July 12, 2006 - VendTek Systems Inc. (TSXV: VSI) ("VendTek" or "The Company"), a leading provider of software for prepaid service distribution, is pleased to announce that its wholly owned subsidiary Now Prepay Corp. ("Now Prepay") has entered into an agreement with a marketing company for the sale and distribution of 3rd party gift cards in Now Prepay's customers' national and regional chain retail locations throughout Canada.


Now Prepay's technology allows the company's portfolio of 3rd party gift cards, also know as a gift card mall, to be activated at Now Prepay retailers. Now Prepay will begin the roll-out of the gift card mall in August and expects to have close to 1,000 retailers participating by Christmas.

The marketing company's offering of third party gift cards includes cards from many of Canada's best known retailers.

VendTek and Now Prepay President, Doug Buchanan commented, "We consider this agreement to be very important for the Company, keeping us on the leading edge of products that we offer to our retailers. The gift card market is growing year after year and research shows the gift card market potential in Canada to be worth $2.4 billion for 2006; this lags behind the United States: gift card sales in the U.S. are expected to be around $70 billion in 2006. Expanded product offerings for Now Prepay's customers helps drive more customers into their stores boosting sales and encouraging loyalty to Now Prepay."

For more information please contact Samantha Haynes at 1.800.806.4958 or 604.805.4653 or investment@vendteksystems.com.

About VendTek and Now Prepay

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 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 by completely eliminating physical cards and vouchers. For further information please visit the Company's websites www.vendteksys.com and www.nowprepay.com.