July 17, 2006 - VendTek Systems Inc. (TSX-V: VSI) ("VendTek" or "The Company"), a leading provider of software for prepaid service distribution, announces that its customer in China, Shanghai Ehesh Network Technology Co. Ltd. ("Ehesh"), has signed a strategic agreement with the largest retail network chain in China.


The retail chain has more than 3,000 locations in ten cities in China. Ehesh will be providing electronic distribution of prepaid products and services. The retail chain will enable Ehesh to substantially increase its network presence and Ehesh will have the ability to integrate popular electronic products into their product mix based on their customers demand.

All of Ehesh's distribution is backed by VendTek's eFresh™ technology which VendTek provides to Ehesh in return for ongoing transaction fees based on the revenues of product sold through the system.

Doug Buchanan, president of VendTek said, "This is a major step for Ehesh. They have been steadily building their business and selling the concept of electronic distribution. For a major retail chain to use the software and the system shows that Ehesh has been successful in their efforts."

For further information, please contact Samantha Haynes at 604.805.4653 or 1-800-806-4958 or shaynes@vendteksys.com

About VendTek and Now Prepay

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.