International Monetary Systems Files Third-Quarter Report

Barter Operations Profitable, Net Revenue Increases 13%

New Berlin, Wis., December 06, 2002 -- International Monetary Systems, Ltd. (OTC BB: INLM), a worldwide leader in corporate and consumer barter services, recently filed its 10-QSB report for the three months ending Sept. 30, 2002. For the quarter, net revenue increased 13% to $668,782, compared to $590,579 for the same period of 2001. The increase was a result of the recent acquisition of Tradecorp of Columbus, Ohio, along with additional internal growth of the company's Continental Trade Exchange (CTE) barter network.

In the third quarter of 2002, the CTE U.S. barter business reported a profit of $83,814, while the CTE Canadian barter network posted a profit of $2,539. However, these profits were offset by losses of $53,844 in the JM Graphics pre-press division, which included a write-off of $26,000 for uncollectible receivables. In addition, International Corporate Services, the company's new four-color printing division, incurred a loss of $66,939 during the quarter ended Sept. 30. The loss was attributed to a general slowness in the printing industry, plus the start-up costs of integrating the new division into the International Monetary System operation.

Extraordinary expenses for investor relations related to bringing the company public earlier this year also contributed to the third-quarter net loss, which totaled $69,854. Deducting the investor relations expenses, bad debt write-off and non-cash expenses, the company had an operating profit before interest, taxes, depreciation and amortization (EBITDA) of $13,215.

Year-to-date net revenue increased 40% from $1,356,587 for the first nine months of 2001 to $1,893,758 for the same period in 2002. The net loss for the first nine months of 2002 was $181,343, compared to net loss of $42,475 for the same period ending Sept. 30, 2001. EBITDA for the nine months ending Sept. 30, 2002, totaled $147,658, excluding extraordinary expenses.

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Source: International Monetary Systems, Ltd.