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Vancouver, BC, May 4, 2007 -VendTek
Systems Inc. (TSXV: VSI) (“VendTek” or “The
Company"), a leading provider of software for prepaid
service distribution, is pleased to announce that the
Company has entered into a definitive agreement to acquire
Go Prepaid Inc. a private company based in Toronto,
Ontario. Go Prepaid specializes in the distribution
of prepaid telecom products and has been a distribution
partner of Vendtek’s since 1999.
Go Prepaid’s earnings before interest, depreciation,
amortization and taxes (EBITDA) for the year ended June
30, 2006, were about $165,000. The purchase price is
$750,000 in cash and 721,542 Vendtek shares for all
issued and outstanding shares of Go Prepaid. The total
consideration is $1.392 million.
George DeMarchi, principal of Go Prepaid, stated: “We
have been working successfully with Vendtek over the
last few years. I am excited about our future as a part
of Vendtek.”
By combining the companies’ resources and domain
expertise, Vendtek is now positioned to increase market
penetration in the Canadian market.
“We are continuing to broaden our market presence
in the Canadian prepaid market. The acquisition will
bring a strong customer base with an additional 300
sites and experience in the prepaid industry,”
says Doug Buchanan, Chief Executive Officer of Vendtek.
“We are very pleased to have the Go Prepaid staff
join our team and look forward to continued success.”
The acquisition is expected to close on May 7, 2007.
For more information please contact Samantha Haynes
at 1-800-806-4958 or 604-805-4653 or via e-mail investment@vendteksystems.com.
About Go Prepaid
Go Prepaid was established in 1994 when the
company partnered with Bell Canada to build a vending
distribution channel in Ontario and Quebec for the launch
of the Hello! Long Distance Prepaid product. The company
built a distribution network catering to the traveling
public that included the Toronto, Montreal and Ottawa
airports as well as bus terminals, shopping centres,
train stations and public venues such as sporting arenas.
The company subsequently partnered with BC TEL to establish
a distribution network, encompassing both vending and
retail sales channels. BC TEL's merger with Telus expanded
this relationship into Alberta, and now, with Telus
national reach, Go Prepaid is positioned to provide
prepaid solutions coast to coast.
Today, Go Prepaid provides a comprehensive portfolio
of prepaid solutions. From its origins with Prepaid
Long Distance cards, the product portfolio has expanded
to include Prepaid Payphone, Prepaid Wireless and now
a new convergent card that integrates Prepaid Internet,
Voicemail and Long Distance services. Go Prepaid also
works with partners for customized products in support
of special programs and events.
About VendTek
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
uses e-Fresh™ software to build electronic, prepaid
services networks, which enable consumers to purchase
prepaid services via POS and self-serve terminals connected
to a central e-Fresh™ server. This system creates
significant value through improved efficiencies compared
to the traditional distribution paradigm. e-Fresh™
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.
The TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy
or accuracy of this release.
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