October 12, 2006 -VendTek Systems Inc. (TSX-V: VSI) ("VendTek" or "The Company"), a leading provider of software for prepaid service distribution, announces that it is forming a joint partnership in Beijing to operate a new company called "Beijing Wanbosi Communication Co. Ltd." VendTek will own 10% equity in the company as well as receive an ongoing eFresh™ license fee plus a management fee for the first two years.

Beijing Wanbosi Communication Co. Ltd. has signed an agreement with Beijing Unionpay Merchant Services Co., Ltd., a national transaction processor in China that was established by consolidating 18 bankcard network service centers and the National Information Switch Center to move the bankcard into universal usage in China and further develop the market. Beijing Unionpay currently has 20,000 POS terminals in Beijing operating a payment application. VendTek will integrate eFresh™ with the payment application and enable the network to sell eFresh™ products.

Doug Buchanan, president of VendTek said, "We have been working with our customer in China to build the business and now we have an opportunity in Beijing to participate in a revenue model that benefits VendTek. We anticipate the system will be running in six to nine months and we will be closely monitoring the progress of the business to see how quickly we can integrate eFresh™ into Beijing Unionpay's POS terminals".

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

(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.