October 17, 2006 -VendTek Systems Inc. (TSXV: VSI) ("VendTek" or "The Company"), a leading provider of software for prepaid service distribution, announces that it will be conducting a private placement of up to 1,428,571 common shares of the Company at a price of $0.35 per share.

For further information about VendTek and Now Prepay please contact Samantha Haynes at 1.800.806.4958 or 604.805.4653 or shaynes@vendteksys.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.