International Monetary Systems Files First Quarter Report

Revenue up 43%, CTE Barter Exchange Continues to Increase Profitability

New Berlin, Wis., May 21, 2003 -- International Monetary Systems, Ltd. (OTC BB: INLM), a worldwide leader in corporate and consumer barter services, has filed its 10-QSB financial report for the three months ending March 31, 2003.

In the recently completed quarter, gross revenue increased to $952,411, a 43% increase from $665,446 reported for the first quarter of 2002. Net revenue increased 42% to $810,818, compared to $571,303 in the first quarter of 2002. The revenue increase was a result of higher trading volume of the Continental Trade Exchange barter network, plus several recent acquisitions, commented Don Mardak, president and chief executive officer.

For the first quarter of 2003, the barter business reported a profit of $51,573, compared to a profit of $31,633 for the same period of 2002. However, the company's printing and graphics divisions had losses totaling $54,148. Non-operating expenses for investor relations and consulting work associated with the public trading of the company's stock created additional expenses of $118,244, resulting in a net loss of $90,614 for the quarter.

None of first-quarter loss was from barter operations, but was related to the consulting expenses involved with marketing of the company's stock and now-divested printing operations, Mardak explained. "Furthermore, most of the consulting costs were paid through the issuance of shares of the company's common stock and did not have a negative effect on the company's cash flow," he added.

For the three months ending March 31, 2003, earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $89,696, excluding stock promotion and investor relations expense. This will be the last quarter in which the results from the printing and prepress divisions will be included in the company's income statements, because a majority interest in those operations was sold on April 1, 2003.

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Source: International Monetary Systems, Ltd.