International Monetary Systems Files Second-Quarter Report

Revenue and Operating Profit (EBITDA) Increase

New Berlin, Wis., August 15, 2006 -- International Monetary Systems, Ltd. (OTCBB:INLM), a worldwide leader in business-to-business barter services, announced today that it has filed its Form 10-QSB report for the second quarter.

Following the pattern established in the first quarter, the constructive steps taken by International Monetary Systems in 2005 continued to provide positive results in the second quarter of 2006. During this period the Company received equity investments totaling more than $4 million. Some of these funds were used to reduce outstanding debt and to acquire the assets and clients lists of four small trade exchanges. The firm also made a substantial commitment to increasing the membership organically by strengthening its sales force and establishing a telemarketing department. Though this investment in infrastructure affects the bottom line, IMS management believes it is in the Company's best interest to spend funds now that will produce significant future growth.

During the quarter ended June 30, 2006, IMS processed more than $14 million in trade transactions, which generated gross revenues of $1,810,654, compared to $1,596,594 in the second quarter of 2005, an increase of 13%.

In the second quarter of 2006, the barter division operating subsidiary had net income of $107,000, compared to $274,000 generated during the same period in 2005. In the current period, the parent holding company had additional expenses for accounting, interest and non-cash deductions which reduced the net income to $21,518 before taxes. The pre-tax net income for the second quarter of 2005 totaled $151,107. Subtracting interest expense and the provision for income taxes, the second-quarter of 2006 shows a loss of $46,482 compared to net income of $113,307 for the same period last year.

Total expenses increased 23%, from $1,398,551 in the second quarter of 2005 to $1,722,046 in the current period. The increased expenses are attributable to the recent acquisitions and the hiring of new salespeople, along with significantly higher non-cash charges for amortization of membership lists, and beneficial interest charges on recent funding.

The Company's earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $299,835 for the current quarter, compared to EBITDA of $293,069 generated during the same period last year.

Year-to-date gross revenue for the six-months ended June 30, 2006 totaled $3,552,990, compared to $2,738,976 for the same period in 2005, an increase of 30%. Total expenses for the six-month period ended June 2006 were $3,435,649, compared to $2,531,812 for the corresponding period in 2005, an increase of 36%. Total year-to-date net loss for the first six months of 2006 was $68,597, compared to a profit of $96,558 for the six months ended June 30, 2005.

EBITDA for the six months ended June 30, 2006 totaled $498,513, compared to EBITDA of $380,420 for the same period last year, an increase of 31%. For the six months ended June 30, 2006, the Company has had positive cash flow provided by operating activities of $279,525.

As of June 30, 2006, International Monetary Systems' total assets have increased to $11,333,646 from $7,937,986 at the end of 2005, with stockholders' equity increasing to $6,629,554 from $2,084,599. The increase in assets and stockholders' equity are primarily the result of the equity investments described above, and of the reduction in liabilities for common stock subject to guarantees.

At the end of the second quarter of 2006, the Company's cash balance had increased to $3,152,804 from $80,496 at the end of 2005. This, too, was in part due to the $4,045,000 raised in the private placements, less the year-to-date reduction of debt in the amount of $946,344 and $640,000 remitted as down payments on the four trade-exchange acquisitions. These funds will be used to make future acquisitions of additional trade exchanges.

About International Monetary Systems

Founded in 1989, International Monetary Systems (IMS) serves more than 10,000 customers representing 15,000 cardholders in 37 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 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.