ITEX Announces Results for Second Quarter of Fiscal 2007

Bellevue, WA February 28, 2007 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 second quarter ended January 31, 2007.

We continue our forward motion with another profitable quarter even though we recognized a decline in revenue.  We attribute this decline primarily to the consolidation of broker offices and member accounts since the acquisition of BXI. said Steven White, Chairman and CEO.  Strong operational cash flow enabled us to repurchase shares and to begin initiatives to increase revenue and expand registrations from our current level of 200 new members per month. We plan to launch these initiatives in March and April, 2007. 

Second Quarter 2007 Highlights

·         Operating income was $528,000 compared to $315,000 for the second quarter in fiscal year 2006, a 68% increase.  Operating income for six months was $823,000 compared to $590,000, a 39% increase.

Revenue was $3,665,000 compared to $4,007,000 for the second quarter in fiscal year 2006, a 9% decrease.  Revenue for six months was $7,455,000 compared to $7,721,000, a 3% decrease.

·         Selling, general and administrative costs decreased 60% to $224,000 compared to $555,000 for the second quarter in fiscal 2006.  Selling, general and administrative costs for the six month period were $674,000 compared to $983,000, a 31% decrease.

Completed more than $66,000,000 in transaction volume by processing more than 157,000 transactions. Repurchased and retired 400,000 shares, reducing outstanding shares to 17,966,132. The Company has repurchased and retired 1,450,000 shares since January 2006 at a cost of $874,000. Relocated corporate headquarters to an improved facility and increased work space from 4,000 to 7,000 square feet.

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

About ITEX

ITEX, The Cashless MarketplaceSM, is a thriving community of 22,000 member businesses buying and selling more than $250 million a year in ITEX dollar transactions.  Member businesses increase sales through an exclusive distribution channel managed by 95 franchisees and licensees, by utilizing ITEX dollars to exchange goods and services.  ITEX is powered by ITEX Payment Systems, the leading payment technology platform for processing cashless business transactions.  ITEX is headquartered in Bellevue, Washington.  

Contact:

Alan Zimmelman

ITEX Corporation

425.463.4017

alan@itex.com

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 February 28, 2007, and ITEX undertakes no duty to update this information.