another exchange. What will it take to accomplish that?

The basic requirements are for each exchange to establish an open line of credit for each of its members. Those credit lines will be adequately secured and insured. Further, it is necessary for participating exchanges to expand their membership to include all levels of the supply chain from retailers to wholesalers to manufacturers to basic commodity producers to consumers and workers, so that every member is able to pay their suppliers with trade credit.

Finally, each participating exchange must agree to adhere to an appropriate set of standard procedures and protocols relating to the allocation of credit lines and the management of internal operations. A small fee collected on each transaction will provide huge profits for those that can efficiently clear account balances and quickly ramp up the scale of their operations.

Editor�s note: A set of standards (standard procedures & protocols) as alluded to by Greco has been a topic of discussion at the last two International Reciprocal Trade Association conventions.

Technology, Cash Discounts May Become Barter Industry�s Major Challenges

In the Editor�s Note of BarterNews issue #64, dynamic changes were alluded to within the business marketplace during the last 20 years that have caused vastly different clientele for the trade exchanges. The landscape has continued shifting, and today�s typical exchange has a preponderance of service businesses as members.

Now, in addition to changes such as consolidations and franchising booms, the barter industry must be aware of another growing Coupled with cash, the historically major rival of barter, it portends additional challenges for the industry.

The insidious effects of technology can be observed in the efforts of Craigslist (a classified-ads site) which focuses on metropolitan areas, eBay�s push into the battle for local listings, and the ubiquitous Google with its new service, Google Base.

What does that mean? A major shift is underway in how consumers and small business owners shop for local services. The age of online discounts and coupons is here...along with an added ingredient.

Everyone will be able to see multiple offers at a glance and get a better sense of the best-available overall prices. Therefore providers will be forced to compete more aggressively. This will greatly effect pricing and competition among local businesses, even within the local trade exchange. All will be competing against the money-saving web opportunities that include rebates and print-your-own coupons.

As the small business owner astutely compares the competitive cash pricing in the marketplace against the exchange�s full retail (sometimes inflated) pricing, not to mention commissions paid to the exchange, the difference could be startling. So the barter industry must take note.

As Peter Drucker often said, �Nothing is predictable except that today�s profitable business will become tomorrow�s white elephant.� The business model followed today by those in the barter industry is the same as it was back in the early nineteen-sixties. Much has changed in the marketplace since the industry up to the task?

IRTA Moving Into 2006 With Central Theme. . .
Uniting People & Standards In A Cashless Trading World

The IRTA Europe Chapter has announced a spring meeting to be held at the Hotel Haarlem Zuid in Amsterdam, The Netherlands, March 24-26.

The schedule includes a meeting of European exchanges, a keynote speaker, certified trade broker (CTB) training and testing, and roundtable discussions regarding the title of the conference -- �Uniting people and standards.�

All exchange systems from around the world are welcome to attend. More information will be forthcoming on the IRTA web site at, and interested parties can e-mail

Logie Expounds On Universal Currency Merits

Richard Logie, Universal Currency Chairperson, sent committee members a lengthy report prior to the coming holiday season. Herein are highlights of his comments:

The UC Committee has fulfilled its commitment for 2005 by focusing their efforts in three areas:

  1. Maintaining the highest fiduciary responsibility to the UC membership.

  2. Making the system transparent by publishing member balances.

  3. Making UC the most internationally accepted trade currency available.

The UC Committee is composed of six members:

Perry Constantinides of Barter Systems,
Lois Dale of Barter Advantage,
Jay Greenlees of Advantis International,
Richard Logie of The Business Exchange (Scotland),
Sirri Simsek of Turk Barter, and
David Wallach of SF Outdoor TV.

The committee met by phone every week early in the year, and then continued every other week later on. The members regularly discussed the status of credit requests and accounts, and reviewed all member balances and credit lines in the system from July through September of 2005.

A new matrix was developed that is determined heavily on the members� rolling 12 month selling history in UC. Said matrix was approved by the committee in August and has been applied to all new and existing members.

The World Travel Exchange has become an integral part of international travel for Universal Currency members. The most comprehensive travel site developed especially for travel on trade is becoming increasingly popular. For more information and registration see

BizXchange Named 16th Fastest-Growing Private Company In Washington State

The Puget Sound Business Journal has named a trade exchange -  BizXchange - as one of Washington State�s 100 Fastest Growing Private Companies. Actually, BizXchange was listed 16th on the list, quite an accomplishment for the company which was founded in February 2002 by Bob Bagga, President, Chris Haddawy, Sr. VP of Business Development, and Raj Kapoor, VP of Finance.

Over a three year period the company increased its revenues 375% and grew to 19 employees. Haddawy says the company�s success revolves around a common theme, �Every person who works for BizX is united under the same purpose, working towards the same vision and operating with the same mission and core values.�

BizXchange, an IRTA Certified Trade Exchange, is located in Seattle and the San Francisco Bay area. The company boasts a number of big name companies as members including Southwest Airlines, Viacom Outdoor, Clear Channel Radio, 24-Hour Fitness, as well as the Seattle Seahawks and Golden State Warriors.

Bagga was quick to add, �We are only successful when we help our members improve and grow their business.� Kapoor, wearing his finance hat, says being honored as one of the fastest growing companies �validates our business model.� To learn more about BizXchange visit

ITEX Continues Move Forward Increasing Membership Base 60% And Tripling Assets

Results for the fiscal year which ended July 31, 2005, for the ITEX organization have been announced. Steven White, Chairman and CEO, pointed out, �We ended the final month of our fiscal year by completing the acquisition of BXI Exchange. It was the second largest exchange in North America (behind ITEX) and was a significant milestone for our company.�

The company has now completed eight consecutive quarters of operational profitability. White noted, �No other company in the industry has the scope of presence throughout the United States and Canada, or a nationwide franchise model. Our cash revenues are more than triple our nearest competitor.�

ITEX fiscal year 2005 highlights:

  • Completed the acquisition of BXI Exchange, Inc.

  • Revenue was $10,453,000 vs. $10,283,000 for fiscal 2004.

  • Income from operations was $729,000 or 4-cents a share, compared to $1,031,000 or 5-cents a share for fiscal 2004.

  • Total net income was $3,098,000 or 17-cents a share, compared tO $2,653,000 or 15-cents a share for 2004.

  • Assets increased to $9,125,000, compared to $2,923,000 for fiscal year 2004.

Business members participating in the ITEX marketplace increased to more than 22,000 from 13,400 the prior year.

International Monetary Systems� Exceptional Growth Continues

International Monetary Systems (OTCBB:INLM) announced the processing of $4.7 million in sales for the month of September, 2005. Revenue produced was $563,000, which represented an increase of 45% over the same period the year prior.

IMS President and CEO Don Mardak reported, �This is the fifth consecutive month in which our company has shown explosive revenue growth over comparable periods in 2004. During that time we have had increases of 53% in May, 48% in June, 37% in July, 54% in August, and now 45% in September. Once again, this validates our industry roll-up strategy and demonstrates our success in enrolling new members into (Continental Trade Exchange) our cashless trade network.�

Bartercard International To Re-acquire Majority Interest In Bartercard USA

On September 9, 2005, Bartercard International announced that they will re-acquire a majority interest in Bartercard USA (BCUSA) for an aggregate cost of $875,000.

A newly formed subsidiary company, Bartercard America Inc. (BCA), will acquire the assets of BCUSA for a 20% stake in BCA, make a payment of $275,000 toward BCUSA�s liabilities, and provide first right of refusal on five domestic U.S. franchises to the current BCUSA owners.

As part of the transaction, Bartercard International is facilitating the sale of BCA to a U.S. listed public shell. BCA will be valued at $3 million on the reverse merger and intends to raise up to $2 million, without recourse to Bartercard International.

Wayne Sharpe Out As Chairman Of Bartercard International, World�s Largest (70,000 Members) Trade Exchange

At Bartercard International�s Annual Shareholder�s Meeting on October 19, all of the resolutions proposed were duly passed by shareholders with the exception of resolution 4(b) in respect to the re-appointment of Wayne Sharpe as chairman of the company.

Accordingly, Sharpe has resigned as chairman and is no longer a director of the company. Christian Williams and Edward Adams, non-executive directors, have been respectively appointed Chairman and Deputy Chairman on an interim basis.

Editor�s note: As of October 3, 2005, Sharpe�s beneficial interest of 124,605,878 ordinary shares of Bartercard International represented 54.06% of the company�s issued share capital. Market cap for the firm was $45 million as of August 31, 2005.

IRTA�s 26th Convention Takes On Expansiveness

The first 25 years of the International Reciprocal Trade Association�s existence saw an internal focus. This year, the commercial barter industry removed the blinders with an expanded look at the growing world of cashless trading, at IRTA�s 26 Annual Convention held September 22-25 at the Wyndham Palace Resort & Spa in Disney World.

Most of the attendees felt it was one of the most informative and worthwhile conventions ever held, as some new exciting possibilities emerged. Will it be the exhilarating first step that could prove to change the growth and direction of the commercial barter business?

The possibilities would include...

  • integrating other complimentary currencies (from community currencies to frequent flyer miles, and others) to enlarge the cashless trading world;

  • insurance of a member�s line-of-credit trade as a normal way of doing business; and

  • the introduction and incorporation of a new program where trade exchange members can drive additional cash business to their establishments through a new rewards program.

The convention got off to an auspicious start with a mesmerizing keynote by a powerful advocate of alternative monetary systems, Bernard Lietaer (pronounced Lee-ah-tar).

Lietaer, author of The Future of Money: Creating New Wealth, Work and a Wiser World, is a recognized expert on monetary systems. While at the Central Bank in Belgium he co-designed and implemented the convergence mechanism (ECU) to the single European currency system. He also was the co-founder of one of the largest and most successful currency funds, becoming its General Manager and Currency Trader.

Lietaer�s message to the attendees was energizing and factual. He provided a 5-year outlook for today�s current financial situation, though many in the audience were stunned by precise information and suggestions of currency upheavals ahead.

Yet it was obvious that Lietaer feels barter, especially if the industry can undergo considerable growth, could provide a substantially stabilizing role for what�s expected to be a growing unemployment situation worldwide. According to the monetary expert, businesses, individuals and entire communities, would be better off when barter becomes an integral component with growing usage.

Lietaer�s message was especially relevant because the commercial barter industry has never fully comprehended or understood (or even cared about in many cases) what community currencies represented. Although his message to the attendees asserted that the future of money will be complementary currencies, he also was quick to point out that this did not mean that the existing national currencies would be compromised.

We in the barter business, with our trade dollars, are in the complementary currency business. But so are others, like the 14 trillion frequent-flyer miles in the marketplace, which at 2-cents a mile translates into a $280 billion currency, and a myriad of other reward programs from hoteliers to major retailers. Additionally, Lietaer reported, there are now over 5,000 social-purpose currencies in existence worldwide.

In short, complementary currencies are a fact. Providing an apt analogy, Lietaer suggested, �We�ve proven it can fly, but we�re now like the Wright Brothers were years ago...just at the beginning of something that�s going to be dramatic! And,� he continued, �we�re all (the people in this room) putting the blocks in place to build a beautiful Cathedral.�

What�s ahead for the commercial barter industry? He contends that it�s really up to a handful of visionaries who are willing to move forward a step at a time, conveying that those within the industry must realize that the first important step is selective standardization for internet barter transactions. He emphasized that this must be done by the industry to get to a higher level, pointing out that the banking industry only became �important� because of standardization.

(Later on during one of the sessions, specific steps were provided by Lietaer to show how the industry could follow in the footsteps of, and run parallel to, the incredible success of the Visa system, i.e. independent banks working cooperatively for the greater benefit of all.)

Propitiously, the convention included a 2-hour educational session by standards expert Greg Swann, of the Bureau Veritas Quality International, to further educate the industry on the subject of international standardization.

His message was straight forward. Standards include: say what you do, do what you say, and prove it�with written records and results. The barter industry can, Swann said, immediately implement steps that would require little money, but would raise the level of performance within the industry.

Will the industry take action on standardization? Historically, after a well-meaning convention is concluded, attendees �go back to business� and little action on what was talked about actually occurs.

IRTA Awards Banquet Honors

Special Recognition was given to Universal Currency Broker Jennifer Ashworth and IRTA�s Executive Director Krista Vardabash. 

The Paul St. Martin Distinguished Service Award, for selfless contributions of time and effort to the industry, went to Richard Logie for his accomplishment in providing a software system for the Universal Currency and for his representation of IRTA in Europe. 

The Outstanding Achievement Award honors individuals within the barter industry who have demonstrated achievement in management techniques, education, client services and marketing/sales. This year several deserving individuals were honored:

Scott Whitmer of Florida Barter; Bob Bagga, Raj Kapoor & Chris Haddawy of BizXchange; Sirri Simsek of Turk Barter; Don Mardak of Continental Trade Exchange; and Lois Dale of New York Commerce Exchange.

The inductee into the IRTA Barter Hall of Fame was Andrew Federowsky. He, along with Wayne Sharpe and Brian Hall, founded Bartercard in February 1991.

In last week�s report we covered his extensive achievements. Not mentioned, however were Federowsky�s efforts and input in developing Bartercard�s online transactional web site (including auction, e-marketplace, and shopping mall) which recently saw the $100,000,000th online dollar traded.

Federowsky has sold $10 million in licensees and trained hundreds of people in multiple countries. Global membership doubled under his leadership to over 75,000 with a trading volume of $2 billion annually.

The IRTA convention�s major Platinum Sponsor was Turk Barter. Active International and Florida Barter were major sponsors, and three trade exchanges were sponsored individual events: Barter Consultants, BixXchange and New York Commerce Exchange.

Other Industry News:

Bentley Commerce Selects ITEX�s Processing Services

ITEX Corporation has been selected by Bentley Commerce to provide processing services to the exchanges with which Bentley has contracts. The new processor will replace the VirtualBarter system the firm had been licensing.

International Monetary Systems CEO Presenting At Edgewater Research Conference

Don Mardak, CEO of International Monetary Systems (OTCBB:INLM), will present a corporate overview of the company�s growth strategy at the Edgewater Research Conference, scheduled for October 7-8 in Lake Tahoe (NV). Mardak noted, �This conference is known as one of the best venues to increase investor awareness. We believe our stock is undervalued given our increasing revenue, profit growth, and strong market position. This is the first step in getting our stock to a proper valuation.�


TeleTrade International Continues Rapid Growth

Gary Lasater, CEO of TeleTrade, reports that TTI has seen a substantial increase in its transactional processing services for the barter industry. Total combined transactional volume reported was $60,000,017 for the first eight months of 2005.

The greatest growth came at which showed a 66.7% increase over 2004 with combined transaction volume of nearly $39 million.

Teletrade International is the creator of the technology, which offers four ways for authorization approval. For further information contact Gary at (303) 840-7172, ext.1.

Former Barter Pro, Sondra Ames, Now Wonderland Bakery CEO

As founding members of the International Reciprocal Trade Association (IRTA) and the National Association of Trade Exchanges (NATE), Sondra Ames and her husband Mike Ames were driving forces in the formative years of the commercial barter industry.

Today she�s wearing another hat, that of CEO and co-owner of Wonderland Bakery along with daughter Allyson Ames. It�s a talented mother-and-daughter team, with the artistic inspiration and culinary expertise provided by president and co-founder Allyson. 

Allyson is a graduate of the Culinary Art Institute of America and has been honored with numerous awards and recognitions for her culinary talents. Allyson has been featured on CNN and has catered the Emmys, Grammys and other award shows.

Sondra Ames has a strong business background and extensive ties with charitable, civic and professional organizations that Wonderland supports.

Their one-of-a-kind bakery has recently opened at The Bluffs in Newport Beach and offers gourmet cookies, special occasion cookie arrangements, artistic desserts, French pastries, chocolate dipped fruit as well as customized gift packaging. For more information call (949) 640-9095 or go to

Andrew Federowsky Inducted Into IRTA�s Barter Hall Of Fame

A co-founder of Bartercard International, Andrew Federowsky, received well-deserved recognition for his hard work and dedication by being International Reciprocal Trade Association�s 2005 inductee for the Barter Hall of Fame.

Federowsky has traveled around the world, building Bartercard as well as promoting barter itself. His vision and efforts have been responsible for establishing regional service centers in Europe, the Middle East and Asia.

In 2000 he traveled to the Middle East to negotiate with business leaders from various countries within the region. He sold the first Middle East license, and has since assisted in launching operations in that area...some of which were the first exchange in that country. Bartercard has ten offices in five countries in the Middle East.

Federowsky also was responsible for assembling and leading the team that developed Bartercard�s internet technology. He is a Fellow of the Australian Institute of Company Directors (FAICD) and a Member of the Australian Institute of Management.

(Bartercard has 110 offices worldwide, many franchised, and will have a turnover of US$2 billion in 2005.)


IRTA Board Director/Secretary, David Wallach, Shares Thoughts

Wallach was unable to attend the convention due to cancer treatments, but he provided the following message to the convention attendees.

�I regret that health issues have kept me from attending this year�s IRTA convention. Please be assured that my heart and thoughts are with each of you as you plan the future direction of our industry.

�I wish to thank my many friends and colleagues for their support and prayers during this very difficult period of my life.

�Don�t get me wrong, I have not given up and I am extremely reluctant to depart from this wonderful life.

�During my 30-year career in the Alternative Currency Industry it has been my pleasure to serve on several IRTA Boards of Directors. Over the years each Board seems to have risen to exactly the appropriate level and provided well thought out answers to the difficult situations on their agendas.

�The current Board is exceptional, led by Board President Lois Dale and IRTA Executive Director Krista Vardabash. The Board has come a long way in accomplishing its mandated mission of defining, creating, and installing standards of operation and conduct industry wide.

�Tom McDowell, I so wanted to be there, shake your hand and welcome you to your first IRTA meeting in many a year. Under your able direction NATE has certainly positively contributed to shaping and defining the Barter Industry. It has always been my goal to see the two industry Associations work closer together and find a path to unity in direction and purpose.

�In my view we are neither in the Barter or Trade business. We are business ecologists that provide a currency which represents excess business capacities that without our involvement would go totally ignored and absolutely wasted. 

�We do a magical thing: we turn this business waste into a currency of great cash replacement value. As a result we capitalize as well as grow companies and stimulate business activity; thereby creating more employment and a stronger economic environment.

�Applied on grand scale and on a global basis our non-money currency system will fuel an unparalleled economic boom that will significantly raise the world�s standard of living resulting in extensive increases in nutrition, education, and health care for all of the earth�s people.

�It is my belief that those persons in this very room can and will make this vision a reality.

�Good luck and God�s speed.�

David Wallach


IMS Income Up 54% As Company Pushes To 10,000 Client Benchmark

Don Mardak, International Monetary Systems (OTCBB: INLM) President and CEO, continues his push forward with the objective of hitting the 10,000 client number...a powerful benchmark in the commercial barter industry.

The company�s gross income of nearly $5 million worth of trades for August shattered all previous monthly records. It produced revenue of $605,000, which was a 54% increase over the same period in 2004.

IMS has completed the integration of their last five acquisitions into Continental Trade Exchange�s barter network, and now services clients in 32 markets across the United States. Mardak says they have plans on entering additional markets in the coming months. For more information go to the company�s web site at


Fran Crumpton Replaces Debbie Lombardi As NATE President

The National Association of Trade Exchanges� Board of Directors has named Fran Crumpton as its new president. Crumpton will replace outgoing NATE President Debbie Lombardi who resigned because she is no longer involved in the barter industry, and therefore ineligible to serve on the board.

Patti Falus, owner of Barter Network in Toronto, was elected as the new Vice President replacing Crumpton who previously was serving in that position.

Fran Crumpton owns Gulf Coast Trade Exchange in Pensacola (FL), and has served the industry tirelessly in many different capacities over her 21 years in the industry. She will serve as NATE�s president through the Association�s 2007 convention.

In May 2005, Crumpton received NATE�s coveted Monkman-Crumpton Award. This award, which in part honors her late husband Bob (NATE�s third president from 1987-1988), recognizes integrity and loyal support to the Association. For more information on NATE go to


Kaliel Taking Annual Baseball Trip To �The Field of Dreams�

Three weeks ago we introduced you to a unique character, one of the top trade exchange salesmen in the industry, 55-year-old San Diegoan Art Kaliel. He refers to himself as �George Costanza� for obvious physical similarities.

Kaliel publishes a semi-weekly little newsletter titled �The Green Standard,� sharing some quips and thoughts as well as names of various companies that he serves.

This week he was busy sending out post cards from Dyersville (IA), the movie site and home of Universal Studios� 1989 movie Field of Dreams, starring Kevin Costner.

He makes an annual pilgrimage to this part of the country from San Diego every year...then on to Chicago�s Comisky Park, the Skydome in Toronto, down to PNC Park in Pittsburgh and then over to the Big Apple. It�s quite a road trip that extends from August 31 to September 5. Along the way he�s smelling the roses, eating hot-dogs, and spending his trade dollars at every opportunity!

In his newsletter, Kaliel says the top 10 barter �wants� in Southern California are:

  1. Advertising

  2. Restaurant meals

  3. Dentists

  4. Marketing

  5. Catering

  6. Maid services

  7. Clothing

  8. Tools

  9. Printing

  10. Auto repair

If you wish to receive his Green Standard e-mail missives, e-mail him at And remember, as he says, �Any reproductions without written permission are OK by George!�

You also may want to check out his web site:


Barbara Martin Appointed National Sales Manager At IMS

International Monetary Systems (OTCBB:INLM) has appointed Barbara Martin, a long-time respected veteran of the commercial barter industry, to the position of National Sales Manager. Over the years Martin has done a remarkable job of running regional offices for IMS�s Continental Trade Exchange network.

Her elevation to this prestigious and important position shows the growing importance of having a competent on-the-street sales team in addition to inside brokering services. IMS is on track to break the 10,000 client milestone within the next 60 days.

According to CEO Don Mardak, the company has a dozen full-time sales representatives who are bringing in around 100 new clients per month. �We intend to continue expanding our training and recruitment program for new salespeople so that we can eventually sign up 500 to 1,000 new members each month.

�Additionally,� Mardak disclosed, �we believe that we will have the ability to continue our acquisitions and roll-up of the existing barter industry, because of our good reputation and past relationships with trade exchange owners.�

For additional information go to

Bentley Commerce Makes CEO Change, Kamm Terminated

The Bentley Commerce (OTCBB:BLYC) board of directors, pursuant to a resolution by the board dated September 13, 2005, has removed Bruce Kamm as CEO and CFO and from all consulting positions with the company.

Anna Taylor has been appointed as Interim Chief Executive Officer and Interim Chief Financial Officer. The 40-year-old Taylor will also continue her current positions of Chief Operating Officer, Executive Vice President and Secretary. Robert Schumacher continues as president and CIO.

Prior to joining Bentley Commerce Ms. Taylor served as the District Manager for KinderCare Learning Corporation, a major education corporation that operates over 2,000 centers nationwide. For the past five months, she has had the responsibility for the daily operations at Bentley Commerce...auditing and managing accounts, overseeing its programs, and training and developing new associates.


ITEX/BXI Integration Successfully Moving Forward

Steven White, CEO of ITEX Corporation (OTCBB:ITEX), reported that former BXI brokers and members are �rapidly adapting to the new brand and are quickly making significant contributions to our marketplace performance.�

Business metrics for August 2005:

  • Cash deposits of $1,211,000, compared to $801,580 in August 2004.

  • Transaction volume of $16,121,000, compared to $10,543,000 in 8/04.

  • More than 22,000 member businesses, compared to 13,400 in 8/04.

  • 27,437 completed transactions, compared to 15,624 in 8/04.

  • 1,814 new online listings, compared to 1,064 in 8/04.

  • 257 new business registrations, compared to 165 in 8/04.

IMS Network Expands Client Base To 9,500, Expects Increased Revenue Of $350,000

International Monetary Systems (OTCBB:INLM) has completed its acquisition of the assets and client base of United Trade Network (UTN) of Las Vegas. IMS disclosed that the transaction is expected to add nearly 800 new clients and $350,000 in annual revenue to the Continental Trade Exchange national barter network.

IMS President and CEO Don Mardak reports that in addition to the Nevada clients as well as those in Southern California, the firm will retain UTN�s former owner Greg Pavlov. He will be overseeing the company�s sales force in the Southwestern region and spearhead growth initiatives in that region.

One Of The Nation�s Top Trade Exchange Salesmen, Arthur Kaliel, Has Unique Style

For over a decade now, week in and week out, a guy who refers to himself as George Costanza (he�s a ringer for the Seinfeld actor) has been successfully selling the trade exchange concept to the business community in the greater San Diego area.

Kaliel has annually been the top salesman in the BXI national organization (recently acquired by ITEX). In an industry where the turnover of outside salespeople is routine, Kaliel is the exception to the rule. Why? Certainly he has a �can do� attitude, but in addition he has astutely developed several unique sales techniques that set him apart from the crowd.

One of them is his semi-weekly e-mail newsletter, titled the Green Standard, sent out to his growing list of clients and prospects. It�s not only a fun read, but informative as well.

Published tongue in cheek by �George Costanza Productions...any reproduction without written permission is OK by George!� To see what this unusually successful salesman uses as one of the �arrows in his quiver,� e-mail him:


Bartercard�s Sharpe Asserts Online Barter Has Staggering Potential

As the largest �open membership� trade exchange, with some 70,000 members worldwide, Bartercard has pioneered online trading through its extensive worldwide organization for years. CEO Wayne Sharpe contends that �we have only scratched the surface of what is possible!�

This year, the company will complete $40 million in online trade transactions, up from $4.4 million in 2001. Bartercard�s portal is unique in that it not only completes a member�s trade, but also facilitates the transaction of funds. 

The company says their online trading success was made possible through the two tiers of extensive internal product development and the business development team of Gravitymax, a Sydney-based web development firm.

Bartercard enjoyed a ten-fold increase in inquiries from its web sites since Gravitymax reworked Bartercard�s web site structure and design. For more information go to

�We have significant momentum on our side, and will continue to aggressively take market share from our competitors...while increasing the size of the overall marketplace.�

�Steven White, CEO ITEX

The ITEX Corporation (OTCBB:ITEX) announced it has deposited over $1 million in fees for the first time in the company�s history within a one-month period. CEO Steven White exclaimed, �To our knowledge, no company in our industry in the U.S. has ever deposited $1,000,000 generated from transaction and association fees in any month...we did so in the first 19 days of August.�

White revealed that his goal is to shorten the time period (of generating a million) to a weekly and then a per day event!

ITEX statistics for the first 19 days of August, 2005:

  • Cash deposits of $1,009,542

  • Transaction volume of $10,160,000

  • 22,000 member businesses (revised up from 21,000)

  • 17,416 completed transactions

  • 1,242 new online listings

  • 146 new business registrations

ITEX Franchisee John Castoro Acquires BXI New York

CEO Steven White emphasized that franchisees with ITEX can build a substantial business. �John Castoro of New Jersey just completed the purchase of the BXI office in New York and has created an enterprise of 1,000 members, doing $20 million annually in transaction volume which generates almost $1 million in cash revenue a year.� That number, White noted, �creates one of the largest exchanges in the country on an individual basis. Much larger than most of the independent exchanges in the United States.�

White also pointed out that independent licensed broker Michael Muzzin, owner of an existing ITEX office in Toronto since 2000, purchased the Toronto office previously owned by John Castoro. Muzzin�s expanded office with 650 members will generate $500,000 in cash revenue and $8 million in transaction volume yearly.

International Monetary Systems Reports Quarterly Revenue, Net Income Increases

Publicly-traded IMS (OTCBB:INLM), the holding company for the Continental Trade Exchange barter network, reported that its second quarter, ending June 30, saw gross revenue increasing 44% to $1,597,891, compared to $1,110,410 for the second quarter of 2004. Net income was $274,341, representing an 89% jump from the $144,819 generated during the same three months of 2004.

The 2005 second-quarter net income was $113,307, an increase of 180% compared to the $40,512 net income for the same period in 2004.

As of June 30, IMS total assets reached $6,913,341 from $4,870,360 at the end of 2004, with stockholders� equity of $3,942,941 up from $2,976,382.

IMS Acquisition Figures Reported

As reported earlier this year, IMS purchased both Eagle Barter Exchange of Chattanooga and United Trade Network of Reno in April, and Barter Business Unlimited in May.

The purchase price of the Chattanooga office was $365,000, including $65,000 down payment in cash and backed up by 600,000 shares of common stock guaranteed to have a value of at least $300,000 or $0.50 per share. (The membership list was valued at $330,000, which according to IMS is the real value in acquisitions.)

The purchase price of the Reno office�s selected assets was $155,000, backed by the issuance of 110,000 shares of stock with a guaranteed value of $0.50 per share. (The membership list was valued at $130,000.)

IMS purchased Barter Business Unlimited for a discounted price of $1,550,000. Payment was $500,000 cash and 2,050,000 stock shares, with 1,400,000 shares having a guaranteed value of $0.50 per share, plus a promissory note for $350,000. (The membership list in this acquisition was valued at $1,376,500.)

Bartercard Going Public Via Reverse Takeover

Deal Is Barter Industry�s Largest Ever

The directors of Universal Direct have announced that an agreement has been reached, subject to shareholders� approval, to purchase the entire issued share capital of Bartercard International.

The purchase will encompass the issuance of 217 million new Universal Direct ordinary shares, with the price valuing Bartercard at 65 million pounds.

Bartercard is the world�s largest trade exchange and has company-owned operations in the UK and Australia. Licensed agreements in other countries around the world include the USA, Hong Kong, New Zealand, Thailand, as well as throughout the Middle East and Asia. (There are 130 company owned or franchised offices worldwide.)

Since Bartercard�s founding, February 1991 in Australia, the growth in new members has been consistently strong and now numbers in excess of 70,000 businesses/companies.

Sources of revenue from the firm�s subsidiaries are: trading commissions (from buyer and seller on each transaction) 70%, publication and subscription fees (10%), administration fees (15%), and franchise sales (5%).

One of the fastest growing parts of Bartercard�s operation is its e-commerce operation, launched in 2002. Twenty-five thousand items are now displayed on its global site.

Bartercard�s audited earnings for the past three years ending June 30 are as follows:

  • Revenues for 2002 A$42,063,748; 2003 A$45,580,970; and 2004 A$49,105,352.

  • Profits or losses after tax for 2002 (A$3,212,625); 2003 A$852,914; and 2004 A$2,350,916.

(Bartercard International is audited under US GAAP accounting and is required to disclose all financials in the currency where the largest proportion of revenues are earned, which is from the largest Bartercard operation being the wholly owned subsidiary in Australia.)

Commenting on the acquisition, Universal Direct�s Executive Chairman, David Wright said, �Apart from the outstanding growth opportunities at Bartercard, Universal will be a major beneficiary of its expanding e-commerce site. Over the last two years, Universal Direct incurred stock losses, resulting in significant trading losses. Utilizing Bartercard�s web site and global scale should...improve the group�s negotiating position for reverse logistic contracts.�

Bartercard�s CEO and founder Wayne Sharpe stressed, �The opportunity to become publicly listed via a reverse takeover is something we have pursued for the last three years, since I relocated to the UK. However it required a combination of events, including the emergence of the UK and e-commerce as profit centres. We are pleased to be able to add value to the Universal Direct shareholders...and look forward to the company re-listing under the name of Bartercard plc.�

Sharpe shared with BarterNews that the time frame to closure is approximately five weeks. �Then,� he disclosed, �it�s back on track for growing the company to the next level.�

The board of directors of the merged company will consist of a consolidation of the two companies� boards, with David Wright as Chairman and Wayne Sharpe as CEO. (For more information go to

 Bentley Commerce Offers Affiliates NSF Check Recovery Service

Bentley Commerce (OTCBB:BLYC) is offering its affiliated exchanges the CollectAChek ( system to recover 100% of the face value of non sufficient fund consumer checks, up to $2,500. There is no cost of collection to their member businesses for these NSF checks, and participating exchanges receive a share of state-authorized recovery fees.

�This is part of our on-going efforts to offer innovative revenue opportunities to our online affiliate exchanges, which handle transactions for approximately 18,000 businesses, as well as our off-line trade exchange network that works with an estimated 50,000 businesses,� announced Bruce Kamm, Bentley�s CEO.

CollectAChek, a company affiliated with Bentley, recovers bounced checks for a wide range of businesses which include Discount Tire, Meineke Car Care Centers, Goodwill Industries, Subway, Fantastic Sams, Supercuts, Le Gourmet Chef, Kelly-Moore Paints, Boys & Girls Clubs of America, and Jackson Hewitt Tax Services.

Kamm says Bentley Commerce will offer its free check recovery services to all the member businesses using Bentley�s Global Trade Alliance. (For more information go to

Moving Forward...You Gotta Believe

By Ron Whitney, NATE Board Member

Seven years ago I shared a �satellite� office with an attorney friend of mine who got to know the barter business pretty well�he had no choice, he could overhear every conversation I had for over a year!

His take on the barter business was probably accurate, when he said, �Like most businesses, barter has its problems, but it provides an important service to most all types of businesses, so it has value.�

Indeed, as barter company owners or employees we all know what the day to day problems of the business are: limited goods and services, untimely service, impatient or belligerent members, late pays/no pays, TIN issues, etc.

But we also get to see the amazing positive things barter does for so many businesses. And NATE is a valuable vehicle that can help all exchanges experience more of those amazing success stories. So as NATE enters its 21st year, it�s imperative that it looks to its past with a sense of pride, its present with a sense of purpose, and its future with an open mind.

One�s belief in their business is not without risk, or as Charles W. Eliot said, �All business proceeds on beliefs, or judgments of probabilities, and not on certainties.�

We as entrepreneurs in the barter business know this all too well�we deal with risks all the time. NATE too operates in an uncertain environment that presents risks of its own. 

Currently, the barter industry is under the most intense level of IRS scrutiny since 1982 when TEFRA (Tax Equity Fiscal Responsibility Act) was passed.

The recent proliferation of association sponsored currencies raises questions as to what the core purposes of barter associations really are, going forward.

And the issue of whether two associations are in the best interest of the barter industry as a whole, continues to be seriously debated.

These are the compelling issues of the day that will shape the future of the commercial barter industry. There is no question in my mind that NATE can rise to the occasion and be a powerful voice for reason and good judgment so as to assure a bright future for barter.

NATE needs to step up, because in the final analysis barter truly is an industry that has value, it really is an important business tool for businesses, and despite the risks, is well worth believing in.

ITEX Shows Continued Success

ITEX Corporation (OTCBB:ITEX) has announced results for their second fiscal quarter of 2005, ending January 31, 2005.

According to Steven White, Chairman and CEO, �Results for the second quarter reflect our successful efforts to generate positive cash flow and net income of $279,000, even after investing $124,000 in the broker network infrastructure, incentives, and development of our online initiatives.�

Revenue for the quarter was $2,703,000 versus $2,708,000 in the prior year, increasing 5% over the most recent quarter ending October 31, 2005. And net operational income for the quarter was $234,000, versus $227,000 in the prior year.

SG&A (selling, general and administrative costs) for the quarter increased to $669,000 from $542,000 in the prior year. The increase is attributed largely to investments which included $84,000 in costs for Internet application improvements and hardware upgrades, and $40,000 for broker incentives and support. 

Assets increased to $3,609,000 from $2,923,000 at the fiscal year ending July 31, 2004. Liabilities were $520,000 compared to $1,821,000 in the prior year. The company has no long-term debt.

For more information the quarterly report on Form 10-QSB can be found at

Industry News. . .

  • Global TransNet Corp. (OTCBB:GBJX) announced that wholly owned subsidiary LUCRAcard�a trade exchange�permits its members to �cash-out� their excess trade dollars (sales over purchases) at the end of the trading year after $30,000 in business has been transacted within the exchange.

  • Katie Harris, the daughter of Richard Harris, founder of National Commercial Exchange in St. Louis, has established a 501c3 non-profit company. Her goal is to reach children and persuade them to make responsible choices. She does so through assembly presentations involving skits that kids can relate to. 

    Her mission, called �City Conquest,� came about because of the drinking related, fatal car accident her older brother Todd (Richard�s son) had in 1998 when he was 19.

    Katie�s �team� is traveling around the country to schools, churches, temples, even local jails to make a difference. They need help with expenses for postage, video productions, a van to transport the team, web site upkeep, a trailer for props, etc. If you�d like to learn more about �City Conquest,� see a promo tape, or provide donations, call National Commercial Exchange (314) 567-7890 and ask to contact Katie.

  • The worldwide barter marketplace is huge and diverse, with many facets to it. Accordingly, the International Reciprocal Trade Association (IRTA) looks at and acknowledges alternative monetary systems on their newly-upgraded web site. Some excellent material is available, including a section which provides links for little-known information about other alternative monetary systems. For more information go to

  • Don Mardak, CEO of International Monetary Systems, has concluded their first phase of funding, having secured $610,000 from three private investors. The convertible bridge loans have terms of two and three years.

    �We are pleased that this first phase of our funding program is now in place,� Mardak confirmed. �The money will enable us to proceed with negotiations on several potential acquisitions that are now in progress. We are also moving forward on the institutional placement program that we announced several weeks ago, as well as other equity lines that are currently under consideration.� 

  • International Monetary Systems (OTCBB:INLM) has also announced an enhancement to its shareholder communications by maintaining a chat forum on �Creating efficient and effective investor communications has always been a priority for us at IMS,� CEO Don Mardak stressed. 

    �Both our business and investor base have experienced rapid growth over the past several quarters. Using a moderated chat forum to communicate with our investors is a natural progression that will ensure the fast and free flow of information.� 

  • The National Association of Trade Exchanges Board of Directors has developed a new credit policy for all BANC members. The policy has resulted in 19 BANC members getting an aggregate increase in their credit lines of $756,500, and twelve members receiving reduced credit lines totaling $495,000.


Bentley Expands Network

Bentley Commerce Corporation (OTCBB:BLYC) has announced new affiliation agreements with five trade exchanges, expanding the Bentley Affiliate Exchange Alliance into new markets in Texas, Colorado, Massachusetts, Florida and Georgia. Bentley affiliates (using VirtualBarter software and participating in the online global marketplace) now are located in 38 states and 9 foreign countries.

�Based on our initial success of a new marketing campaign, next month we will expand our effort to market our trading technology, trade card and other revenue generating opportunities, to about 200 trade exchanges,� exclaimed Bruce Kamm, Bentley�s CEO.

For more information go to


eValues Announces New Swipe Card Program

Gary Lassiter, CEO of, has revealed a new swipe card program for the trade exchange industry. Lassiter says the swipe card technology handles both cash and trade processing through one terminal.

For more information go to or contact Ted Delong, eValues president, at (303) 840-7172, ext. 2.


Bartercard International Launches Portal For 16 Countries

With a worldwide, organization Bartercard International faces the challenge of providing regional culturization and language needs for 16 distinct and unique countries.

The company undertook to create a singular web site platform that addressed the consumer needs for each of its countries� markets, with regional content management all under a unified global brand.

The results can be viewed at which offers 16 unique web sites. All are culturally and content relevant for the local domain, yet displayed in a similar manner and exhibiting consistent navigational norms.

Deserved Kudos To Twenty-Eight-Year BXI Veteran Jack Denny

In December 1976, Jack Denny and Phil Gill became the first two area franchise directors for BXI. Gill retired several years ago and Denny, one of the real gentlemen in the barter industry and the area director for Oklahoma City, stepped down effective December 1, 2004.

Still physically and mentally active at 72, Denny expects to remain involved and continue to trade...but it will be on his own account now. BarterNews and the barter industry salutes Jack Denny for a job well done, and for his 28 years of effort on behalf of the hundreds of businesses he helped in Oklahoma City!


IMS Annual Report Reveals Revenue Growth

International Monetary Systems processed $37 million in barter transactions (up from $32 million in 2003), according to the company�s Annual Report for the year ending December 31, 2004. Revenue generated was $4,732,960, versus $3,972,386 of a year earlier.

Operating expenses for 2004 increased by $816,982 or 22% over 2003. All the additional operating expenses were a result of the acquisitions made during 2004 along with investor relations� expenses for marketing stock.

Although IMS now has more employees, the personnel needed to operate the acquired offices has been reduced from that under previous management. Therefore, in 2004, Continental Trade Exchange operations had net income before taxes of $519,763. After expenses and taxes net income was $91,012.

Payroll expenses increased 23% from 2003. Occupancy expenses decreased 34% to $284,635. Selling and other expenses increased 52% to $203,011. General and administrative expenses increased 33% to $1,088,529 in 2004.

IMS had net income of $36,246 for the calendar year 2004, compared to a loss of $242,259 for the prior year.

Bentley Signs Exclusive Marketing Agreement With RFN For Spot Advertising Inventory

Bentley Commerce Corporation (OTCBB:BLYC) has signed an exclusive marketing agreement with Radio Forecast Network (RFN), that gives Bentley exclusive rights to market RFN�s radio spot inventory to affiliate exchanges and their members.

As part of the agreement, Bentley ( can also market the radio spots to major companies such as hotel and restaurant chains. Bentley�s CEO Bruce Kamm said, �We anticipate eventually having about $1 million of media inventory available monthly to market to exchanges, their members, and travel and hospitality companies.�

RFN (, through a national partnership with WeatherBug, provides mp3-quality customized weather reports to more than 60 radio stations nationwide, and anticipates increasing its distribution network to over 300 stations by year end.

WeatherBug, the owner of the world�s largest proprietary weather network, has over 8,000 tracking stations and more than 1,000 cameras strategically placed at schools and public safety facilities throughout the nation.

RFN trades its weather reports for spot advertising, thus providing radio stations with a professional full time weather staff without the cash expenditure.

Radio stations interested in custom branded weather reports, paid for with spot advertising inventory, should contact RFN or Bentley Commerce for further details.


eValues Continues Growth, Expansion

TeleTrade International (TTi) reports that the system had a 60% transaction volume increase, year over year. First quarter trade volume was $11.4 versus $7.1 in 2004.

Domains using TTi�s online systems, including and, saw $18.2 million total volume for the first quarter of 2005 versus $13.9 in 2004.

Gary Lasater, CEO of TeleTrade International, says the larger volume can be attributed both to increases in affiliated exchanges and the easier listing accessibility for members.

TTi also announced its swipe card/credit card program is in full swing in the U.S., and that the system will shortly be available to exchanges in Canada. The company has provided technology to the barter industry for 24 years and been online since 1999. For more information go to

IMS Makes 12th Acquisition

International Monetary Systems (OTCBB:INLM), the holding company for Continental Trade Exchange, has signed a definitive agreement to acquire the assets and client base of Eagle Barter Exchange of Chattanooga (TN). Johnny Eagle, the former owner, will be staying on to manage the Chattanooga office and to bring his media experience and marketing expertise to the nationwide barter network.

�The addition of Eagle Barter�s operation strengthens our barter network�s presence in the southern-central area of the U.S.,� affirmed Dale Mardak, Sr. VP for IMS. �Having Johnny Eagle join our staff is a real plus. He is one of the most respected figures in the barter industry, and has a strong background in radio broadcasting which will add a new dimension to our advertising and media departments.�

For more information on IMS go to

IRTA Concludes Successful Meetings In Istanbul

The International Reciprocal Trade Association�s Board of Directors met April 8 in Istanbul, Turkey, at the headquarters of host Turk Barter. The meeting was attended by all nine board members and IRTA�s executive director, Krista Vardabash.

Mr. M. Sirri Simsek, Turk Barter�s president, was interviewed on several Istanbul economic television programs along with Ms. Vardabash. There was also considerable front page coverage by Istanbul�s leading daily newspaper.

Prior to the board meeting, influential European trade exchanges from the UK, Poland, Belgium and Turkey, as well as international members from North America, met for a round-table discussion on what standards are key for the commercial barter industry.

Vardabash explained that the round-table was a furtherance of the mandate by IRTA�s membership in Cancun, Mexico, last fall at the 25th anniversary celebration Barter Congress.

�Our membership told us in a loud and clear manner that they not only wanted, but expected, standards and unity from IRTA,� she revealed. �We are compelled to act on those demands and feel that this meeting in Istanbul, as the first of many that will follow this year, was very apropos to be held where the continents meet.�

IMS/Continental Trade Acquiring Reno Exchange

Two weeks ago, in our April 19 Tuesday Report, we noted International Monetary Systems 12th acquisition of Eagle Barter Exchange of Chattanooga.

IMS (OTCBB:INLM), parent company of Continental Trade Exchange, has just concluded another purchase�the assets and client base of United Trade Network�s office in Reno. The facility serves more than 350 clients in the Reno and Lake Tahoe markets.

CEO Don Mardak noted, �Adding the UTN Reno operation enhances our presence in the western area of the United States, which is a great travel destination for our Northern California clients. Our company�s total membership roster now exceeds 7,300 clients, representing more than 10,000 cardholders.�

IMS Provides Projected Figures

Because of recent acquisitions and present negotiations, International Monetary Systems is offering guidance on its projected results for calendar 2005.

The company expects to increase its volume of barter transactions (one side only) from $37 million in 2004, to $48 million in 2005. This level of trade volume should result in gross revenue of approximately $6 million in 2005, an increase of 28% over the 2004 total of $4.7 million. A comparable increase in profitability is also expected.

For more information go to:

Bentley Commerce Moves Into Australia

Bentley Commerce Corporation (OTCBB:BLYC) has established a joint venture with Platinum Traders in Queensland. The Australian company will nationally promote and market Bentley�s trade exchange management system and Global Trade Marketplace. (Bentley�s network of exchanges now are located in the United States, Australia, Canada, Malaysia, Thailand, Colombia and South Africa.)

Daryl Loane, Platinum Traders� Managing Director, disclosed, �We selected Bentley Commerce for its superior technology, as well as their access to a large and growing international trade marketplace. We anticipate that over the next three years we will rapidly expand across Australia, adding about 40 additional local offices and thousands of new members to our group.�

For more information go to:

National Association Of Trade Exchanges Convention Sets Milestone

An incredible 3,500 acre 5-star winery/resort (The Chateau Elan) was the venue for the 21st convention of NATE. Located about an hour�s drive north of Atlanta, it was the most spectacular setting ever for NATE�s annual effort.

Ric and Andrea Zampatti and the service-oriented staff from The Barter Company were responsible for lining-up the impressive resort where everything�room, food & beverages, along with upscale spa services, were all 100% trade.

The May 5-7 event in Georgia saw Deborah Lombardi taking over as president from Victor Castano, thus becoming the first woman president of NATE.

At the Awards Banquet guest Krista Vardabash, IRTA�s executive director, was introduced to the attendees. The following awards were presented at the banquet:

  • Broker of the Year Award to Donna Burlingham of Eagle Barter Exchange.

  • President�s Award to Johnny Eagle of Eagle Barter Exchange.

  • The Monkman/Crumpton Award (NATE�s most prestigious award) to Fran Crumpton of Gulf Coast Trade Exchange.

Aside from the many activities of the convention, the resort provided an equally impressive experience. The very warm and genuine services of the Chateau�s entire staff, beginning with its hands-on president and CEO Henk Evers, was a pleasure.

IMS Going Upscale�Moving Office To Beverly Hills

The Southern California office of International Monetary Systems and parent to Continental Trade Exchange (OTCBB:INLM) has moved, with the intention of expanding its marketing into key areas of greater Los Angeles.

CEO Don Mardak explained, �We now have an office that is less than 150 yards from Rodeo Drive, in the heart of Beverly Hills. This will enable us to better serve our growing Los Angeles client base and to enroll higher profile businesses that are located in this dynamic marketplace.�

IMS was the sponsor of the recent National Association of Trade Exchanges annual convention in Atlanta, Georgia. And within the last 30 days the company has acquired a trade exchange in both Tennessee and Nevada. For more info go to:

Reaching For The Stars:

Uniting People & Standards In A Cashless Trading World

IRTA�s 26th Annual Conference is slated this year for September 22 to 25. It will be held at the Wyndham Palace Resort & Spa in Disney World of Orlando, Florida. Registration information including �Early Bird� rates are posted on the IRTA web site at

Last year marked 25 years for the International Reciprocal Trade Association. This year marks the first of the next 25. Precisely why this year�s convention is the FIRST of its kind. IRTA is inclusive of everyone and anyone who is affecting the world with their dreams and visions of changing the way businesses, communities, and individuals think about money and credit, and different currencies.

�The Association wants to create a forum that will excite the barter community and welcome other organizations to attend and share their visions and methods for affecting economies worldwide using cash alternative methods,� disclosed Krista Vardabash, IRTA Executive Director. �Members will, of course, enjoy the most attractive rates to attend the convention.�

Lois Dale, IRTA President, noted, �There�s a lot to be excited about for those of us in barter. We make a difference to so many people, businesses and economies around the world. This conference will highlight that power, as well as introduce us to barter models, alternative monetary systems, transaction based businesses, and organizations from around the world that share our common goals.�

IMS Acquires Lombardi�s Barter Business Unlimited

International Monetary Systems (OTCBB:INLM) has acquired Barter Business Unlimited (BBU) of Connecticut, adding to its growing Continental Trade Exchange network. The Hartford-area operation, founded by Debbie Lombardi, is one of America�s leading trade exchanges.

Lombardi, BBU�s founder and president, is the current president of the National Association of Trade Exchanges and the first woman ever elected to that position.

Don Mardak, CEO of IMS, asserted, �This merger is a quantum leap forward for our company, as BBU is a highly recognized barter company and Ms. Lombardi is respected throughout the barter industry. We look forward to her participation in IMS� future planning and marketing efforts.�

Continental Trade Exchange, a subsidiary of International Monetary Systems, now serves more than 8,500 businesses representing over 14,000 cardholders.

International Monetary Systems Reports Two More Successes

The best month in the company�s history as well as the securing of additional funding was announced by the New Berlin (WI) headquarters of IMS last week.

For the recent month of April reported revenue was $411,000, an increase of more than 15% over the same month in 2004, and the highest total recorded this year by the company.

CEO Don Mardak also disclosed that additional open-ended funding has been secured from private investors, increasing the total from a private placement to $810,000. �These additional funds will allow us to complete other trade exchange acquisitions that are currently in discussion and will provide us with additional working capital,�  he noted. For more information go to:

ITEX Annual Convention Held

This year�s ITEX Annual Broker Network Convention was held in Seattle, May 22 - 26. Independent licensed brokers and franchisees from more than 60 ITEX offices in the U.S. and Canada gathered to discuss initiatives for expanding the cashless marketplace in an online and off-line world.

The convention�s theme was Teamwork for Success. Keynote speaker was Jim Whittaker, the first American to summit Mt. Everest and former CEO of retailing giant REI. Whittaker shared his insights on reaching for the next �summit� in business and in life, stating, �If you aren�t living on the edge, you�re taking up too much space.�

The ITEX brokers came away with exciting ideas about how to stretch boundaries and how to step out of the comfort zones of life.

CEO Steven White said the convention�s focus was on sharing with and inspiring their team. �We were excited to have everyone together in Seattle, with many visiting for the first time. Working on ways to provide superior customer service as well as on our team building skills was truly exhilarating!�

For more information go to:

International Monetary Systems Shatters Monthly Revenue Record

Don Mardak, CEO of International Monetary Systems (OTCBB:INLM), proudly reported on the company�s recent activity, �This is a historic achievement for our company, as we have substantially surpassed the half million dollar mark in sales for May. Our three most recent acquisitions in Hartford (CT), Chattanooga (TN), and Reno (NV) were key factors in achieving these record numbers. Once again demonstrating the wisdom and success of our industry roll-up strategy.�

IMS, through its Continental Trade Exchange subsidiary, processed more than $5.2 million worth of trades which produced a gross income of $540,000. This represented an increase of 53% over the same period in 2004, and an increase of 31% over the company�s April 2005 sales. For more information go to

ITEX Reports Third Quarter Highlights

ITEX Corporation has announced its third quarter results of fiscal 2005, ending April 30. Here are the highlights:

+ Revenue for the quarter was $2,387,000, compared to $2,275,000 in the third quarter of fiscal year 2004. Revenue for the first nine months of the fiscal year was $7,661,000 compared to $7,770,000 for the same time period in fiscal year 2004.

+ Income from operations for the quarter was $148,000, compared to $451,000 in the same quarter for the prior year. Net income in the quarter ending April 20, 2004, included several non-recurring income items.

+ Total net income was $2,132,000, or 11-cents a share, for the third quarter of 2005, and includes a $1,960,000 income tax benefit. Total net income for the first nine months of fiscal year 2005 was $2,965,000, or 16-cents a share.

+ Assets increased to $5,881,000 compared to $2,923,000 at the end of the previous fiscal year, July 31, 2004. An income tax benefit was attributed to $2,260,000 of the asset increase, or 12-cents a share.

+ Cash increased to $1,268,000 compared to $215,000 at the end of the previous fiscal year. The company has no long-term debt.

For more information go to

Bernard Lietaer Scheduled Keynote Speaker

For IRTA�s 26th Annual International Convention

Currencies Expert Will Address Attendees On World Expanding Cashless Trading

The theme of this year�s IRTA Convention, to be held September 22-25 in Orlando, is �Uniting People & Standards In A Cashless Trading World.� The Friday morning kick-off will open with international financial expert and currency authority, Bernard Lietaer.

Lietaer has a distinguished and varied background: He�s the author of The Future of Money: Creating New Wealth, Work and A Wiser World. While at the Central Bank in Belgium he co-designed and implemented the convergence mechanism (ECU) to today�s successful euro currency system. During that period he also served as President of Belgium�s Electronic Payment System.

He co-founded one of the largest and most successful currency funds in Belgium, where he actively traded currencies worldwide, as well as wearing the hat of General Manager. Additionally, Lietaer was a professor of International Finance at the University of Louvain in Belgium and is currently a visiting professor at Naropa University in Boulder, Colorado.

Lois Dale, President of the International Reciprocal Trade Association, was enthusiastic about IRTA�s expanded focus. �This is the first convention ever that IRTA is welcoming different currency holders from around the world�be it reciprocal trade, barter exchanges or community currencies�to participate and build relationships. New vistas will be opening up for attendees in this truly exciting endeavor.�

IRTA�s Treasurer Bob Bagga added, �Lietaer has a knack for explaining complex money ideas in simple, understandable terms. He shares a unique vision of barter exchange systems becoming stronger and more collaborative with other systems of alternative trade. His vast experience and in-depth knowledge promises valuable insight and new ideas on how our industry can make it all happen.�

Krista Vardabash, IRTA�s Executive Director, was succinct in her summary. �We wanted someone to open our event with a message that barter exchanges are an important part of a global economic movement towards non-cash systems. Lietaer will expand our attendees� thinking with his message that exchange operators are an important part of the big picture.�

International Monetary Systems Creates Corporate Barter Division

A natural and obvious progression has taken place with IMS� Continental Trade Exchange, now one of the largest barter company�s in the world. They�re moving forward by officially creating a corporate barter division.

Unlike their retail barter network, which works with smaller businesses and professionals, corporate barter involves manufacturers, distributors, hotel chains and larger companies. Recently IMS has processed two higher-valued transactions with major distributors totaling $700,000.

CEO Don Mardak explained, �Our CTE barter system now serves 14,000 cardholders. Adding the dimension of corporate barter transactions is the next natural step. Inasmuch as we have a substantial infrastructure in place, we are in a position to successfully distribute the products of these corporate clients through our network.�

For more information go to:

West End Media Group Expands Operations Into Houston, San Diego

T.J. Donnelly, CEO of West End Media Group in Irving (TX), has announced expansion of his operations with two new office openings�Houston and San Diego. Founded by Donnelly in 1990, West End Media Group has been serving the south and southwest with bartered media.

Ted Holcomb Named President

Ted Holcomb, a veteran of 35 years in radio, television, print and web broadcasting, has joined West End Media Group as its president. Holcomb�s background ranges from working at an ABC held and operated radio station in Chicago to owning Muzak franchises in several cities.

He has worked at all levels of management in the media, from sales representative to Vice President of Sales for a CBS Station in Lexington (KY). In the past 3-years he�s sold $2.5 million in new business in network radio advertising. He was also instrumental in the success of a start-up construction industry web site.

For more information go to

IRTA Europe Chapter Renewed

Representatives of eleven trade exchanges in Europe met outside London on June 21 and 22 to discuss the re-formation of the IRTA Europe chapter.

The result of the two-day meeting was an overwhelming decision in favor of strengthening the chapter. It was hosted and sponsored by Bartercard UK, and held at their corporate offices in Richmond-on-Thames. Bartercard provided two nights of accommodations for attendees in addition to several meals and social events during the event.

Interim leaders chosen by attendees to serve for the next six months were Reiner Huseman from EBB (Germany) as President, Richard Logie from The Business Exchange (Scotland) as VP, Therecia Venema from E-banc (The Netherlands) and Alan Cartledge from Barter Network (England) as co-Secretaries, and Ian Jones from Bartercard UK as Treasurer.

�We have wanted to see a stronger IRTA Chapter in Europe for a long time,� admitted Ian Jones, Director of Bartercard UK. �This meeting, following the one in Istanbul in April, was successful in getting that message across.�

Reiner Husemann agreed. �It is important that we have a commitment to each other. I believe that we have a duty to work together to make a difference for businesses in Europe that want to use reciprocal trade.�

�There is a growing issue in Europe, caused by exchanges opening their doors and quickly closing them without the best intentions for the businesses joining the exchange, which gives our business a bad name,� Therecia Venema disclosed. �IRTA gives us the basic platform as well as a message that�s consistent with what we want to brand our members as ethical, professional exchanges required to abide by a code of conduct.�

IRTA�s Executive Director, Krista Vardabash, was enthusiastic. �It is exciting to see this chapter grow with top quality members who will represent IRTA most favorably.�

For more information go to, or call (585) 424-2940.

ITEX Makes Bold Industry Move In BXI Acquisition

BXI Exchange was started by M.J. McConnell back in 1960. McConnell, a member of IRTA�s �Barter Hall of Fame� was the acknowledged father of the trade exchange industry in America. And for many years BXI was the undisputed powerhouse of the industry. In the 1980s, for instance, the company could proudly claim a membership base exceeding 20,000; in those days the future seemed unlimited.

How times have changed! Despite some capable brokers in the field, the membership roles have plummeted year after year for nearly a decade. While conjecture for the demise can be debated, the fact is this once proud organization is a shell of its former self. At the time of the acquisition by ITEX, BXI�s membership roles totaled 8,000...still a considerable number, but a far cry from the days when the company was flying high.

Steven White, the astute and enterprising CEO of ITEX (OTCBB:ITEX), took advantage of the situation and propitiously snapped up the once-outstanding BXI organization with a bold move last week for $3,680,000. An acquisition that stunned the industry!

ITEX now has a membership in excess of 21,000, the largest in North America. Annual transaction volume will be north of $300 million, and over 300,000 transactions are expected to take place per year�or one nearly every 30 seconds of every business day.

Integration of the ITEX and BXI trading networks, where members of each will trade through one entity, is expected to be completed by the end of July. The company will operate from Bellevue (WA) under the ITEX brand. For more specific details on the merger go to

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