ITEX Announces Results for First Quarter of Fiscal 2007

Bellevue, WA November 29, 2006 ITEX Corporation (OTCBB: ITEX), The Cashless MarketplaceSM, a leading marketplace for cashless business transactions in North America, today filed its Form 10-QSB with the Securities and Exchange Commission and announced its results for its fiscal 2007 first quarter ended October 31, 2006.

We achieved modest growth in revenue, operating income and net income.  The financial highlight for the quarter was the retirement of all remaining debt associated with the July 2005 acquisition of BXI Exchange, Inc. We now have no long term debt. said Steven White, Chairman and CEO.  We remain heavily focused on increasing new member enrollment, enhancing member benefits and participation, and growing revenue.

Mr. White concluded, For the past three consecutive years we have had profitable operations and we are pleased to continue this trend into the fourth year.  Enthusiasm is high in our Broker Network and we plan to harness this positive energy to assist us in several growth initiatives, including co-branding partnerships, marketing campaigns to increase member registrations and attract potential franchisees, and enhanced member referral programs.

Selected First Quarter 2007 Results Compared to First Quarter 2006

Revenue was $3,790,000 compared to $3,714,000

·         Income from operations was $295,000 compared to $275,000

·         Income before taxes was $359,000 compared to $285,000

·         Net income was $237,000 compared to $188,000

·        Net cash provided by operations was $944,000 compared to $865,000

·         Total liabilities decreased to $2,291,000 from $2,695,000 at fiscal year end 2006

About ITEX:

ITEX, The Cashless Marketplace, is a leading marketplace for cashless business transactions in North America. ITEX processes more than $250 million a year in transactions through 22,000 member businesses managed by 95 franchisees and licensees. Member businesses increase sales through an exclusive distribution channel by utilizing the ITEX Dollar 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, Washington.

Contact:
Alan Zimmelman
425.463.4017
alan@itex.com

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 sustain profitability; the availability of adequate working capital; our dependence both on key personnel and our broker 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-KSB and Forms 10-QSB, which are available at www.sec.gov., including under the caption, "Management's Discussion and Analysis of Financial Condition and Results of Operations." All information set forth in this release is as of November 29, 2006, and ITEX undertakes no duty to update this information.