Now Prepay Inks an Agreement with GPN

Global Payments has certified VendTek’s “e-Fresh Now Prepay” client software on selected Canadian POS terminals and will make the service available to Global Payments’ Canadian customers. By using “Now Prepay,” merchants can offer their customers an extensive selection of prepaid services more easily and efficiently and without the need
to hold or manage a physical inventory of prepaid cards. Additionally, the elimination of large on-site card inventory reduces security risks and out of stock concerns, providing “just in time” availability, thereby increasing merchants’ cash flows and allowing them to only pay for the product they sell, when they sell it.

Vendtek Deploys the First IP-Based POS Terminals

VendTek Systems has deployed what the company believes to be the first IP based POS terminals in operation in Canada selling prepaid services. The use of a high-speed Internet connection to connect with the “Now Prepay” transaction host server allows transactions to complete in less than 10 seconds. Vendtek’s wholly owned subsidiary Now Prepay Corp. has reached 3,500 “e-Fresh” POS terminal clients in Canada.
The Company announced 3,000 terminals less than two months ago. Now Prepay began selling services through POS terminals in December 2002.

Vendtek Seeks $1MM Private Placement for Working Capital

VendTek Systems is conducting non-brokered financing to raise a gross proceeds of up to $1,000,000. Proceeds of the Offering will be used for working capital and business development initiatives. The Company develops and licenses “e-Fresh” software and related technologies, which provides electronic distribution of prepaid telecommunication and financial services. VendTek is commercializing the
“e-Fresh” software under license to create sustainable and recurring revenues. VendTek’s customers and its subsidiaries, Now Prepay Corp. (in Canada) and VendTek Systems Technologies (in China), are using “e-Fresh” software to build electronic, prepaid services networks which enable consumers to purchase prepaid services via POS and self-serve terminals connected to a central “e-Fresh” server.

Keycorp Canada to Offer VendTek’s e-Fresh Software

Keycorp Canada has certified and will offer VendTek’s “e-Fresh” client software on their “K23 Series” of POS terminals. VendTek develops, markets, and sells a
suite of software applications used to electronically distribute prepaid telecommunication products and financial services. Keycorp’s electronic payment terminals include smart card-capable online and offline terminals capable of processing credit, charge, debit and stored value transactions.

Canadian Tire Petroleum Deploys Now Prepay Phone Card Terminals

Canadian Tire Petroleum has inked a deal to install “Now Prepay” POS terminals with “e-Fresh” software in their 221 petroleum bars across the country. The terminals dispense pre-paid electronic phone cards.
To date, Now Prepay has deployed 2,300 “e-Fresh” licensed POS terminal clients in Canada. Now Prepay is a wholly-owned subsidiary of VendTek Systems. Canadian Tire Corporation operates more than 1,000 stores, gas bars and car washes in the country.

E-FRESH CLIENTS

Vancouver-based VendTek Systems has now deployed 1,000 “e-Fresh” clients in POS terminals in retail stores across the country.
In addition to the total retail sites already offering “Now Prepay” services, the Company has already sold an additional 600 client licenses
bringing the committed total client deployment to 1600 in Canada. Each deployed “e-Fresh” client in a retail site connects back to the “Now Prepay” server and creates recurring transaction revenues from the sale of prepaid services. “Now Prepay” began selling the client licenses in November 2002.

FULL STORY:

VendTek Systems Inc., a leading provider of software for
prepaid service distribution, is pleased to announce that it has reached a
milestone in the development of its Now Prepay business. The Company has now
deployed 1000 e- Fresh Clients in POS terminals in retail stores across
Canada.

In addition to the total retail sites already offering Now Prepay
services, the Company has already sold an additional 600 client licenses
bringing the committed total client deployment to 1600 in Canada. Each
deployed e-Fresh(TM) client in a retail site connects back to the Now Prepay
server and creates recurring transaction revenues from the sale of prepaid
services. Now Prepay began selling the client licenses in November 2002.

“This is a tremendous achievement for VendTek and Now Prepay. The growth
rate has been excellent and recent trends indicate we can expect that to
continue. Our customers have shown their approval for our product by the
amount of re-orders that we have received. The feedback has been extremely
positive.” said Paul Brock, President of VendTek Systems Inc.

Now Prepay is joining forces with POS terminal distributors and
transaction processing organizations to integrate VendTek’s e Fresh(TM)
software with debit card and credit card processing software. The combined
applications provide a value added solution to the channels presently served
by physical cards for prepaid telecom services. Given the anticipated future
discontinuation of physical cards by Canadian Cellco’s, VendTek, through Now
Prepay, is poised to capture a significant share of the electronic
distribution of prepaid services market in Canada.

For more information, or to receive news and updates as they become
available, please contact Samantha Haynes at 1-800-806-4958 or 604.940.2239.

About VendTek and Now Prepay (http://www.vendteksys.com / http://www.nowprepay.com)
VendTek Systems Inc. develops and licenses e-Fresh(TM) software and
related technologies, which provides electronic distribution of prepaid
telecommunication and financial services. VendTek is commercializing the e-
Fresh(TM) software under license to create sustainable and recurring revenues.
VendTek’s customers and its subsidiaries, Now Prepay Corp. (in Canada) and
VendTek Systems Technologies (in China), are using e-Fresh(TM) software to
build electronic, prepaid services networks which enable consumers to purchase
prepaid services via POS and self-serve terminals connected to a central e-
Fresh(TM) server. This system creates significant value through improved
efficiencies compared to the traditional distribution paradigm. e-Fresh(TM)
reduces shrinkage and inventory requirements while improving consumer access
to prepaid services since it is completely electronic and eliminates physical
cards and vouchers.

VENDTEK & TIBC 3.0

VendTek’s unattended load terminals for “VISA Cash TIBC 3.0” loading of smart cards and credit/debit associated accounts have complied with VISA International Latin America and Caribbean Region’s requirements. VendTek may now load the latest “TIBC 3.0” or “Advantis” smart cards using cash as well as credit/debit associated accounts in addition to the earlier “TIBC 1.0” products. VendTek Systems also develops and licenses “e-Fresh” software and related technologies, which provides electronic distribution of prepaid telecommunication and financial services.

NOW PREPAY

Vancouver-based VendTek Systems reports that Ontario-based Pioneer Petroleums has launched its “Now Prepay” terminals into service at 65 “Snack Express” stores. Pioneer plans to add 10 more sites immediately and gradually increase the total number of sites during the months to come. The license for the “Now Prepay e-Fresh” software enables Pioneer Petroleums and their customers to connect their POS terminals with “Now Prepay’s e-Fresh” server. This enables POS terminals to provide the re-sale of prepaid long distance and wireless services through the electronic network.

Ontario’s Pioneer Petroleums Deploys Prepaid Terminals

Vancouver-based VendTek Systems announced that Pioneer Petroleums has launched Vendtek’s “Now Prepay” prepaid terminals in 65 Snack Express stores in Ontario. The terminals provide greater access to prepaid products and services in Ontario and enable the Snack Express stores to be a provider of leading edge prepaid product and service options. Pioneer plans to add 10 more sites immediately and gradually increase the total number of sites during the months to come.

E-FRESH SYSTEMS

Wireless Products Marketing Inc. has launched VendTek Systems’
“e-Fresh System” into service and has purchased an additional 100 “e-Fresh”
client licenses. “e-Fresh” is an electronic distribution software for
prepaid telecommunication and financial services. WPM has launched more
than 20 terminals since the system was installed in mid-March. Now WPM has
placed an additional order for more licenses to expand its network and
allow greater electronic distribution using the “e-Fresh” technology.

VENDTEK 2Q/02

VendTek Systems Inc. reported a net loss of $301,000 for the quarter
ending July 31, compared to a net gain o $11,000 for the year ago quarter.
Over the past nine months VendTek’s net loss has increased $173,000 to
$777,000, compared to net loss of $604,000 in 2001. The company says the
loss continues to reflect the lower capital spending by its traditional
customers. Revenues for the past nine mnths were $1,042,000 compared to
$4,209,000 in 2001. VendTek projects over the next 2 quarters that new
licensing revenues from its “e-Fresh” projects to start replacing the
previous legacy product based manufacturing revenues. When realized these
new revenues should mark the successful transition of its business into a
more profitable licensing based model.

E-FRESH KIOSKS

VendTek Systems Inc. announces it has launched a Pilot of e-Fresh™ self-serve kiosks for the
distribution of prepaid wireless phone time in Beijing, China.

The e-Fresh system in China is branded “Yi Tong,” meaning “Easy Through.”
The Pilot consists of the deployment of 5 e-Fresh™ kiosks and is scheduled
to last three months. Each kiosk has Chinese character interface and
exterior graphics. The kiosks currently retail China Mobile prepaid wireless
time. The kiosks are deployed in a variety of locations in Beijing,
including a Department store, a China Mobile wireless phone store, and a
university site. The kiosks are connected via public phone lines to a
VendTek server also located in Beijing. In addition to the distribution of
electronic vouchers, the kiosks distribute traditional prepaid phone cards.

“We believe VendTek and its Chinese partner are the first to offer
electronic pin distribution in China,” says VendTek President, Paul Brock.
“The market potential in China is immense. With our Chinese partner we are
working with China Mobile, which has one of the World’s largest cellular
phone subscriber bases. Noted researcher Gartner Dataquest Asia-Pacific
recently revealed that pre-paid connections in China surged to 66 million in
the fourth quarter of 2001 compared to 12 million in fourth quarter 2000.
Our short term objective is to prove consumer acceptance of the new
distribution paradigm, which could lead to a large scale e-Fresh deployment
in Beijing and other major centers.”

The Company is also in early stage discussions with partners in China for
potential financing and production after the Pilot.

About VendTek and e-Fresh™

VendTek uses its expertise in payment and self-serve technologies, smart
cards and networking to develop systems for transaction automation.
VendTek’s secure proprietary systems reduce shrinkage, improve access for
consumers, increase the number of selling outlets and selling hours, and
enhance overall security making the systems superior to traditional
distribution and alternative channels. VendTek’s e-Freshä System enables
consumers to purchase prepaid services, such as cellular time, via POS and
self-serve terminals connected to a central server.