International Monetary Systems Files 10-QSB

Barter Industry Leader Profitable in Second Quarter, Net Revenue up 55%

New Berlin, Wis., August 18, 2003 -- International Monetary Systems, Ltd. (OTCBB: INLM), a worldwide leader in corporate and consumer barter services, recently filed its second-quarter 10-QSB financial report which showed a 55% increase in net revenue over the second quarter of 2002.

The company reported net revenue of $1,013,231 for the quarter ended June 30, 2003, compared to $653,700 for the same quarter of 2002. The revenue increase was attributed to internal growth of the company's Continental Trade Exchange barter network and the acquisition of Tradecorp of Columbus, Ohio; BarterNet of Brentwood, Calif., and TradeMasters of Louisville, Ky. The company's income of $152,270, before depreciation charged on equipment of discontinued operations and extraordinary charges, compared favorably to income of $16,417 in the second quarter of 2002.

For the six months ended June 30, 2003, the company's net income before depreciation and extraordinary charges reached $208,260 on gross revenues of $1,965,643.

Depreciation charged on the equipment still owned from the discontinued printing division and extraordinary expenses related to investor relations and consulting services reduced second-quarter net income to $28,207, compared to a net loss of $65,666 for the same period in 2002. Year-to-date, the company had a net loss of $62,407, compared to a loss of $111,489 for the same period of 2002.

For the quarter ending June 30, 2003, the company had an operating profit before interest, taxes, depreciation and amortization (EBITDA) of $140,954, compared to an EBITDA loss last year of $26,455. EBITDA for the six months ending on June 30, 2003 totaled $86,559.

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Source: International Monetary Systems, Ltd.