International Monetary Systems Files 10-QSB

Revenue Increases 7% as Company Invests in Organic Growth

New Berlin, Wis., May 16, 2005 -- 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 7% increase in gross revenue over the first quarter of 2004.

In October of 2004, IMS management made a decision to invest in its infrastructure by hiring a staff of outside salespeople and opening a new office in the Greater Los Angeles area. Unlike the process of acquiring trade exchanges, in which the costs of acquisition can be capitalized, all charges incurred in the Los Angeles startup have been expensed. This resulted in lower profits for the barter system in the first quarter of 2005. But management believes that this move was in the best interests of the Company and will provide long-term gains in both revenue and profitability. In the quarter ending March 31, 2005, gross revenue increased to $1,142,748 compared to $1,067,201 for the first quarter of 2004. In the first quarter of 2005, the Continental Trade Exchange barter business had a profit of $31,576, compared to $126,762 in the same period of 2004. This represents a decrease of $95,186. The reduction in profitability was primarily a result of the Company's opening its new Los Angeles office. Startup costs for this venture represent most of the decline in profits from last year.

Additional expenses of $50,254 for the parent holding company produced a net loss of $19,729 for the first quarter of 2005. This compared to net income of $28,617 for the first quarter of 2004. Total expenses during the first quarter of 2005 increased from $1,029,045 in the first quarter of 2004 to $1,169,097 at the end of the current period. The increased expenditures were attributed to the additional overhead costs from acquisitions made in 2004, expenses of opening the new Los Angeles office, and investor relations consulting fees.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ending March 31, 2005 totaled $84,342.

Liquidity and Sources of Capital

During the first quarter of 2005, the Company's cash balance grew to $587,696 from $83,669 on December 31, 2004. The increase in cash was derived from proceeds of three private placements, which were concluded in March of 2005.

Since the end of calendar year 2004, our current assets increased by $452,549 to $1,754,829. During the same period, our total assets increased $189,707 from $4,870,360 on December 31, 2004 to $5,060,067 on March 31, 2005.

During the first quarter of 2005, current liabilities decreased by $133,456 to $751,894. This created a current-assets-to-liabilities ratio of 2.33 to 1. Long-term debt increased by $592,391 and total liabilities increased by $458,935 during the same period. This increase occurred because of funds borrowed in the private placements described above. As a result, the debt to equity ratio increased from 63% at the end of 2004 to 86% after the quarter ending March 31, 2005. This is convertible debt, however, and may be converted to equity in the future.

About International Monetary Systems

Founded in 1989, International Monetary Systems (IMS) serves more than 7,300 customers in 29 U.S. markets. Based in New Berlin, Wis., IMS is one of the largest publicly traded barter companies in the world and is continually expanding its exchange locations. The company's proprietary transaction network enables companies and individuals to trade goods and services throughout North America. Using an electronic currency known as trade dollars, IMS exchanges allow companies to create cost savings and to improve operations by taking advantage of barter opportunities in their business models. Managed by seasoned industry veterans, IMS is a recognized member of the National Association of Trade Exchanges (NATE) and the Barter Association National Currency (the BANC). Further information can be obtained at the company's Web site at: www.internationalmonetary.com.

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Source: International Monetary Systems, Ltd.