VANCOUVER, B.C., March 14, 2003 (PRIMEZONE)-- VendTek Systems Inc. (TSX:VSI) ("VendTek" or "The Company"), a leading provider of automated transaction technology, is pleased to announce that it has sold e-Fresh(tm) software suite licenses and client licenses to Wireless Products Marketing Inc. ("WPM") based in Bloomington, Minnesota U.S.A. The software developed by VendTek will be used by WPM to sell prepaid services to its customers using e-Fresh(tm) POS client software in WPM's network of Verifone POS terminals. The initial sale incorporated licenses and as more are purchased, additional licensing revenues will be generated for VendTek. This sale represents the commencing of VendTek's entry into the US market.
Paul Brock, VendTek President, said; "The electronic prepaid paradigm is just starting to gain momentum in the US market. We look forward to partnering with WPM and others to deploy e-Fresh(tm) as the software solution of choice for POS terminal distributors looking to capture electronic prepaid market share."
Brian Partridge, CEO of Wireless Products Marketing Inc. states, "Our initial marketing plan was to develop a distribution network of sub-agents to sell prepaid phones and prepaid replenishment cards. VendTek has offered us a solution to integrate our backend distribution software with a very economic e-pin delivery system to our sub-agent network, which will now incorporate long distance cards. We now have the capacity, technology and the POS merchandising solution to offer regional distributors, large and small, a totally automated solution."
According to Atlantic-ACM, the prepaid wireless segment will remain a hot spot in the US telecommunications industry for the next few years since more than a third of consumers who apply for wireless telephones are declined because of bad or nonexistent credit and rely on prepaid alternatives for their cellular airtime.
The estimated market in the US for prepaid wireless is US$4.4 billion in 2003 growing to US$10.0 billion by 2007 according to Atlantic-ACM. Visit VendTek's new website www.vendteksys.com for additional information. 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. 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.
About Wireless Products Marketing
Wireless Products Marketing Inc. ("WPM") is a Bloomington, Minnesota based corporation founded in 1997. WPM distributes to convenience stores, specialty retailers, mass merchandisers, and provides electronic pin infrastructure for other distributors. In 2002, WPM activated 20,000 customers for Verizon in the Memphis / St. Paul area and generated over $3.5 million in sales revenue. For further information, please contact the company directly at 952-346-1000.
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.
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