International Monetary Systems Files Second-Quarter Report

Revenue Increases 89%, Cash Flow up 122%

New Berlin, Wis., August 15, 2007 -- International Monetary Systems, Ltd. (OTCBB:INLM), a worldwide leader in business-to-business barter services, has filed its second quarter report on Form 10-QSB.

During this period, IMS once again recorded substantial trade volume and revenue growth. The company converted $200,000 of its debt to equity and continued the commitment to its recently implemented "Best Practices" program. In an effort to increase organic growth, the firm also expanded its outside sales force and spent substantial funds on new state-of-the art equipment, website development, and an expanded workforce. Although 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, 2007, IMS processed more than $27 million in trade transactions, which generated gross revenues of $3,420,662, compared to revenue of $1,810,654 in the second quarter of 2006, an increase of 89%.

Total expenses increased 104%, from $1,722,046 in the second quarter of 2006 to $3,507,521 in the current period. The increased expenses are attributable to the costs of integrating two trade exchange acquisitions, higher non-cash charges for amortization of membership lists and the hiring of additional salespeople. The expanded sales force produced more than 800 new clients during the quarter.

The company also received a sizeable deferred tax benefit, representing the adjustment to the deferred tax liability, which arises from the differences in basis of acquired membership lists for financial reporting versus tax reporting. In spite of the record revenues, the company had a net loss, before the income tax benefit, of $150,915 during the second quarter of 2007, compared to a net income, before taxes, of $21,518 in the same period of 2006. After adjustments for taxes, the net loss for the current quarter was $64,090, compared to a net loss of $46,482 last year.

Year-to-date gross revenue for the six-months ended June 30, 2007 totaled $6,721,671, compared to $3,552,990 for the same period in 2006, an increase of 89%. Total expenses for the six months ending on June 30, 2007 were $6,857,187, compared to $3,435,649 for the corresponding period in 2006, an increase of 100%. Total year-to-date net loss, before the income tax benefit, for the first six months of 2007 was $307,439, compared to a loss, before taxes, of $22,597 for the six months ended June 30, 2006. After tax adjustments, the net losses for six months were $127,362 for 2007 versus $68,597 for 2006.

Year-to-date operating profit or EBITDA (earnings before interest, taxes, depreciation and amortization) totaled $597,763, an increase of 20% over the $498,513 reported for the same period last year.

For the six months ended June 30, 2007, the company had positive cash flow provided by operating activities of $621,582, compared to just $279,525 for the same period of 2006, an increase of 122%. As of June 30, 2007, International Monetary Systems' total assets have increased to $18,117,110 from $15,203,887 at the end of 2006, with stockholders' equity increasing to $8,774,976 from $7,779,357.

At the end of the second quarter of 2007, the company's cash balance had increased to $1,419,409 from $930,962 at the end of 2006.

About International Monetary Systems

Founded in 1985, International Monetary Systems (IMS) serves more than 16,400 customers representing 24,000 cardholders in 44 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.
John Strabley, 800-559-8515
http://www.internationalmonetary.com

Source: International Monetary Systems, Ltd.