International Monetary Systems Files 10-QSB

Barter Industry Leader Profitable in First Quarter, Net Revenue up 32%

New Berlin, Wis., May 17, 2004 -- International Monetary Systems, Ltd. (OTC BB: INLM), a worldwide leader in corporate and consumer barter services, recently filed its first-quarter 10-QSB financial report which showed a 32% increase in net revenue over the first quarter of 2003.

The company reported net revenue of $1,067,201 for the quarter ended March 31, 2004, compared to $810,818 for the same quarter of the previous year. The revenue increase was attributed to internal growth of the company's Continental Trade Exchange barter network (CTE) and the acquisitions of California Barter Exchange and BarterNet of Brentwood, Calif.

In the first quarter of 2004, the CTE barter network had net income of $126,762, compared to $51,573 in the same period of 2003. This represents an increase of $75,189, or 146%. During the quarter, non-recurring expenses related to a discontinued printing operation, lease payments and interest on loans from that business, along with charges for investor relations and consulting work associated with the public trading of the company's stock, created expenses of $88,606. This left a pre-tax profit of $38,156. Deducting an allowance for taxes of $9,539 resulted in first-quarter net income of $28,617 for the parent International Monetary Systems, compared to a loss of $90,614 for the first quarter of 2003.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ending March 31, 2004 totaled $119,049.

International Monetary Systems CEO Don Mardak commented, "We are very pleased with our first-quarter results. Historically, this has been the least-productive period of each year. So to begin 2004 with an early profit is quite encouraging." The entire 10-QSB report can be viewed at www.sec.gov.

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Source: International Monetary Systems, Ltd.