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VENDTEK'S
SUBSIDIARY NOW PREPAY COMBINES FORCES WITH
GO PREPAID TO DISTRIBUTE PREPAID CELLULAR AND
LONG DISTANCE ELECTRONICALLY
February 13, 2003 - VendTek Systems Inc.
(TSX-V: 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 equipped POS terminals.
The
agreement covers the distribution of Verifone
POS terminals incorporating VendTek's cutting
edge e-Fresh 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 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 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,
which is a suite of software applications use
to electronically distribute prepaid telecommunication
products and financial services. Commercialization
of e-Fresh 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 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 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.
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