PIONEER PETROLEUMS GOES LIVE WITH NOW PREPAY TERMINALS

July 7, 2003 - VendTek Systems Inc. (TSX-V: VSI) ("VendTek" or "The Company"), a leading provider of automated transaction technology, is pleased to announce that Pioneer Petroleums ("Pioneer") has launched its Now Prepay terminals into service.

65 Snack Express stores have a Now Prepay e-Fresh software enabled POS terminal installed for the electronic distribution of cellular, long-distance and Internet prepaid products. The terminals provide greater access to prepaid products and services in Ontario and enable the Snack Express stores to be a provider of leading edge prepaid product and service options. Pioneer plans to add 10 more sites immediately and gradually increase the total number of sites during the months to come.

"This is another convenience for customers who purchase their prepaid cellular and long-distance at Gas and Convenience Stores", said Paul Brock, President of VendTek Systems Inc. " Pioneer's launch of 65 terminals opens an additional marketplace that we can service and add increased variety for prepaid products".

The client licenses allow Pioneer Petroleums and their customers to connect their POS terminals with Now Prepay's e-FreshÔ server. This enables POS terminals to provide the re-sale of prepaid long distance and wireless services through the electronic network.

For more information please contact Samantha Haynes at 604.940.2239.

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.

About Pioneer Petroleum

Based in Burlington, Ontario, Pioneer Petroleum (www.pioneer.ca) is Ontario's largest independent gasoline retailer with 143 locations throughout Ontario. For further information, contact the Company directly at 905-639-2060.

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.