Slide 1: ITEX Investor Presentation November 2010
4 / ITEX INVESTOR PRESENTATION November 2010
Slide 2: Forward-Looking Statements and Solicitation Materials
Forward-Looking Statements and Solicitation Materials ITEX Corporation urges caution in considering its current trends end 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 Symbol Recent Price 52 Week Range Shares Outstanding Market Capitalization Institutional Ownership Insider Ownership Fiscal Year End Revenue - 2010 Cash Flow From Operations - 2010 ITEX.OB $4.75 $3.40- $5.50 3.6M $17.1M ~20% ~17% July 31 $16.925M $2.536M ae)
Slide 4: Cashless Exchange Industry
Cashless Exchange Industry ¢ $1.4B transaction value via local exchanges * 250 exchanges ° Fragmented industry * 200,000 member companies ° IRS codifies tax treatment in 1982 and requires 1099-B reporting Source — ITEX estimates ae)
Slide 5: ITEX Overview
° . ° ITEX Overview Largest membership B2B Trading Community in the United States and Canada 24,000 members Customer service provided by franchised Broker Network Enables members to attract new customers and generate incremental sales Members buy and sell within the Trading Community utilizing propr
Slide 6: Craigslist Barter Section
Craigslist Barter Section Wed oct 14 12 chocolate on och - (pittsburg /antioch) Need keys for your Car House. office ect - Az1 Cabinet ~$1- (santa rosa) Kettle One Citroen - (mission district) pic machanic for ford wagon - (san mateo) Last Minute DJ Services to barter for the NEW. Still Trying to Sw
Slide 7: Craigslist Barter Listing
Craigslist Barter Listing * Canon 40D, like new + 2GB compact flash (Renton) ¢ Reply to: sale-970341446 @craigslist.org [?] Date: 2010-10-14, 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, manual
Slide 8: ITEX Marketplace Listing
ITEX Marketplace Listin 8 —_
Slide 9: Marketplace Detail
Marketplace Detail
Slide 10: ITEX Member Benefits
. ° ITEX Member Benefits Obtain new customers Utilize unique sales channel Cash conservation by purchasing with ITEX dollars Monetize unproductive assets, excess capacity and inventory Broker Network for transaction support Customer loyalty and retention ae)
Slide 11: ITEX Community in Action
ITEX Community in Action Resort Hotel Fires 0 band es, Media nodal General Contractor * or ie Dentist Prints bu
Slide 12: Member Example - Seattle Dentist
Member Example - Seattle Dentist Accepted ITEX $ from: Paid ITEX $ for : ° CPA ° Printing ° Contractor * Auto detail ° Advertiser ° Flowers ° Moving Company * Accommodations Total Sales: $47,367 Avg Transactions: 22 Total Purchases: $41,559 Avg Volume: $9,814 Total Cash Fees: $ 6,289 Avg Client: 6 y
Slide 13: ITEX Competitive Advantages
ITEX Competitive Advantages Membership critical mass Customer service capability Products / services depth and diversity Brand recognition and currency liquidity Web based trading platform Established Infrastructure ae)
Slide 14: ITEX Payment Systems
@Otterpat Medio | >TTEX Payment Systems = Wetcome Sones Broker Buy It With ITEX iy Protie © screturntotsting © Seller Contact Information, © Steps to Buy i With TEX! contin @ enter a mene ts ot rected) @ ce eur ith [sampue a Tec ravens 28-208 ite center [oer nest To #2900003000006. Contact TEX Perso
Slide 15: Statement
STATEMENT CASH OUE $145.00"
Slide 16: Member Products & Services
Member Products & Services * Accommodation & Travel Retail — gifts, florists * Advertising & Media* ° Architects & Design ° Business Products/Services* * Consultants ° Restaurants Contractors Professional Services Business Equipment ° Entertainment* ° Printin; inting ° Real Estate & Related * Magazi
Slide 17: ITEX Strategic Objectives
ITEX Strategic Objectives Establish the ITEX trading platform as the standard for B2B cashless transactions Market penetration into the 25 million small businesses in the United States* Brand recognition of ITEX dollars Enhance, create and manage Marketplace Rules for the Trading Community License p
Slide 18: ITEX Growth Opportunities
ITEX Growth Opportunities * Organic Growth * Increase transaction volume through registration growth * Increase number of locally owned offices * Supplement primary franchise system with online marketplace * Licensing * ITEX SaaS Platform - Powered by ITEX * SuperMedia’s Super Trade Exchange * Latin
Slide 19: Software as a Service (SaaS)
Software as a Service (SaaS) Scalable platform technology CRM + Payment processing + Record keeping * Billing functionality * Reports Track digital currency; with any value Calculates transaction or subscription fees in USD Windows web-based platform Co-location & backup data facility ae)
Slide 20: Testimonials
Testimonials "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 w
Slide 21: An innovative way to survive
UC aninnovative way to survive Trading products and services is the PERFECT {0 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 curent ones, ITEX ~ America largest
Slide 22: Revenue
$18,000 $16,000 $14,000 $12,000 $1000 Revenue ce a cr $10,595 $10,283 $10,225 $14,646 $14,171 $15,964 $16,502 $16,925
Slide 23: Revenue Breakdown and Costs
Revenue Breakdown and Costs * Transaction fees: 67% ° 5% to 7.5% of ITEX dollar transaction amount (assessed to buyer and seller) ¢ ITEX retains 25%, balance to Broker * Subscription fee: 28% * $20 per member every four week billing cycle ° ITEX retains 65%, balance to Broker ° Other fees: 5% ae)
Slide 24: Cash Flow & Income From Operations
Cash Flow & Income From Operations $3,000 $2,500 | $2,000 f $1,500 $1,000 8 py 2003 2004 2005 2006 2007 2008 2009 2010 CashFlow —$(74) $28 $843 $1,836 $2,057 $2,374 $2,875 $2,536 Income $(642) $624 $729 $1,841 $1,505 «$1,501 $1,027 $1,674 24
Slide 25: Balance Sheet 7/31/2010
Balance Sheet 7/31/2010 Assets: Cash & ST Investments $ 5,169,000 Accounts receivable, net 859,000 Tax asset 6,018,000 Goodwill 3,282,000 Notes receivable (office sales) 605,000 Other assets & equip. 1,685,000 Total Assets $17,638,000 Lia S ee Shareholder Equity: $ 1,450,000 Other eres 1,319,000 Sto
Slide 26: Stockholders' Equity & Cash Balance
Stockholders’ Equity & Cash Balance $15,000 $12,000 $3,000 $6,000 $010 i re 2003 = 2004. = 2005. 2006S 2007 2008S 2009S 010 Equity S(481) $2,227 $4,959 $7,968 $12,380 $13,319 $13,981 $14,869 Cash $104 = $215 «$569 = $314. $1,753 $1,061 $2,557 $5,169
Slide 27: Stock Price
Stock Price 20042005 2006-007 20082009 0H $60 $1.05 $1.90 $2.88 $4.00 $4.40 $3.15 $4.75
Slide 28: Stock Price Compared to S&P
Stock Price Compared to S&P 500 18,210; mITECORS SEC 142.08 55 555993
Slide 29: Management Team
Management Team Years in Name Title Prior Experience Industry Steven White Chairman/CEO/CFO Ubarter.com, 26 Network Commerce Robert Benson VP Operations Ubarter.com, 17 Network Commerce Brian Argetsinger VP Marketplace ITEX Franchisee 17 Douglas Dagenais National Sales Chicago Barter 24 Shell Vacati
Slide 30: Reasons to Invest
Reasons to Invest Industry leader with attractive growth potential Strong cash flow Scalable business model Proprietary SaaS technology Unique distribution channel and community Intrinsic value of membership network ae)
Slide 31: The Cashless Marketplace
NY red) es The Cashless Marketplace 425425100107-0 John Smith Valid Thru Sample Company 07/2008