Slide 1: ITEX Investor Presentation
4 / ITEX INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements and Solicitation Materials
Forward-Looking Statements and Solicitation Materials ITEX Corporation urges caution in considering its current trends and any outlook on earnings disclosed in this communication. In addition, certain matters discussed may constitute forward-looking statements. These forward-looking statements invol
Slide 3: About ITEX
About ITEX 3 Symbol ITEX.OB Recent Price $3.50 52 Week Range $2.96 - $4.55 Shares Outstanding 2.95 M* Market Capitalization $10.3 M Insider Ownership 23% Fiscal Year End July 31 Revenue - 2012 $15.8 M Revenue - 2011 $16.4 M Cash Flow From Operations - 2012 $1.9 M Cash Flow From Operations - 2011 $1.
Slide 4: Cashless Exchange Industry
Cashless Exchange Industry o$680 M transaction value via local exchanges o$ 56 M in cash revenues o300 exchange locations oFragmented industry o90,000 member companies oITEX has 27% market share oIRS codified tax treatment in 1982 and requires 1099-B reporting Source - Estimates based on ITEX's info
Slide 5: ITEX Overview
ITEX Overview 5 oLargest membership B2B Trading Community in the United States and Canada* o23,500 members oCustomer service provided by franchised Broker Network oEnable members to attract new customers and generate incremental sales oMembers buy and sell within the Trading Community utilizing prop
Slide 6: Craigslist Barter Section
Craigslist Barter Section oSaturday, October 14 o12 chocolate on chocolate cupcakes in antioch - (pittsburg / antioch) oNeed keys for your Car..House..office ect - oA-1 Cabinet Maker/Remodel/Repair/New/Vanity Master - $1 - (santa rosa) oKettle One Citroen - (mission district) pic omachanic for ford
Slide 7: Craigslist Barter Listing
Craigslist Barter Listing oCanon 40D, like new + 2GB compact flash (Renton) oReply to: ###@craigslist.org Date: 2012-010-14, 1:02PM PST I'd like to trade my year and a half old Canon 40D body. Like new condition. Always kept in a Crumpler bag, no scratches, etc. Includes box, manuals, battery, charg
Slide 8: ITEX Marketplace Listing
ITEX Marketplace Listing ron Both _arkopiace Ads |_Mamber Businesses Featured Ads What Where wiamiscachriss40 ESD Recent Ads Want Ads Featured Listings Browse Local Directory Accommodation & Travel Your Trade Director: Personal Care & Services sabes Printing & Stationery Roal Estate & Construction ‘
Slide 9: Marketplace Detail
Search Featured Ads Recent Ads Want Ads Local Directory ‘Our Members Visitors Guide My Balance $0.00 ‘Adda listing View My Account Questions? ‘Your Trade Director: John Doo ‘B 916.990.9009 Marketplace Detail <<Retun © Best Western - White House Inn Contact Information Listings Menu Terri Smieja 6 va
Slide 10: ITEX Member Benefits
ITEX Member Benefits 10 oObtain new customers oUtilize unique sales channel oCash conservation by purchasing with ITEX dollars oMonetize unproductive assets, excess capacity and inventory oBroker Network for transaction support oCustomer loyalty and retention
Slide 11: ITEX Community in Action
ITEX Community in Action Resort Hotel Hires contractors to expand and upgrade their facilites, Media Purchases hotel accommodations for sales promotions and business cards and stationery from a printer. General Contractor Trades for dental services for Florist staff and pur Launches an ad campaign m
Slide 12: Member Example - Seattle Dentist
Member Example - Seattle Dentist Accepted ITEX $ from: oCPA oContractor oAdvertiser oMoving Company Total Sales: $47,367 Total Purchases: $41,559 Total Cash Fees: $ 6,289 Paid ITEX $ for: oPrinting oAuto detail oFlowers oAccommodations Avg. Transactions: 22 Avg. Volume: $9,814 Avg. Client: 6 years 1
Slide 13: ITEX Competitive Advantages
ITEX Competitive Advantages o Membership critical mass o Multi-office Broker network o Customer service capability o Products / services depth and diversity o Brand recognition and transaction liquidity o Web-based trading platform o Established infrastructure 13
Slide 14: Buy It with ITEX transaction
Home Brokers << Return to Listing My Balance == ‘$0.00 ‘Seller Contact information <2 REE AR Aad tain] @ Filin the amount (needed) Questions? View My Account Bus, Name: BEST WESTERN HOTELS g Ente'a memo field (not required) Contact: Terri Smieja Phone: 402.592.2918 Email: Click Here @ Click Buy It!
Slide 15: Statement
STATEMENT CEO: ‘Closing Balance: 8 500.00. § 2.01000. 519,674.12 S10.178:42 if [roncrases | rocrees | casnrees | (ome —[rewes] cone] DESCRIPTION SAS, @ 2 © @ @ @ @ @ CASH DUE OPENING BALANCE $250.12 Se m3. 2018 72-128486-0 | GS. WORLOWIDE MARKETING casn nue |@® _$145.00
Slide 16: Member Products & Services
16 Member Products & Services oAccommodation & Travel oAdvertising & Media* oBusiness Products/Services* oContractors oEntertainment* oPrinting oMagazines & Newspapers oHealth and Fitness* oCollectibles oAuto Repair Services oRetail - gifts, florists oArchitects & Design oConsultants oRestaurants oP
Slide 17: ITEX Strategic Objectives
ITEX Strategic Objectives 17 oEstablish the ITEX trading platform as the standard for B2B cashless transactions oMarket penetration into the 26 million small businesses in the United States* oBrand recognition of ITEX dollars oEnhance, create and administer Marketplace Rules for the Trading Communit
Slide 18: ITEX Growth Opportunities
oOrganic Growth oIncrease transaction volume via registration growth oIncrease number of locally-owned offices oSupplement primary franchise system with online marketplace oAcquisitions oEight trade exchange membership lists since 2005, with plans for more 18 ITEX Growth Opportunities
Slide 19: Testimonials
Testimonials 19 "ITEX has helped me connect with the exact customers we want -from Florida to California - that we wouldn't have had any other way. ITEX has also helped us pay for real business expenses with ITEX dollars instead of cash." - Nick Owner of a commercial printing business "Not only have
Slide 20: Discover an innovative way to survive
Discover =; an innovative way to survive “Trading products and services is the PERFECT way to increase sales and improve your bottom line.” - Steven White, CEO, ITEX Corporation With the current economic uncertainty, your business can use barter to attract new customers and retain current ones. ITEX
Slide 21: Revenue, Fiscal Years 2003-2012
$18,000 $16,000 $14,000 $12,000 $10,000 i go L Fiscal Years 2003-2012 Revenue 2003 = 2004 = 2005» 2006) 2007 2008 ~— 2009-2010 2011 = 2012 $10,595 $10,283 $10,225 $14,646 $14,171 $15,964 $16,502 $16,925 $16,424 $15,786
Slide 22: Revenue Breakdown and Costs
Revenue Breakdown and Costs 22 oTransaction fees: 67% o5% to 7.5% of ITEX dollar transaction amount (assessed to buyer and seller) oITEX retains 25%, balance to Broker oSubscription fee: 30% o$20 per member every four week billing cycle oITEX retains 65%, balance to Broker oOther fees: 3%
Slide 23: Cash Flow & Income From Operations
Fiscal Years 2003-2012 Cash Flow & Income From Operations 2003 2004 +2005. -«2006-»«007»=«2008-«2009 «2010201 ata CashFlow (74) $28 $843 $1,836 $2,057 $2,374 $2875 $2,538. $1,684 $1,803 Income ${642) $621 $729 $1,941 $1,505 $1,501 $1,027 $1,674 $1,108. $1,110
Slide 24: Balance Sheet 7/31/2012
24 Balance Sheet 7/31/2012 Assets: Cash & ST Investments $ 1,942,000 Accounts receivable, net 716,000 Tax asset 4,896,000 Goodwill 3,191,000 Notes receivable (franchisees) 1,619,000 Other assets & equip. 747,000 Total Assets $13,111,000 Liabilities & Shareholder Equity: Accounts Payable $ 85,000 Bro
Slide 25: Cash Returned To Stockholders
Fiscal Years 2003-2012 Cash Returned To Stockholders $1,000 7 $800 H 3 $600 cate $400 Ee A $200 fs Sor cos 2001 2005 2005 2007 2008 2am 2010 ~—~—« 2012 Repurhases — $39 $25 $578 $322 S162 $30 $9 $421 $4,574 ee ) $541 $604 ‘Since fiscal 2004 ITEX has returned $7.4 milion to stackhldersin the form of
Slide 26: Stock Price
Fiscal Years 2003-2012 Stock Price 2003 «=—-2004 «= 2005) 2006 )= 2007 -)= 2008) 2009 2010 2011 012 $60 $1.05 $1.90 $288 $4.00 $440 $3.15 $4.75 $4.05 $3.90 ‘ividends were inte in 2010 as pid 38 centsin iden per share fr atotal 1.234. since fiscal 200.
Slide 27: Stock Price Compared to S&P
27 Stock Price Compared to S&P 500 Green line : ITEX Gray line: S&P 500 D: Dividend payments
Slide 28: Management Team
28 Management Team Steven White Chairman & CEO Ubarter.com, 29 Network Commerce John Wade CFO (as of 1/1/2013) Freeshop, Aptimus 10 Robert Benson VP Operations Ubarter.com, 22 Network Commerce Brian Argetsinger VP Marketplace ITEX Franchisee 21 Troy Hellman Technology ITEX 12 Alan Zimmelman Communic
Slide 29: Board of Directors
Years in Name Title Prior Experience Industry 29 Board of Directors Steven White Chairman Ubarter.com, Network Commerce John Wade Secretary, Treasurer Freeshop, Aptimus, Mercent Eric Best Compensation Chair MindCorp, Mercent Nominating Chair Timothy Morones Audit Chair DataSphere, Getty Images, Info
Slide 30: Reasons to Invest
30 Reasons to Invest oIndustry leader with attractive growth potential oStrong cash flow oScalable business model oProprietary technology oUnique distribution channel and community oIntrinsic value of membership network
Slide 31: ITEX contact
~z ITEX) 775.829.2990 John Smith Sample Company Py EN