Slide 1: The ITEX Opportunity
(men) The ITEX Opportunity Presented June 2008 By Steven White, Chairman and CEO
Slide 2: Safe Harbor
Safe Harbor During the course of this presentation, we may make projections or other forward looking statements regarding future events or the future financial performance of ITEX. Such statements are only predictions and actual events or results may differ materially. We refer you to ITEX's filings
Slide 3: About ITEX
About ITEX Symbol Recent Price Range 52 weeks Shares outstanding Market Cap Long term debt Institutional ownership Fiscal Year Revenue FY/2008E Cash Flow FY/2008E ITEX.OB $.95 $.66 — 1.05 ~18M $17M < 3% ~5% July $15M $2.5M
Slide 4: ITEX Overview
ITEX Overview Largest membership trading community in the United States and Canada 24,000 registered members Broker network supports member base Transaction volume $270M in 2007 1000+ transactions per day ITEX enables members to attract new customers and generate incremental sales Members buy and se
Slide 5: How ITEX Works
How ITEX Works Resort Hotel ves coitactrst expand and upgrade ther facies General Contractor Trade Florist i
Slide 6: ITEX Strategic Objectives
ITEX Strategic Objectives Promote the ITEX trading community as the medium for B to B cashless transactions Establish ITEX trading platform as the industry standard Gain acceptance for ITEX dollars as the premier private currency brand Manage key elements of trading community process License platfor
Slide 7: Cashless Exchange Industry
Cashless Exchange Industry* * $1.4B transaction value annually * 200,000 member companies * 250 trade exchange entities * IRS codifies tax treatment under 1099b rules * Fragmented industry *Source — ITEX estimates (mex) ?
Slide 8: ITEX Competitive Advantages
ITEX Competitive Advantages Membership critical mass Customer service capability Private currency liquidity and acceptance ITEX Dollar brand recognition Exchange management learning curve Products / services depth and diversity Web based functionality State of the art trading platform (Tex) °
Slide 9: ITEX Member Benefits
ITEX Member Benefits New customers and distribution channels Monetize unproductive assets, excess capacity and inventory National broker network for transaction support Cash conservation, liquidity improvement Customer loyalty and retention (mex) »
Slide 10: Executive Privileges Program
Executive Privileges Program ° ITEX Payroll Services — Provided by ADP Small Business Services — ADP offers exceptional savings to ITEX members ° ITEX Job Listings — Powered by Simply Hired — ITEX members can post help wanted listings — Listings appear on MySpace, LinkedIn, NY Post, others * ITEX Co
Slide 11: Member Products & Services
Member Products & Services Accommodation & Travel Retail — gifts, florists * Advertising & Media* ° Architects & Design * Business Products/Services* Consultants * Contractors * Restaurants * Entertainment* * Professional Services ° Printing * Business Equipments ° Magazines & Newspapers * Real Esta
Slide 12: Transaction Documents
Transaction Documents ITEX Checks Worldwide Marketing eden 77 123 Business Drive ITEX CHECK Sacramento, CA 95825 j = Other Transaction Material * Pay online * Signed invoices ° Gift certificates * Faxes and emails (TEX 12
Slide 13: Sample Member Statement
Sample Member Statement ENT
Slide 14: ITEX Revenue Mix
ITEX Revenue Mix * Transaction fees —5 to 7.5% of transaction value —70% of revenue ¢ Subscription fees —$20 per member every 4 weeks —28% of revenue (HEX) «
Slide 15: ITEX Growth Opportunities
ITEX Growth Opportunities * Organic Growth —Increase new membership through marketing campaigns — Search engine optimization — National Sales Manager — New Position* —Add new product and service categories —Expand franchisee base geographically —Supplement primary franchise system with online market
Slide 16: Software as a Service (SaaS)
Software as a Service (SaaS) * Scalable platform technology —CRM —Payment processing —Record keeping —Billing functionality —Report * Tracks non-cash and cash currencies ¢ Windows web-based platform * Co-location & backup data facility (mx) »
Slide 17: 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 we
Slide 18: ITEX Key Metrics
ITEX Key Metrics * Transaction Volume: $270 million annually ° New members: * 2,639 in FY 2007, 3100 in FY 2008E * Churn: 14% YTD FY 2008, 18% in FY 2007 e Avg number of transactions: ° Avg transactions per member: ° Avg transaction volume: ° Avg transaction value: 40,000 per month 2 per month $810
Slide 19: Revenue
Revenue Fiscal 2003-2008 ($ in millions) $18.0 5 ane | $14.6 $142 $15.0 $12.0 4 $103 $10.2 $9.0 + $6.0 4 $3.0 4 Ss: T 1 1 r 1 2004 2005 2006 2007 2008E (me) »
Slide 20: EBITDA
EBITDA ($ in millions) Fiscal 2003-2008 $3.0 5 62.5 $2.0 $2.0 4 $1.5 ee $1.8 : $0.8 $0.8 | | S- | r [| r r r 2004 2005 2006 2007 2008E a pe o L oes fo} u L EBITDA is a non-GAAP financial measure. A reconciliation of GAAP to non-GAAP numbers can be found on the investor relations section of the ITEX
Slide 21: Balance Sheet 4/30/2008
Balance Sheet 4/30/2008 Assets: Cash & ST Investments $ 593,000 Accounts Receivable, net 1,050,000 Tax asset 6,972,000 Other Assets & Equip. 2,864,000 Good will 3,133,000 Notes receivable (office sales) 1,138,000 Total Assets $15,750,000 Liabilities & Shareholder Equity: Broker Commissions $ 1,208,0
Slide 22: Management Team
Management Team Years in Name Title Prior Experience Industry Steven White Chairman/CEO/CFO Ubarter.com, 23 Network Commerce James Gunther Controller Airborne, Clearwire, es Starwood Hotels Robert Benson VP Operations Ubarter.com, 16 Network Commerce Brian Argetsinger VP Franchising ITEX Franchisee
Slide 23: Peer Group Valuation
Peer Group Valuation INLM. DINE WSPI ITEX. Price (5/30/08) $.99 Shares 18M Revenue (ttm) $15M Market Cap (MC) $18M MC / Revenue 1.2x EBITDA (ttm) $1.9M MC / EBITDA 9x Gross Margin 35% Op Margin 10% ITEX INLM. DINE wsPl $.50 $5.00 $8.21 59M 27M 28M $15M $198M $97M $29M $135M_~—-$230M 2.3x 7X 2.4x $1.
Slide 24: Reasons to Invest
Reasons to Invest ¢ Industry leader with attractive growth potential ° Strong cash flow ¢ Unique distribution channel and community * Scalable business model ° Proprietary SaaS technology Profitable since fiscal 2004 ° Favorable valuation to peers ° Intrinsic value of membership network ° Strategic