VENDTEK INTRODUCES NEW E-FRESH PRODUCTS AND SURPASSES MAJOR MILESTONE

October 6, 2004 - VendTek Systems Inc. (TSX-V: VSI) ("VendTek" or "The Company"), a leading developer of software for the prepaid service distribution industry, today announced three new e-Fresh products and achievement of the 5,000 POS client milestone in Canada by its wholly owned subsidiary Now Prepay.

The new products introduced are i) e-Fresh XP client - a software application for PC based terminals, ii) e-Fresh Web Viewer - a new web based reporting system, and iii) e-Fresh Server 2005 - a new multi-language software release developed initially for China.

The introduction of the new PC based e-Fresh software application (e-Fresh XP) is expected to help continue fueling the growth of the Now Prepay business. With this new product retailers can use their PC based POS terminal or a standard PC, printer, and Internet connection to connect to the Now Prepay server. Like all the e-Fresh clients, the new e-Fresh XP application allows the retailer to sell prepaid vouchers for a wide range of prepaid products and services. The e-Fresh XP application can be emailed to customers so that they can retail prepaid services with no additional hardware.

VendTek's latest e-Fresh Server 2005 software suite now has multi-language interface capability to better support deployment into foreign markets. The initial launch of this new software is into its growing customer base in China. Additional language libraries will be developed as new customers are added.

Now Prepay is launching the new e-Fresh Web Viewer developed by VendTek. This new Web Viewer service allows Now Prepay's distribution partners and retailers to log onto the Now Prepay server, generate and view reports. The reports provide them access to their account online and in real time. Now Prepay unveiled the new e-Fresh products at the Convenience Store Tradeshow in Toronto last week.

"We are very pleased to surpass the 5,000 terminal milestone and excited about the potential of the new e-Fresh products to assist our customers grow their businesses. We know there is significant demand for it amongst our customers and we know it can open new distribution channels for us. Reaching 5,000 distribution points firmly establishes ourselves as the predominant distribution network in Canada and we are confident we will continue to lead the industry here in growth. We have recently established a presence in Quebec through the creation of a satellite office that provides support to the significant number of Now Prepay customers that are based in Ontario and Quebec. Over the next several years we expect to see tens of thousands of new distribution points in Canada and significant revenue growth as a result." said Doug Buchanan President of Now Prepay.

Paul Brock, President of VendTek said, "We believe the new e-Fresh XP software and multi-language capability will give our customers added opportunity to capture market share and develop their business value. This in turn will improve our business value through the ongoing licensing revenues they generate for us. Our goal is to continue providing software under license to generate recurring revenues and lead to a positive bottom line within the next twelve months while we continue expanding into foreign markets."

For more information, or to receive news and updates as they become available, please contact Samantha Haynes at 604.940.2239 or 1-800-806-4958 or investment@vendteksys.com.

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.

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.