International Monetary Systems Files Profitable Quarterly Report

Revenue increases by 44%, net income up 180%

New Berlin, Wis., August 15, 2005 -- International Monetary Systems, Ltd. (OTC BB: INLM), a worldwide leader in business-to-business barter services, has filed its 10-QSB quarterly report for the period ending June 30, 2005. The effects of three recent acquisitions in Hartford, CT, Chattanooga, TN, and Reno, NV, are reflected in the 2005 second quarter financial information.

In the quarter ending June 30, 2005, the Company's gross revenue increased 44% to $1,597,891, compared to $1,110,410 for the second quarter of 2004. The increased revenue was a result of the three acquisitions described above, coupled with additional internal growth of our Continental Trade Exchange barter network.

In the second quarter of 2005, the barter-division operating subsidiary had net income of $274,341. This represents an 89% increase over the $144,819 generated during the same three months of 2004. In the current period, the International Monetary Systems holding company had additional expenses for accounting, interest and investor relations, which reduced this net income to $151,107 before taxes. This represents a 186% increase over the pre-tax net income of $52,816 for the second quarter of 2004. Subtracting a $37,800 income tax expense deduction, the 2005 second-quarter net income was $113,307. This compares to net income of $40,512 for the same period last year, an increase of 180%.

Total expenses increased 37%, from $1,057,594 in the second quarter of 2004 to $1,446,784 at the end of the current period. The increased expenses were also attributed to the recent acquisitions, along with costs of investor relations and consulting services.

The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $292,567 for the current quarter. This was a 91% increase over the EBITDA of $153,051 for the same period last year.

Year-to-date gross revenue for the six-month period ending June 30, 2005, totaled $2,740,639, compared to $2,177,610 for the same period in 2004, an increase of 26%. Total expenses for the six-month period ending June 2005 were $2,615,881, compared to $2,086,638 for the corresponding period in 2004, an increase of 25%. Total year-to-date net income for the first six months of 2005 was $93,558, compared to $69,129 for the six months ending June 30, 2004, an increase of 35%.

EBITDA for the six months ending June 30, 2005 totaled $377,420, compared to EBITDA of $272,100 for the same period last year, an increase of 38%.

As of June 30, 2005, International Monetary Systems' total assets have increased to $6,913,341 from $4,870,360 at the end of 2004, with stockholders' equity increasing to $3,942,941 from $2,976,382.

Liquidity and Sources of Capital

At the end of the second quarter of 2005, the Company's cash balance had increased to $166,594 from $83,669 at the end of 2004. This was a result of funds raised in several private placements, less the amounts remitted as down payments on the three acquisitions described above.

About International Monetary Systems

Founded in 1989, International Monetary Systems, Ltd.(IMS) serves more than 9,000 customers representing 14,000 cardholders in 32 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 businesses 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 website at: http://www.internationalmonetary.com.

Contact:

International Monetary Systems, Ltd.
Don Mardak
(800) 559-8515

Source: International Monetary Systems, Ltd.