Press Releases

ITEX Announces Results for Second Quarter of Fiscal 2010

Bellevue, WA March 9, 2010 ITEX Corporation (OTCBB: ITEX), The Membership Trading CommunitySM, a leading marketplace for cashless business transactions in North America, today filed its Form 10-Q with the Securities and Exchange Commission and announced results for its fiscal 2010 second quarter ended January 31, 2010.

Our quarterly results recognized gains in all key areas, most notably in revenue and income from operations compared to last year's second quarter, and in our cash position compared to our 2009 fiscal year end, said Steven White, Chairman and CEO.  Revenue growth was primary due to our media and web services initiatives and in part to an increase in association fee revenue.  Income from operations increased as a result of revenue growth and reduced operating expenses.  Our cash position increase reflected our operational income and the retirement of debt from acquisitions.  In the second quarter of the prior year, $928,000 was used for acquisition loan repayments.

Mr. White continued, Non-traditional digital currencies that supplement or replace cash, check and credit card transactions are gaining in popularity in a variety of business models.  ITEX has a proven technology platform utilizing a digital currency for B2B transactions.  We will continue to expand our presence in the cashless processing marketplace by improving our services to members and franchisees, enhancing our technology platform and website, and expanding our web services initiative.  Our strong financial position provides us the ability to consider a variety of opportunities to expand our market share, enhance our technology and increase shareholder value.  We will continue to manage our finances in a disciplined and prudent manner while investing in our future to ensure our continued success. 

Second Quarter 2010 Highlights

·         Income from operations of $526,000 compared to $235,000 in the same period last year;

      Revenue of $4,537,000 compared to $4,365,000 in the same period last year;

·         Net income of $172,000 compared to $134,000 in the same period last year;

·         Cash at end of period of $3,627,000 compared to $2,557,000 on July 31, 2009;

·         Stockholder equity of $14,460,000 compared to $13,981,000 on July 31, 2009;

·         Broker incentive expense of $79,000 for a computer upgrade initiative planned in conjunction with the upcoming launch of Office 2010.

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

About ITEX

ITEX, The Membership Trading CommunitySM, is a thriving community of member businesses.  Member businesses increase sales through an exclusive distribution channel managed by franchisees, licensees and corporate-owned locations, by utilizing ITEX dollars to exchange goods and services.  ITEX is powered by ITEX Payment Systems, a leading payment technology platform for processing cashless business transactions.  ITEX is headquartered in Bellevue, Washington.  We routinely post important information on the investor relations portion of our website.

Company Contact

Alan Zimmelman

ITEX Corporation

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-K and Forms 10-Q, which are available at www.sec.gov. All information set forth in this release is as of March 9, 2010, and ITEX undertakes no duty to update this information.