VENDTEK REPORTS FIRST QUARTER RESULTS OF 2005

March 31, 2005 – VendTek Systems Inc. (TSX-V: VSI) (“VendTek” or “The Company"), a leading provider of software for prepaid service distribution, announces $7,569,908 in revenues for the three months ended January 31, 2005. Revenues increased $3,818,798 or 101% for the three month period ended January 31, 2005 compared to $3,751,110 in the same period of 2004.

The revenues are comprised of prepaid PIN revenues of $7,541,098 compared to prepaid PIN revenues of $3,562,370 for the same period of 2004, license and engineering revenues of $3,846 compared to $26,550 in the same period of 2004, and systems and parts sales of $24,964 compared to $162,190 in the same period of 2004.

License and engineering revenues were down $22,704 (85.5%) due to a reduction of engineering service services supplied. Systems and parts revenues also decreased in the period by $137,000 (84.6%) due to fewer orders.

The consolidated gross profit for the first quarter of 2005 was $230,023 compared to $188,367 in the same period in 2004, an increase of 22%. The high revenues generated by Now Prepay accounted for the majority of consolidated gross profits that remain indicative of the low margin virtual prepaid telecommunications industry in which Now Prepay conducts its business. The margin increase is positively correlated to revenue increase.

For the eighth consecutive quarter, revenues have continued to grow. The increase is a result of the continued growth of VendTek’s wholly owned subsidiary Now Prepay Corp. As at January 31, 2005, there were 6,012 terminals deployed and this number reflects a growth of 108% compared to the 2,879 terminals that were active at the same time last year.

The ongoing installation of POS terminals across Canada for the sale of virtual prepaid telecommunications vouchers provides meaningful revenues which are augmented by the wholesale portion of Now prepay’s prepaid cellular business.

Paul Brock, President of VendTek Systems Inc. said, “We have been focused on improving our financial strength to benefit our shareholders. These first quarter results are demonstrating our sincerity in doing so. We have achieved positive cash flow from activities of $324,251 for the first quarter of 2005 compared to using cash of ($297,939) in the same period of 2004. As our sites continue to increase through Now Prepay, and the revenues continue with double digit growth, our margins will keep getting better and better. Our customer growth speaks to the satisfaction of our technology and we want to dominate the prepaid distribution network in Canada and other markets through licensing our technology to as many terminals as there are in the marketplace.”

General and administrative expenses decreased by $29,944 or (8%) to $337,068 compared to $367,012 in the same period in 2004. Telecommunications, amortization and bad debt expenses rose by $26,165 (104%) due to increased costs associated with Now Prepay telecommunication lines as well as an increase in amortization costs due to new terminal purchases.

The increases were offset by reductions in almost every other category; accounting and legal fees decreased by $21,393 (59%), computer expenses decreased by $3,649 (58%), banking charges decreased by $2,037 (38%), office expenses decreased by $7,733 (20%), rent decreased by $10,299 (26%) and salary expenses were reduced by $19,242 (10%); all due to decreased spending. Long term interest and investor relations expenses increased by $2,744 (17%) and $2,285 (65%) respectively. Travel and promotional expenses were up $5,367 (190%) due to increased travel and automotive expenses as well as meals and other marketing expenses.

Selling and marketing expenses decreased by $15,826 (51%) to $15,090 for the first quarter of 2005 compared to $30,916 for the same quarter of 2004. The decrease is due to reduced sales travel, advertising and trade show expenses. The reduction of expenses was offset slightly by wages paid on contract of $2,703.

Net loss for the quarter was ($182,882) or ($0.01) per share compared to ($258,342) or $(0.01) per share for the same quarter of 2004. This decrease in loss was due to higher systems revenues and increased virtual telecommunication sales.

The complete statements are available at www.sedar.com.

For more information, or to receive news and updates as they become available, please contact Samantha Haynes at 604.805.4653 or 1-800-806-4958 or investment@vendteksys.com.

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

VendTek Systems Inc. develops and licenses e-Fresh™ software and related technologies, which provides electronic distribution of prepaid telecommunication and financial services. VendTek is commercializing the e-Fresh™ software under license to create sustainable and recurring revenues. VendTek's customers and its subsidiaries, Now Prepay Corp. (in Canada) and 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 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.