VendTek Systems Inc.
TSX VENTURE : VSI

VendTek Systems Inc.

September 20, 2007 08:00 ET

VendTek Reports Third Quarter Results of 2007

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2007) - VendTek Systems Inc. (TSX VENTURE:VSI) ("VendTek" or "The Company"), a leading provider of automated transaction systems software, today announced the results of its operations for the third quarter ending July 31, 2007.

Key highlights for the nine months ending July 31, 2007, and 2006, include:

- Revenues increased 50% to $61.827 million in 2007 from $41.185 million in 2006.

- Earnings of $632,000 for 2007, compared to $520,000 for 2006.

- Overall gross margins increased to 6.3% for 2007, compared to 6.1% for 2006.

- The seventh consecutive quarter of profitability.

Key highlights for the three months ended July 31, 2007, and 2006, include:

- Total revenue increased 89% to $28.147 million in 2007 from $14.894 million in 2006.

- Prepaid revenue totaled $27.907 million for 2007, compared to $14.837 million for 2006.

- Earnings of $267,000 in 2007 compared to $320,000 in 2006.

Our Canadian prepaid revenues-- consisting of prepaid telecommunications products, gift cards and music downloads-- were $61.065 million for the nine months of 2007 compared to $40.940 million for the nine months of 2006. Our Canadian revenues continue to increase as we increase the number of terminals. Our terminals at the end of the nine months were 11,937.

Our software and related service revenue increased by $565,000 (or 409%) to $703,000 for the nine months of 2007 from $138,000 for the same period in 2006. Software and services revenue increased primarily from our licensing customer in the United Arab Emirates.

"I am pleased with our recent results. We have continued to grow our revenues significantly through the focused execution of our business plan. Our recent launch into the U.S. means that we expect to see revenues from these operations over the next few quarters which will positively impact our bottom line. Our international business continues to grow. We expect increasingly positive results from those markets as we increase our efforts to grow our license revenues," said Doug Buchanan, CEO of VendTek Systems Inc.

Nurez Khimji, CFO of VendTek Systems Inc. added, "We anticipate U.S. and international growth will have a positive effect on our margins. As we continue to grow in these markets and Canada, we expect to continue to deliver strong financial results."

Chief Executive Officer Doug Buchanan and Chief Financial Officer Nurez Khimji will hold a conference call with the financial community today, Thursday September 20th at 7:30 a.m. PDT (10:30 a.m. EDT) to review the Company's financial results and provide an update on business developments.

Interested parties may participate in the conference call by dialing (416) 644-3423 or (800) 732-6179.

The complete statements are available at www.sedar.com or on VendTek's website www.vendteksys.com.

For more information or to receive the complete statements please contact Samantha Haynes at 604-805-4653 or 1-800-806-4958 or shaynes@vendteksys.com.

About VendTek

VendTek develops and licenses automated transaction system software and supporting technologies that improve the efficiency of product delivery, reduce costs to clients and offer superior safety measures. VendTek's customers and its subsidiary, VendTek Systems Technologies (in China), 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 e-Fresh™ 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 by completely eliminating 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.

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