Toronto, May 15, 2008 – Advantex Marketing International Inc. (TSX:ADX), a leading specialist in merchant funding and loyalty marketing programs, today announced its results for the fiscal third quarter and nine months ended March 31, 2008. All references to quarters or years are for the fiscal periods and all currency amounts are in Canadian dollars unless otherwise noted.

"The Company continues to evolve into a stronger and more competitive company, with a clear focus on profitable growth in the programs and areas in which it enjoys a leadership position”, said Mr. Kelly E. Ambrose, President and Chief Executive Officer.

For the three months ended March 31, which period is historically the weakest trading quarter, Company’s Contribution from Operations for the three months ended March 31, 2008 was $112,000 compared with a loss of $33,000 at the Contribution from Operations level in the corresponding period of the previous year. The Company achieved a modest Profit before Interest during the current quarter of $17,000 compared with a loss of $110,000 for the corresponding period of the previous year.

Financial Performance – Highlights

(millions of $s)

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                                                         Three months    Three months    Nine months     Nine months 

                                                         Ended           Ended           Ended           Ended

                                                         March 31,       March 31        March 31,       March 31,

                                                         2008            2007            2008            2007

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Revenue                                                  2.5             2.7             8.6             8.4

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Gross profit                                             1.8             1.9             5.3             5.6

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Gross Margin                                            70.5%           69.8%           61.2%           66.7%

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Contribution from operations                             0.1             0.0             0.1             0.3

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Profit / (Loss) before 

 amortization and interest                               0.1            (0.1)            0.0            (0.9)

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Amortization                                             0.1             0.1             0.2             0.2                                         -------------------------------------------------------------------------------------------------------------------

Interest                                                 0.4             0.2             0.9             0.6                                     -------------------------------------------------------------------------------------------------------------------

Net (Loss)                                              (0.4)           (0.4)           (1.1)           (1.7)

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The Company implemented several successful initiatives during the three months ended March 31, 2008:

(1)        Following the closing of debt financings in late December, 2007 and January, 2008, the Company had access to $4.2 million of funds to grow the CIBC Advantex Advance Purchase Marketing (APM) program. During the three months ended March 31, 2008 the Company focused on enrolling and activating the backlog of merchants waiting to enroll in its (APM) program, a process that took the better part of this quarter. As of March 31, 2008 the Company had deployed $4.2 million of funds as initial advances to new merchants, however the lag between the access to funds and enrolling / activation process means that the full impact of funds deployed in the quarter is only partially evident in the CIBC Advantex APM program revenues of the three months ended March 31, 2008.

(2)        Manpower and SG&A savings have been identified. Measures implemented from mid –March, 2008 onwards; will be realized partially during the last quarter of current year, and fully by first quarter of fiscal 2009, and which will save the Company approximately $650,000 over 12 months starting April, 2008.

(3)        Online revenues for three months ended March 31, 2008 are up 17.4% compared with the corresponding period of the previous year when expressed in USD terms, the currency in which the Company earns its revenues

(4)       New complementary revenue opportunities:

   (a)        In partnership with CIBC, Advantex is launching a Hotel program targeted towards select high income credit cardholders. The program markets the participating hotels to select CIBC cardholders, and entitles cardholders to special privileges at participating hotels. Advantex will earn a fee for the marketing services provided to participating hotels. The initial response to roll out of this program has been encouraging.

   (b)        Advantex acts as the exclusive Canadian-based agent across Canada to sell and market, to small and mid-sized businesses, the working-capital financing programs offered by Rapid Advance, a company based in Bethesda, Maryland. After set up of administrative processes during the current quarter, Advantex has begun marketing the service, and the response from merchants has been positive. Advantex earns a fee for marketing the service in Canada, and does not have exposure to delinquent accounts.

The CIBC Advantex program revenues for the three months ended March 31, 2008 were $1.9 million compared with $2.1 million for the corresponding period of the previous year. The Company’s APM program accounted for $1.2 million of the three months ended March 31, 2008 revenue, $0.5 million lower than corresponding period of the previous year, while the Marketing Only program accounted for $0.7 million, $0.3 million higher than corresponding period previous year. During the past periods the Company moved existing merchants either to a Marketing Only program or into its APM program which provides merchants with larger advances. This realignment has resulted in two very distinct programs with more of the existing merchants in the Marketing Only program. During the current quarter the Company enrolled and activated the backlog of merchants waiting to enroll in its Advance Purchase Marketing (APM) program, a process that took the better part of the current quarter, consequently the full impact of the funds deployed in the CIBC Advantex APM program are not realized in the revenue of the three months ended March 31, 2008. The Company continues to drive its Marketing Only program and revenues for this model for the three months ended March 31, 2008 are up 105% compared with the corresponding period of the previous year.

Online revenue for the three months ended March 31, 2008 achieved growth of 17.4% compared with corresponding period in the previous year when expressed in US dollars, the currency in which the Company earns its revenue but was up 2.6% when reported in Canadian Dollars in the consolidated financial statements, a reflection of the strengthening of the Canadian Dollar vs. US Dollar. The growth is mainly attributable to the increased awards promotions offered by the Company to online shoppers. 

The Net Loss for the three and nine months ended March 31, 2008 is $390,000 and $1,086,000 respectively compared with $359,000 and $1,702,000 respectively for the corresponding periods of the previous year. For the three months ended March 31, 2008, the increase in interest expense resulting from the new debt financings and the impact from marginally lower revenues ($182,000), a reflection of the merchant enrolling and activation process explained in earlier paragraph, on the Net Loss , was partially offset by lower SG&A ($255,000). 

About Advantex Marketing International Inc.

Advantex is a specialist in the marketing services industry, managing white-labeled rewards accelerator programs for major affinity groups through which their members earn bonus frequent flyer miles and/or other rewards on purchases at participating merchants. Under the umbrella of each program, Advantex provides merchants with marketing, customer incentives, and secured future sales through its Advance Purchase Marketing model. Advantex partners include more than 700 restaurants, online retailers, golf courses, small inns and resorts, and major organizations, including CIBC, United Airlines, Delta Airlines, Alaska Airlines, and Lufthansa Airlines. Advantex is traded on the Toronto Stock Exchange under the symbol "ADX".  For additional information on Advantex, please visit www.advantex.com.

This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding financial and business prospects and financial outlook) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks, uncertainties and assumptions that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in general economic and market conditions, changes to regulations affecting the Company's activities , uncertainties relating to the availability and costs of financing needed in the future, and delays in finalizing retail contract with CIBC. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. 

- 30 -

For further information please contact:

Mukesh Sabharwal

Vice-President and Chief Financial Officer

Tel: (416) 481-5657, ext. 249

E-mail: Mukesh.sabharwal@advantex.com

ADVANTEX MARKETING INTERNATIONAL INC.

CONSOLIDATED FINANCIAL STATEMENTS

For the three month and nine month period

Ended March 31, 2008

The accompanying consolidated financial statements have been prepared by management and approved by the Board of Directors of the Company. Management is responsible for the information and representations contained in these consolidated financial statements and other sections of this report.

An auditor has not performed a review of these financial statements.

ADVANTEX MARKETING INTERNATIONAL INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

                                                                                               MARCH 31, 2008                       JUNE 30, 2007

                                                                                                              $                                               $

ASSETS

Current:

   Cash and cash equivalents                                                           762,578                                     910,995

   Accounts receivable                                                                      969,908                                     737,485

   Transaction credits                                                                     7,361,968                                  5,390,412

   Prepaid expenses and sundry assets                                            110,474                                     185,955

                                                                                                        9,204,928                                  7,224,847

Long-term:

  Property, plant and equipment and other assets                           913,920                                     775,733

TOTAL ASSETS                                                                             10,118,848                                 8,000,580

LIABILITIES

Current:

   Loan payable (note 5)                                                                   546,353                                           -

   Accounts payable and accrued liabilities                                    3,598,063                                  3,707,243

                                                                                                         4,144,416                                  3,707,243

Long-term:

   Other liabilities                                                                                265,955                                    450,856

   Non-convertible debenture payable (note 6)                              2,419,907                                          -

   Convertible debenture payable                                                    4,340,877                                 4,042,335

                                                                                                          7,026,739                                 4,493,191

                                                                                                        11,171,155                                8,200,434 SHAREHOLDERS’ (DEFICIENCY)

Capital Stock                                                                

   Class A preference shares                                                                    3,815                                        3,815

   Common shares                                                                           24,106,281                              24,106,281

                                                                                                         24,110,096                             24,110,096           

Contributed surplus                                                                              460,823                                   412,223

Equity portion of debentures (note 7)                                              2,299,085                               2,114,341

 Deficit                                                                                            (27,922,311)                         (26,836,514)

                                                                                                          (1,052,307)                              (199,854)          

TOTAL LIABILITIES AND                                                                10,118,848                               8,000,580

   SHAREHOLDERS’ (DEFICIENCY)                                                                                                                    

(see accompanying notes)

ADVANTEX MARKETING INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF LOSS

(unaudited)

                                                                                                    Three Months Ended                  Nine Months Ended   

                                                                                                             March 31                                    March 31

                                                                                                     2008               2007                  2008            2007 

                                                                                                         $                    $                          $                  $

REVENUE                                                                            2,510,016      2,692,237             8,591,543     8,369,354             

   Direct expenses                                                              740,052         812,668              3,332,101    2,787,194

GROSS PROFIT                                                                   1,769,964      1,879,569             5,259,442     5,582,160

OPERATING EXPENSES

   Selling and marketing                                                        692,883          941,359             2,279,884     2,546,369

   General and administrative                                               965,401          971,538             2,885,238     2,739,262

                                                                                             1,658,284       1,912,897            5,165,122     5,285,631

CONTRIBUTION FROM OPERATIONS                                   111,680          (33,328)                94,320         296,529

   Re-structuring costs                                                                     -                       -                           -           1,026,156

   Stock-based compensation                                                   16,200            16,200                   48,600        152,575

PROFIT/(LOSS) BEFORE AMORTIZATION                             95,480          (49,528)                  45,720      (882,202)

   Amortization of property, plant and equipment                    78,929            60,192                 198,981       175,099

PROFIT/(LOSS) BEFORE INTEREST                                        16,551        (109,720)             (153,261) (1,057,301)

    Interest expense

           Loan payable, and non convertible debenture           119,020              -                      129,182             -

            Stated interest on convertible debenture                  149,589       154,416                467,863        380,512

            Accretion charge on convertible debenture and                                                               

                amortization of deferred financing charges           137,760         94,484                335,491        264,300              

NET (LOSS) AND COMPREHENSIVE LOSS                                                                                                                                 

FOR THE PERIOD                                                                  (389,818)      (358,620)         (1,085,797)   (1,702,113)

NET (LOSS) PER COMMON SHARE                                           (0.01)            (0.01)                    (0.02)            (0.02)

                                                                                                                                                        (see accompanying notes)

ADVANTEX MARKETING INTERNATIONAL INC.

CONSOLIDATED STATEMENT OF DEFICIT

(unaudited)

                                                                                         Three Months Ended                         Nine Months Ended

                                                                                                  March 31                                            March 31

                                                                                          2008               2007                            2008                2007

                                                                                             $                     $                                   $                       $

BALANCE AT THE START OF PERIOD                (27,532,493)     (25,585,706)            (26,836,514)      (24,242,213)

Net (loss) for the Period                                        (389,818)          (358,620)              (1,085,797)        (1,702,113)

BALANCE AT THE END OF PERIOD                   (27,922,311)     (25,944,326)             (27,922,311)    (25,944,326)          

                                                                                                                                (see accompanying notes)

ADVANTEX MARKETING INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

                                                                                                               Three Months Ended         Nine Months Ended

                                                                                                                        March 31                         March 31       

                                                                                                               2008              2007           2008              2007

                                                                                                                  $                    $                $                    $

OPERATING ACTIVITIES

   Net loss for the period                                                (389,818)    (359,620)  (1,085,797)   (1,703,113)            

Items not affecting cash

    Amortization of property, plant and equipment                            78,929          60,192         198,981          175,099

    Accretion charge on convertible debenture                                   94,872         74,234         249,871         195,522

   Amortization of deferred financing charges                                    42,888         20,250           85,620           68,778

    Stock-based compensation                                                            16,200        16,200            48,600         152,575

                                                                                                    (156,929)   (188,744)     (502,725)    (1,111,139)

Changes in non-cash working capital items

    Accounts receivable                                                                      419,502           806,278             (232,441)        111,316

    Transaction credits                                                                   (1,948,722)             5,599           (1,971,556)    (2,215,904)

    Prepaid expenses and sundry assets                                           (12,680)            10,036               75,481            32,179

    Accounts payable and accrued liabilities                                     (389,377)          (282,748)          (109,163)          29,112

                                                                                                     (1,931,277)          539,165         (2,237,679)    (2,043,297)

Decrease in Long-term other liabilities                                                 (6,700)           (68,099)          (184,900)         500,921

Cash utilized in operating activities                                               (2,094,906)          282,322        (2,925,304)     (2,653,515)

FINANCING ACTIVITIES

   Proceeds from convertible debenture, net                      -                 (39,781)                 -               1,619,944

   Proceeds from non-convertible debenture, net            662,557             -                     2,582,557            -

   Proceeds from draw of credit facility                                              3,720             -                           710,210            -

   Credit facility fees                                                                         (1,383)            -                         (178,713)          -

                                                                                                     664,894         (39,781)            3,114,054           1,619,944

INVESTING ACTIVITIES

    Purchase of property, plant and equipment                                (67,252)        (56,645)              (337,167)      (256,309)

MOVEMENT IN CASH AND CASH EQUIVALENTS                            (1,497,264)        185,896              (148,417)     (1,289,880)

 DURING THE PERIOD                                                                    

Cash and cash equivalents at the beginning of the period          2,259,842        331,266                 910,995       1,807,042

CASH AND CASH EQUIVALENTS AT END OF PERIOD                        762,578        517,162                 762,578      517,162                

ADDITIONAL INFORMATION

    Interest paid                                                                           114,237            -                        414,237         295,357               

                                                                                                                                (see accompanying notes)