Itex Corporation, et al.

On September 27, 1999, the SEC filed a complaint alleging that Itex, a publicly-traded barter exchange company, and five individuals materially inflated Itex’s revenues and earnings in financial statements filed with the SEC and in other disclosures made to the investing public. The SEC alleged that Itex made materially false and misleading disclosures about the company’s business and failed to disclose numerous suspect, and in many cases sham, barter deals between Itex and various mysterious offshore entities related to and/or controlled by Terry Neal, Itex’s founder and control person. All of the defendants have settled with the SEC, consenting to permanent injunctions. The SEC has collected and has available for distribution approximately $598,000 in disgorgement, plus interest. You can find more information about the SEC’s action by reviewing our litigation releases.

On June 24, 2004, the Court appointed Michael A. Grassmueck, Inc. as Receiver for the purpose of distributing disgorged funds and accrued interest, less expenses and fees, to Itex investors injured by the fraud. You can obtain further information by visiting the Receiver’s website or by calling the Receiver at (503) 294-1018.

http://www.sec.gov/divisions/enforce/claims/itex.htm