International Monetary Systems Files Annual Report

Revenue Increases 19% - Company is Profitable

New Berlin, Wis., March 31, 2005 -- International Monetary Systems, Ltd. (OTC BB: INLM), a worldwide leader in business-to-business barter services, has filed its Form 10-KSB Annual Report for the year ending December 31, 2004. During the year, IMS processed $37 million in barter transactions, which generated revenue of $4,732,960. This compared to the year 2003 figures of $32 million in barter transactions that produced revenues of $3,972,386. Total barter transactions for 2004 showed an increase of 16% over those for year 2003. In the same comparable period, revenue increased by 19%. The increased revenue was a result of the two acquisitions of trade exchanges in Modesto, CA and Metro Washington, D.C., plus a higher volume of transactions in the barter network.

For 2004, operating expenses increased by $816,982 or 22% over 2003. All additional operating expenses were a result of the acquisitions made during 2004 along with investor relations expenses for marketing stock. And though IMS now has more employees than it had in the past, the personnel needed to operate the acquired offices has been reduced from the number of employees that were there under previous management. The result of these economies of scale was a profit for the year in the trade exchange. In Calendar 2004, the Continental Trade Exchange operation had net income before taxes of $519,763. These profits were diluted by investor relations and other expenses in the International Monetary Systems holding company of $413,469, many of which were issuances of stock and other non-cash charges. This left a pretax net income for ongoing operations of $116,294. After deducting income tax expense, our net income from continuing operations was $91,012. Because we have now liquidated the final assets of our discontinued printing divisions, we took an additional write-off of those assets totaling $54,766. This loss from discontinued operations left net income of $36,246.

In 2004, payroll expenses increased by $491,109, or 23%, over 2003. Occupancy expenses decreased from $432,176 in 2003 to $284,635 in 2004 or 34%. These decreases were primarily a result of eliminating rent for the vacated printing facility. Selling and other expenses increased by $203,011 or 52%. Much of these costs were the investor relations charges referred to above. General and administrative expenses increased by 33% from $818,126 in 2003 to $1,088,529 in 2004.

For the calendar year ending December 31, 2004, IMS had net income of $36,246 compared to a loss of $242,259 for the same period in 2003. In 2004, earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $426,171.

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Source: International Monetary Systems, Ltd.