September 28, 2005- VendTek Systems
Inc. (TSX-V: VSI) ("VendTek" or "The Company"),
a leading provider of software for prepaid service distribution,
announces that further to the news release dated August
4, 2004 regarding an exclusive agreement with ChinaPay,
VendTek has transferred that license to a new entity in
China, which has now launched its eFresh™
based business. The new entity, Shanghai Ehesh Network
Technology Co. Ltd. ('Ehesh'), has launched its web based
prepaid product distribution and anticipates launching
its POS-based distribution before the end of this year.
Under the terms of the revenue sharing license agreement,
VendTek will provide eFresh™
technology to Ehesh in return for transaction fees which
are based on the revenues of product sold through the
system. VendTek will be Ehesh's single source for prepaid
product delivery software.
Over the past year, Ehesh has been developing its prepaid
gaming distribution operations and web-based business.
Ehesh has now launched their web site, www.ehesh.com
offering approximately 200 internet game vouchers, which
are delivered via its own eFresh™
server in Shanghai. The Ehesh website accepts payment
by bank card or credit card, which are processed by China
Union Pay. Ehesh is developing POS terminals with eFresh™
client software, which are expected to be launched before
the end of 2005.
Paul Brock, president of VendTek said, " The transfer
of the eFresh™
license to Ehesh allows our business to significantly
accelerate growth.. We believe Ehesh is much better positioned
to create a nation-wide business. Their focus on internet
gaming is an excellent example of the variety of applications
for eFresh™
outside of telecommunications. "
To facilitate the launch of Ehesh's internet business
VendTek adapted the eFresh™
software, allowing it to sell credit based products with
values that change in real time. This opens the door for
a whole new range of products to be sold by eFresh™
users in other countries. This launch puts eFresh™
software front and centre in the worlds largest prepaid
market.
Selling and marketing expenditures decreased by $56,000
(42%) to $78,000 for the nine-month period ended July
31, 2005 compared to $134,000 for the same period of 2004.
The decrease is principally due to reduced sales travel
and the reduction of wage expenses.
Net loss from continuing operations for the nine months
ended July 31, 2005 totaled ($300,000) representing a
$433,000 improvement from the results in the same period
of 2004 which produced a net loss of ($733,000). The loss
per share was decreased to $(0.00) per share compared
to the loss of $(0.01) for the same period in 2004. This
was attributed to higher systems revenues, increased virtual
telecommunication sales and new discount payment options
offered by a few suppliers.
The complete statements are available at www.sedar.com.
For further information, 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 eFresh™
software and related technologies, which provides electronic
distribution of prepaid telecommunication and financial
services. VendTek is commercializing the eFresh™
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 eFresh™
software to build electronic, prepaid services networks
which enable consumers to purchase prepaid services
via POS and self-serve terminals connected to a central
eFresh™
server. This system creates significant value through
improved efficiencies compared to the traditional distribution
paradigm. eFresh™
reduces shrinkage and inventory requirements while improving
consumer access to prepaid services since it is completely
electronic and eliminates physical cards and vouchers.
About Shanghai Ehesh Network Technology Co. Ltd.
('Ehesh')
(www.ehesh.com)
Shanghai Ehesh Network Technology Co. Ltd. ('Ehesh')
is a hi-tech company listed in 1999 on the Shengzheng
stock exchange and trades under the name Naintian Electronic
Information Industry Co. Ltd. Their website is www.nantian.com.cn.
The Company is headquartered in Shanghai and has six
subsidiaries. Its core business is IT services including
software development, system integration and financial
equipment production, uniting multiple industry resourses
and network systems, and marketing for their digital
products. The company's aim is to build the number one
brand for digital product distribution in China.
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The TSX Venture Exchange has
not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.
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