ITEX Announces Results for First Quarter of Fiscal Year 2011

BELLEVUE, Wash., Dec. 14, 2010 /PRNewswire-FirstCall/ -- ITEX Corporation (OTC Bulletin Board: ITEX), The Membership Trading Community(SM), 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 2011 first quarter ended October 31, 2010.

"Revenue increased 5 percent in the first quarter of fiscal 2011 compared to the same period last year," said Steven White, Chairman and CEO.  "The increase in revenue is largely attributed to our web services initiative with our core business revenues remaining steady."

Mr. White continued, "Income from operations of $292,000 decreased compared to the first quarter of fiscal 2010, primarily due to an increase in legal fees for current litigation and the recent proxy contest. Putting aside the increase in legal expenses, we are pleased with this quarter's results.  Despite the ongoing difficult economic conditions, our company continues to perform well."

First Quarter 2010 Highlights

• Revenue increased 5 percent to $4.112 million compared to $3.924 million in the same period last year;
• Income from operations of $292,000 compared to $340,000 in the same period last year;
• Net income of $203,000 compared to $277,000 in the same period last year;
• Cash at end of period increased to $5.399 million from $5.169 million on July 31, 2010;
• Stockholder equity increased to $14.993 million from $14.869 million on July 31, 2010;
• Paid a $0.025 per share quarterly cash dividend in the first quarter;
• Purchased the member list of Genesis International, LTD of Greenwich, CT, consisting of approximately 160 members.

Subsequent Event

• In November, we entered into an agreement with U.S. Bank to increase the maximum loan amount under our revolving credit facility from $2.5 million to $3 million.
• Announced a $0.04 per share quarterly cash dividend for shareholders of record on December 10, 2010.

About ITEX

ITEX, The Membership Trading Community(SM), is a thriving network of participating member businesses.  Members 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, the leading payment technology platform for processing cashless business transactions.  ITEX is headquartered in Bellevue, WA.  For more information, please visit ITEX's website at www.itex.com.  We routinely post important information on the investor relations portion of our website.

Forward-Looking Statements

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:  our revenue growth and success being tied to the operations of our broker network; our future revenue growth remaining uncertain; our brokers taking actions that could harm our business or our reputation; our failure to deal effectively with member disputes; our business being subject to online security risks; unplanned system interruptions or system failures; claims and lawsuits against us that may result in adverse outcomes; 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. ITEX undertakes no duty to update or revise any forward-looking statements.

For more information, please visit www.itex.com

SOURCE ITEX Corporation