ITEX CORPORATION CONTINUES EXPANSION IN CHICAGO MARKET

Bellevue, WA February 7, 2008 ITEX Corporation (OTCBB: ITEX), The Membership Trading CommunitySM, a leading marketplace for cashless business transactions in North America, is rapidly expanding in the Chicago market, having registered the prestigious Ala Carte group of 23 restaurants as well as retaining  Karen Kelly to lead ITEX's efforts to add hospitality companies to the Trading Community.

Ala Carte Entertainment, www.aceplaces.com, was founded by Freddie Hoffman more than 30 years ago and has introduced an eclectic variety of unique restaurants and night life hot spots to the Chicago area.  Most of its locations offer catering and private party spaces; for example, Moretti's Ristorante and Pizzeria's four locations feature casual catering party platters to-go for any home or office party.

ITEX's relationship with Ala Carte Entertainment gives ITEX a boost as it expands its offerings in the Chicago area. In addition, a new Team member has been added, Karen Kelly, a graduate of Levy University in Chicago with majors in hospitality and business. She has 15 years experience in the hospitality industry. Karen is leading the ITEX expansion in the states of Illinois, Indiana and Wisconsin, attracting quality hospitality companies to the ITEX Trading Community.

Ala Carte Entertainment, said John McKendrick, Ala Carte Controller, is planning  to conduct more than $200,000 in annual  transactions with ITEX members through its Chicago area restaurant brands, which include Excalibur, Sam Houston's House, Famous Freddie's, Fin McCool's, Lion Head Pub, Chandler's Chophouse and Moretti's Ristorante and Pizzeria.

 We are very pleased to have Ala Carte Entertainment, one of the Chicago area's premier dining organizations, as our newest member, said Steven White, Chairman and CEO of ITEX.  The company's entrepreneurial management team understands the benefits of having small business patrons frequenting their restaurants and utilizing the ITEX dollars received for a variety of local services such as advertising and printing.

Karen Kelly is providing additional value for us as she focuses member recruitment on hospitality companies - a high demand request from our trading members. We are really gaining traction in our Chicago office, registering some great businesses and energizing our local trading community, said White. 

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 increase revenues and sustain profitability; the availability of adequate working capital; our dependence both on key personnel and our franchise 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 7, 2008, and ITEX undertakes no duty to update this information. For more information, please visit www.itex.com