VANCOUVER, B.C., Feb. 13, 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 entered into an agreement with Go Prepaid Inc. ("Go Prepaid") to distribute prepaid cellular and long distance airtime through e-Fresh(tm) equipped POS terminals.
The agreement covers the distribution of Verifone POS terminals incorporating VendTek's cutting edge e-Fresh(tm) electronic distribution technology. Go Prepaid deployed 12 terminals to the first of its more than 500 clients in the initial launch. The Company anticipates a steady rate of new installs as Go Prepaid's clients adopt the new technology and integrate new terminals. 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.
Go Prepaid Inc. President, George DeMarchi remarked, "We could see that the physical card form of prepaid services, which was 100% of our business, is in the mode of planned obsolescence. Going electronic is so much simpler and easier for retailers and consumers and I believe will be quickly adopted as the preferred method of purchasing. VendTek's e-Fresh(tm) is the best product for electronic delivery that we have come across and will enable us to remain competitive in a market going through transition."
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.
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.
For more information, or to receive news and updates as they become available, please contact Samantha Haynes at 604.940.2239.
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.