International Monetary Systems Reports Second Quarter Results

Revenue Up 41 Percent Over Prior Year; Barter Business Continues to Show Profit

New Berlin, Wis., August 30, 2002 -- Recently, International Monetary Systems, Ltd. (OTC Bulletin Board: INLM), reported record second quarter revenues of $866,711, compared to $614,705 for the same period in 2001, and a net loss of $65,666.

According to Don Mardak, Chief Executive Officer, "The barter business continues to remain strong and grow as we forecasted. We expect sustained growth throughout the year organically and through our aggressive acquisition strategy."

Gross profits increased 43% in the second quarter of 2002 to $653,700, up $196,210 from the same period of 2001. The Continental Trade Exchange barter business reported a profit of $12,936. Year to date net revenues increased 60% in 2002 to $1,225,003, compared to $766,437 in 2001. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $66,410.

Second Quarter Details

International Monetary Systems (IMS) experienced losses and unusual costs associated with acquisitions and its transition to the public markets.

The cost of entering the public markets was $57,684, which includes normal fees associated with membership to the Over-The-Counter-Bulletin-Board exchange, financial communications expenditures and other assorted costs. The company expects this level of expenditure to decrease going forward.

IMS' newly acquired Imagers Ink printing division posted a loss of $15,302 during its first three months of operation as an IMS subsidiary. The loss is attributed to a general slowness in the printing industry and integration costs associated with the acquisition.

The Company's JM Graphics pre press division incurred a loss of $5,616. However, using the IMS barter network to reduce non-cash expenditures, the pre press division reduced operating losses by 81% compared to the same period one year earlier.

Additionally, the company had a non-cash write-off of $20,670 for questionable receivables from Tradius Corp., an acquisition completed in the third quarter of 2001.

Total expenses during the second quarter were $738,099, an increase of 50% over the same period in 2001.

Second Quarter Highlights

During the second quarter, International Monetary Systems became a registered public company on the Over-The-Counter-Bulletin-Board exchange. The Company's decision to become a publicly traded entity was primarily to become a leading consolidator in the barter industry by acquiring synergistic exchanges.

The company had significant improvement in barter revenues compared to the same period in 2001, primarily attributed to the addition of customers through acquisitions and the organic growth of IMS' flagship network, Continental Trade Exchange.

Contact:

Source: International Monetary Systems, Ltd.