VANCOUVER. B.C., April 3, 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 VendTek and its subsidiary, Now Prepay Corp. ("Now Prepay"), have entered into a Memorandum of Understanding ("MOU") with Collective Logic Inc. and its wholly owned subsidiary Collective Point of Sale Solutions Ltd. (together, "Collective").
The MOU lays out the terms of a future agreement whereby Collective will market the e-Fresh( POS terminal software to its existing terminal base and to new terminals. Collective has the ability to remotely deliver the e-Fresh(tm) application to all its existing terminals and is currently testing the e-Fresh( POS terminal software at a number of its sites across Canada.
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(tm) terminals benefit from improved convenience and product selection.
Collective Logic President, Michael Back remarked, "We are looking forward to adding the e-Fresh(tm) software to our existing suite of merchant services. Equipping merchants with the ability to deliver prepaid cellular and long distance airtime over their existing POS terminals adds tremendous value."
Now Prepay President, Doug Buchanan commented, "Collective is one of the most respected independent merchant services providers in Canada. We are pleased to begin our relationship with them and look forward to a beneficial working relationship."
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. Visit our new website www.vendteksys.com
For more information, or to receive news and updates as they become available, please contact Samantha Haynes at 604.940.2239.
About VendTek
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 Collective Logic and CollectivePOS
Based in Toronto, Ontario, Collective Logic (www.collectivelogic.com) is a leading supplier to the merchant services industry. Collective Logic works in association with banks and other major financial institutions to provide merchant services, transaction processing and point of sale equipment to merchant service providers (MSP's) and independent sales organizations (ISO's) across Canada. It's wholly owned subsidiary, Collective Point of Sale Solutions (www.collectivepos.com), has emerged as one of Canada's leading merchant service providers with thousands of satisfied customers from coast to coast. For further information, contact the company directly at 1-800-219-7119.
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