VANCOUVER. B.C., March 18, 2003 (PRIMEZONE) -- VendTek Systems Inc. (TSX Venture Exchange:VSI) ("VendTek" or "The Company"), a leading provider of automated transaction technology, is pleased to announce that its subsidiary Now Prepay Corp. ("Now Prepay") has received an order for 100 POS terminals and licenses from Go Prepaid Inc. ("Go Prepaid").
Recently, Now Prepay and Go Prepaid entered an agreement for the distribution of POS terminals incorporating VendTek's e-Fresh(tm) electronic distribution technology. Go Prepaid deployed 12 terminals to the first of its more than 500 clients in the initial launch.
This order represents a rapid integration of new installs as Go Prepaid's clients are adopting the new technology and are incorporating the new terminals into their business. Ease of use and minimal space requirements are a major component of the user friendliness.
"We felt confident that Go Prepaid's customers would enjoy the benefits offered by the electronic distribution of prepaid services. It's a natural evolution of the physical voucher to move to electronic format, and if one or two of the many benefits are obvious to the retailer, the adoption time is minimal," commented Doug Buchanan, President of Now Prepay Corp.
The e-Fresh(tm) enabled POS terminals distribute prepaid cellular airtime and long distance from Canada's national service providers. The electronic inventory is stored on a central server and distribution is through a secure network. The usage is similar to paying by a debit card where a keypad is used to select airtime minutes or dollar values. A receipt is printed containing a unique PIN number that is then dialed into a cell phone or telephone. The PIN number is downloaded in real time, is single use, and doesn't need to be inventoried by the retailer. Consumers using e-Fresh terminals benefit from improved convenience and product selection.
In Canada, the market for cellular phone time recharges is expected to reach $800 million annually by 2004. Similarly, the market for prepaid long distance is expected to increase to $500 million by 2004. According to the Canadian Wireless Telecommunications Association there are 10.5 million Canadian cellular subscribers of which 2.6 million are prepaid users.
For more information, or to receive news and updates as they become available, please contact Samantha Haynes at 604.940.2239.
About VendTek and Now Prepay (www.vendteksys.com / www.nowprepay.com)
VendTek Systems Inc. develops, markets, and sells e-Fresh(tm), which is a suite of software applications use to electronically distribute prepaid telecommunication products and financial services. Commercialization of e-Fresh(tm) under license is VendTek's strategy to create sustainable and recurring revenues.
VendTek's customers and its subsidiaries, Now Prepay Corp. and VendTek Systems Technologies (Beijing), 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 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. About Go Prepaid (www.goprepaid.com)
Go Prepaid has been specializing in prepaid card distribution services since 1994. The company provides a full range of prepaid card solutions including long distance, payphone, wireless and Internet services. The company owns a network of vending machines in high traffic business travel and consumer locations including airports and tourist zones. Go Prepaid also supplies an extensive list of key retail distribution partners.
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Company assumes no obligation to update any forward-looking information contained in this news release.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.