VENDTEK ANNOUNCES MILESTONE ACHIEVEMENT FOR DEPLOYMENT OF POS LICENSES

July 24, 2003 - VendTek Systems Inc. (TSX-V: VSI) ("VendTek" or "The Company"), a leading provider of software for prepaid service distribution, is pleased to announce that it has reached a milestone in the development of its Now Prepay business. The Company has now deployed 1000 e-Fresh Clients in POS terminals in retail stores across Canada.

In addition to the total retail sites already offering Now Prepay services, the Company has already sold an additional 600 client licenses bringing the committed total client deployment to 1600 in Canada. Each deployed e-Fresh client in a retail site connects back to the Now Prepay server and creates recurring transaction revenues from the sale of prepaid services. Now Prepay began selling the client licenses in November 2002.

"This is a tremendous achievement for VendTek and Now Prepay. The growth rate has been excellent and recent trends indicate we can expect that to continue. Our customers have shown their approval for our product by the amount of re-orders that we have received. The feedback has been extremely positive." said Paul Brock, President of VendTek Systems Inc.

Now Prepay is joining forces with POS terminal distributors and transaction processing organizations to integrate VendTek's e?Fresh™ software with debit card and credit card processing software. The combined applications provide a value added solution to the channels presently served by physical cards for prepaid telecom services. Given the anticipated future discontinuation of physical cards by Canadian Cellco's, VendTek, through Now Prepay, is poised to capture a significant share of the electronic distribution of prepaid services market in Canada.

For more information, or to receive news and updates as they become available, please contact Investor Relations at 1-800-806-4958 or 604-940-2239 or investment@vendteksys.com.

About VendTek and Now Prepay
(www.vendteksys.com / www.nowprepay.com)

VendTek Systems Inc. engineers, markets and sells e-Fresh, which is an electronic distribution software for prepaid telecommunication 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.

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.