VENDTEK SYSTEMS INC. REPORTS 2004 YEAR END RESULTS

Vancouver, BC, February 9, 2005 - VendTek Systems Inc. (TSX-V: VSI) (“VendTek” or “The Company"), a leading provider of software for prepaid service distribution, announces record revenues of $21,391,579 for the year ended October 31, 2004.

Revenues rose 88% for the 12mo2004 to $21,391,500 compared to $11,369,000 for the 12mo2003. The 12mo2004 revenues are comprised of prepaid PIN revenue of $20,945,000 (12mo2003 - $10,825,500), license and engineering revenues of $123,500 (12mo2003 - $277,000), and systems and parts sales of $323,000 (12mo2003 - $159,000).

As in each of the previous seven quarters, revenues have continued to grow. The increase is indicative of the continued success of the Company’s subsidiary Now Prepay Corp. The ongoing installation of POS terminal clients across Canada for the sale of virtual prepaid telecommunications vouchers continues to provide growing revenues. License and engineering revenues were down 124% ($153,000) due to a reduction in engineering services supplied. However, this was partially offset by a 103% ($164,000) increase in systems and parts revenues derived from the sale of a server in Malaysia and parts sold in Canada.

The consolidated gross profit for the 12mo2004 was $772,000 compared to $600,000 for the same period in 2003, an increase of 28%. The high revenues generated by Now Prepay accounted for the majority of the consolidated gross profits that remain indicative of the low margin virtual prepaid telecommunications industry in which Now Prepay conducts its business.

Due to a reallocation of expenses, general and administration (“G&A;”) expenses increased by $508,000 (54%) to $1,441,000 for the 12mo2004 compared to $933,000 for the 12mo2003. Salaries under G&A; increased $333,000 (95%) with the appropriate re-allocation of Now Prepay management wage expenses from sales to G&A; travel and promotional expenses were up $17,000 (340%) due to increased travel and automotive expenses as well as meals and other client entertainment expenses; office, telecommunications, rent, amortization and interest expenses rose $141,000 (34%) due to increased costs associated with Now Prepay telecommunication lines and increased paper and postage costs, transaction costs as well as an increase in rent and insurance expenses; accounting and legal fees decreased $22,500 (21%) due to increased legal expenses in the quarter; computer expenses increased by $13,000 (120%) due to the purchase of computers to act as demonstration and active servers in Asia and Canada! , banking charges increased $10,000 (83%) due to increased electronics funds transfer charges related to the collection of Now Prepay revenues; investor relations costs increased by $14,000 (65%) due to increased services.

The reallocation of expenses to G&A; caused engineering expenses to decrease $106,000 (-38%) to $275,000 for the 12mo2004 compared to $381,000 for the 12mo2003. The reduction is offset by an increased use of contract engineering, and additional engineering staff in VendTek Technologies Beijing.

Selling and marketing expenses decreased $124,000 (-67%) to $186,000 for the 12mo2004 compared to $311,000 for the 12mo2003. The decrease is due to the reallocation of sales wage expense to G&A.; The reduction is offset by an increase in business travel during 2004.

Net loss for 12mo2004 decreased by $120,000 (9%) to $1,309,340 when compared with the 12mo2003 loss of $1,428,000. This increase in earnings was due to higher systems revenues and increased virtual telecommunication sales for the 12mo2004 compared to 12mo2003. The earnings are offset by increased expenses in wages, telecommunication, office and computer expenses. The net loss per share for the 12mo2004 decreased by 50% to ($0.04) compared to ($0.06) for the 12mo2003.

“We continue to focus on building shareholder value by growing our transaction-based revenues and increasing our customers base. We have made real progress becoming cash flow positive and building up our cash reserves to support our operations. These should all contribute to continually improving financial results. In Canada, the number of terminals that our wholly owned subsidiary Now Prepay has launched has just reached 6000 and is continuing to grow. We have license agreements issued in China, Singapore, Malaysia and the United Arab Emirates that should all be contributing to our license revenues this year. The growth of VendTek’s business in North America combined with that in Asia will help us build substantial shareholder value over the next several years.” said Paul Brock, president of VendTek Systems.

Complete results for the year ended October 31, 2004 may be accessed via the Company’s web site at www.vendteksys.com or via the Sedar web site at www.sedar.com.

For more information, or to receive news and updates as they become available, please contact Samantha Haynes at 1-800-806-4958 or 604.805.4653 or via e-mail 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.

Click here to see 2004 Year End Financial Results(PDF).