VENDTEK ANNOUCES FIRST TRANCHE CLOSING OF PRIVATE PLACEMENT AND APPLICATION TO INCREASE OFFERING SIZE

March 29, 2004 – 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 completed a first tranche closing of its non-brokered private placement announced March 5, 2004 and updated March 12, 2004.

The Company issued a total of 4,967,544 units at a price of $0.15 per unit, for aggregate gross proceeds of $745,131.60. Each unit consists of one common share of the company and a full warrant exercisable into a further common share at a price of $0.20 for a period of two years. The Company issued an additional 321,369 units in finder's fees. The units and underlying securities are subject to Exchange and statutory hold periods, both expiring on July 26, 2004.

With the success of the first tranche, the Company will be seeking TSX approval to increase the size of its unit offering from $1.0 million to $1.3 million, to accommodate current and potential subscriptions for a second tranche closing expected next week.

For more information, or to receive news and updates as they become available, please contact Investor Relations at 1-800-806-4958 or 604-805-4653 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 used 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.