International Monetary Systems Reports 1st Quarter Results

Revenue Increases 53%, Operating Profit Up 135%

New Berlin, Wis., May 16, 2006 -- International Monetary Systems, Ltd. (OTC BB:INLM.OB), a worldwide leader in business-to-business barter services, today announced that it has filed its first quarter 10-QSB report.

The constructive steps taken by IMS in 2005 continued to provide positive results in the first quarter of 2006.

During the quarter ended March 31, 2006, gross revenue increased 53% to $1,742,338, compared to $1,142,383 for the first quarter of 2005. In the first quarter of 2006, the Continental Trade Exchange (CTE) barter business had a profit of $77,000, compared to $31,600 in the same period of 2005, an increase of $45,400, or 144%. CTE processed $12,109,943 in barter transactions (representing sales only), an increase of 47% over the first quarter of 2005. However, the first quarter of 2005 does not include the revenues and expenses of the five companies acquired after March 31, 2005, which increased our client base over 45%.

Additional expenses for the parent holding company produced a net loss of $22,116 for the first quarter of 2006, compared to a net loss of $19,749 for the first quarter of 2005.

Total expenses increased from $1,133,260 in the first quarter of 2005 to $1,713,603 for the period ended March 31, 2006, primarily because of additional overhead costs from the five acquisitions in 2005, expenses of expanding our outside sales force, and higher interest charges for funding obtained during the past fifteen months.

For the three months ended March 31, 2006, net cash provided by operating activities totaled $235,556, compared to $70,015 for the first quarter of 2005. This represents an increase of 236%. Operating profit or EBITDA -- earnings before interest, taxes, depreciation and amortization -- totaled $198,677 compared to $84,342 for the first quarter of 2005, an increase of 135%.

During the first quarter of 2006, the Company's cash balance grew to $176,115 from $80,496 on December 31, 2005. Total assets were $7,611,315 and total liabilities were $5,360,198, creating stockholder equity of $2,251,117.

As subsequent events, in April and May of 2006 the Company received a total of $4,000,000 in equity investments through two private placements from institutional investors. These funds will substantially increase the total assets and book value of the company.

To read the full report, refer to the Form 10-QSB that has been filed with the U.S. Securities and Exchange Commission at www.sec.gov.

About International Monetary Systems

Founded in 1989, International Monetary Systems (IMS) serves more than 9,700 customers representing 14,000 cardholders in 35 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 International Reciprocal Trade Association (IRTA). Further information can be obtained at the company's Web site at: www.internationalmonetary.com.

Contact:

International Monetary Systems, Ltd.
New Berlin, WI
John Strabley
800-559-8515 http://www.internationalmonetary.com

Source: International Monetary Systems, Ltd.