VANCOUVER, B.C., Feb. 11, 2003 (PRIMEZONE) -- VendTek Systems Inc. (TSX Ventrure Exchange:VSI) (Other OTC:VNDKF) ("VendTek" or "The Company"), a leading provider of automated transaction technology, is pleased to announce the launch of its "nowprepay.com" website and an update to shareholders about the "Now Prepay" mission.
Now Prepay Corp. ("Now Prepay") is a wholly owned subsidiary of VendTek and was specifically created to pursue the burgeoning prepaid telecom market in Canada.
According to the Canadian Wireless Telecommunications Association there are just over 10 million Canadian cellular subscribers of which there are approximately 2.6 million prepaid users. These numbers are forecasted to grow to 16 million Canadian cellular subscribers and 5 million prepaid users by 2004. The Canadian market for cellular phone time recharges is expected to reach $800 million annually by 2004. Likewise, the market for prepaid long distance is expected to increase to $500 million by 2004.
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 will provide a value added application to the channels presently served by physical cards for prepaid telecom services. Given the anticipated future discontinuation of costly 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.
Now Prepay has agreements with most major Canadian telecommunications companies including Bell Mobility, Fido, Rogers AT&T Wireless, and Telus Mobility to distribute the electronic PINs that are convertible to prepaid telecom services such as cellular airtime and long distance. The company believes there are only a few companies in Canada who have these agreements in place and Now Prepay is proud to be one of them.
Now Prepay President, Doug Buchanan, said; "Now Prepay is VendTek's e-Fresh showcase. Now Prepay is working with all potential sales channels to provide our e-Fresh enabled POS terminals throughout the supply chain. We anticipate the majority of retailers will adopt electronic delivery of prepaid and other services, as it will cut down on cost, theft, damage and ultimately enable them to increase their margins for selling these services. Our slogan is "Don't delay, 'Now' is the way to pay."
About VendTek
VendTek Systems Inc. engineers, markets and sells e-Fresh(tm), which is an electronic distribution software for prepaid telecommunication 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.
For more information, or to receive news and updates as they become available, please contact Samantha Haynes at 604.940.2239.
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.