Datawave and Best Buy Canada Ltd. to Offer Prepaid Telephone Cards, to be Available at Both Future Shop and Best Buy Stores in Canada


VANCOUVER, British Columbia, Sept. 19, 2003 (PRIMEZONE) -- DataWave Systems Inc. (TSX Venture Exchange:DTV) (OTCBB:DWVSF) is pleased to announce that it has commenced sales of prepaid telephone cards at Future Shop and Best Buy Stores under an agreement that makes DataWave the exclusive supplier of Point-of-Sale Activation (POSA) technology for long distance phone card products in all 107 Future Shop stores along with all 15 existing Best Buy stores in Canada.

"Future Shop and Best Buy Canada join the list of major national retailers who have selected the DataWave system as the Point-Of-Sale-Activation solution for their stores," said Martin Luckwell, Director of Sales, Western Canada. "This contract sees us connecting several hundred more cash registers to the DataWave POSA delivery system, and along with the over 1,600 counter top terminals DataWave already has in place, further demonstrates our status as the dominant provider of POSA technology in Canada."

The proprietary POSA technology of the DataWave System generates significant cost savings to retailers by completely eliminating both inventory carrying costs and shrinkage. The DataWave POSA System is accessible through small free-standing terminals or may be incorporated into the cash register system of most major retail chains.

About Best Buy Canada Ltd.

Burnaby, BC based Best Buy Canada Ltd., a wholly owned subsidiary of Best Buy Co., Inc. (NYSE:BBY) (Minneapolis, MN), is responsible for the operation of both Future Shop and Best Buy stores in Canada. There are currently more than 11,000 employees dedicated to serving the 107 Future Shop and 15 Best Buy stores across the country.

About DataWave (www.datawave.ca)

DataWave has been an innovator and developer of prepaid and stored-value programs since it was founded in 1994. DataWave pioneered a system that allows for point-of-sale activation of high value, high shrinkage products, such as cash cards and phone cards. The System works equally well over the Internet, through intelligent free-standing vending machines or with various card activation devices, including cash registers.



 DataWave Systems Inc.

 John Gunn
 General Manager and CFO

Legal Notice Regarding Forward-Looking Statements:

Statements in this news release which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this release include, but are not limited, references to: several hundred more cash registers connecting to the DataWave system, and that the DataWave system generates significant cost savings to retailers.

It is important to note that the company's actual results and outcomes may differ materially from those contained in the forward-looking statements contained in this release. Factors that could cause actual results to differ materially include, but are not limited to, our ability to perform our obligations under the agreement, and our system maintaining competitive pricing and service.

Although we believe that the beliefs, plans, expectations and intentions contained in this letter are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Readers should refer to the risk disclosures outlined in our annual report on Form 10-KSB for the year ended March 31, 2003, filed with the United States Securities and Exchange Commission.

"DataWave" is a registered trademark of the Company. All other trademarks and trade names referred to are the property of their respective owners.

"The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release."



            

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