ITEX Corporation Completes Intagio Acquisition

Franchisee Purchases Rights to Manage Selected Former Intagio Members BELLEVUE, Wash., Aug. 1 /PRNewswire-FirstCall/ -- ITEX Corporation (OTCBulletin Board: ITEX), The Membership Trading Community(SM), a leadingmarketplace for cashless business transactions in North America, todayannounced it had completed the acquisition of the trade exchangemarketplace previously operated by Intagio Corporation of San Francisco,California. In addition, it entered into a separate agreement with NYTOTrade Incorporation, ITEX's largest franchise, granting for $200,000 theright and license to manage the newly acquired members located in NewJersey and New York. The New York franchise is owned and managed by Mr.John Castoro, President. On July 30th, ITEX announced it had entered into an agreement toacquire the trade exchange marketplace previously operated by IntagioCorporation for $3.15 million. As a result of the acquisition, ITEX now hasmore than 24,000 member businesses. "We are pleased to have successfully completed this acquisition,expanding our member base in the ITEX Trading Community as well ascontributing to the growth of our franchisees. We swiftly reached anagreement with our largest franchise to manage a group of our newlyacquired members. We are confident John and his team will quickly welcomeand assimilate these members into the ITEX Trading Community. The remainingmembers will be closely managed by corporate-owned offices in SanFrancisco, Chicago, Cleveland and two suburbs near Hartford, CT," said ITEXChairman and CEO Steven White. White added: "So far the integration of the new members has beenseamless. Now we will work to expand transaction volume as quickly aspossible. John Castoro is an established leader and directs a verysuccessful franchise. John's actions to quickly execute our agreement allowour corporate team to focus on integration efforts in the other key marketswhere the former Intagio members are concentrated." Mr. Castoro, who operates the largest ITEX franchise, with offices inNew Jersey and New York City, purchased the right and license from ITEX tomanage certain former Intagio members who are based in New York and NewJersey. This transaction creates for Mr. Castoro's franchise an enterprisegenerating nearly $1.25 million in cash transaction and subscription feerevenue a year, with more than 1,400 members conducting $18 million peryear in transaction volume. John Castoro, President of NYTO Trade Incorporation, commented, "Thisagreement creates a stronger regional trading community for the formerIntagio members, as well as for existing ITEX members in the New Jersey andNew York area. Expanding our member base has always been our top priority.I am eager to get all members actively participating in the ITEX Tradingcommunity." About ITEX ITEX, The Membership Trading Community(SM), is a thriving community ofmember businesses buying and selling more than $250 million a year in ITEXdollar transactions. Member businesses increase sales through an exclusivedistribution channel managed by franchisees, licensees and corporate-ownedlocations, by utilizing ITEX dollars to exchange goods and services. ITEXis powered by ITEX Payment Systems, the leading payment technology platformfor processing cashless business transactions. ITEX is headquartered inBellevue, Washington. This press release contains forward-looking statements that involverisks and uncertainties concerning our expected performance (as describedwithout limitation in the quotations from current management in thisrelease) and comments within the safe harbor provisions established underThe Private Securities Litigation Reform Act of 1995. Actual results maydiffer materially from the results predicted and reported results shouldnot be considered as an indication of our future performance. We believethat these potential risks and uncertainties include, without limitation:the continuing development of successful marketing strategies for ourconcepts; our ability to increase revenues and sustain profitability; theavailability of adequate working capital; our dependence both on keypersonnel and our franchise network; and the effect of changes in theoverall economy and in technology. Statements in this release should beevaluated in light of these factors. These risk factors and other importantfactors that could affect our business and financial results are discussedin our periodic reports and filings with the Securities and ExchangeCommission, including our Forms 10-KSB and Forms 10- QSB, which areavailable at http://www.sec.gov., including under the caption,"Management's Discussion and Analysis of Financial Condition and Results ofOperations." All information set forth in this release is as of August 1,2007, and ITEX undertakes no duty to update this information. For more information, please visit http://www.itex.com.