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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
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(as permitted by Rule 14a-6(e)(2))
|_| Definitive Proxy Statement
|X| Definitive Additional Materials
|_| Soliciting Material Pursuant to ss.240.14a-12
ITEX CORPORATION
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(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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NEWS RELEASE FOR IMMEDIATE RELEASE
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For further information, call:
Arthur Crozier
Peter Walsh
Innisfree M&A Incorporated
(212) 750.5833
ITEX ANNOUNCES RESIGNATION OF DIRECTOR COLLINS CHRISTENSEN
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Former CEO Had Been Terminated For Misconduct
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New York, NY - Jan. 17, 2003 - ITEX Corporation (OTC Bulletin Board:ITEX)
announced the resignation of Collins M. Christensen from the Board of Directors,
effective as of January 10, 2003.
Mr. Christensen served as ITEX's CEO until the board of directors terminated him
on November 5, 2001 for misconduct, including, among other things, misuse of
corporate funds and trade accounts. Christensen was also found to have obligated
ITEX to issue 250,000 shares of ITEX stock to Mr. Steven White in connection
with his retention of Mr. White as a consultant to ITEX without the prior
authorization of the board. Mr. White is leader of the dissident group waging a
proxy contest for control of the ITEX Board at the January 28, 2003 Annual
Meeting.
As disclosed in a Form 8-K recently filed with the SEC, ITEX takes issue with a
number of assertions made by Mr. Christensen in his letter of resignation and
believes the letter to be inaccurate. In particular, Mr. Christensen questioned
the formation of the "Proxy Contest Committee" by the board. Mr. Christensen was
excluded from the committee, which is responsible for conducting the proxy
contest initiated by the dissident group, because, among other things, Mr.
Christensen had indicated an intention to vote for the dissident slate.
Mr.Christensen also claimed that he was excluded from meetings of a previously
formed Special Committee that changed the compensation of the outside board
members. The Special Committee that Mr. Christensen refers to apparently is the
Special Committee formed by the board to investigate Mr. Christensen's various
acts misconduct, and which recommended his termination. It is correct that Mr.
Christensen was excluded from that committee.
In addition, Mr. Christensen claimed the board has an "open checkbook approach"
as it relates to the costs associated with the proxy contest. In fact, ITEX has
made every effort to control and limit the costs related the proxy contest. The
estimate of solicitation expenses set forth in the soliciting material filed by
ITEX on January 14, 2003 reflect those limits, and they are in line with the
solicitation expense estimates provided by the dissident group.
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