October 1, 2007 -VendTek Systems Inc. (TSX-V: VSI) (“VendTek” or “The Company"), a leading provider of software for prepaid service distribution, is pleased to announce that it has signed a distribution agreement with Payment Alliance International to provide its e-Fresh™ software for the electronic distribution of prepaid products and services in the United States.

Payment Alliance International (“PAI”), a leader in the Payment Processing industry, has over 40,000 merchants, $3.8 billion in annual transaction volume, and over 300 Financial Institution relationships that result in more than 500 branches. They are also one of the top three providers of ATM services in the United States and have over 8,700 active locations.

PAI will use VendTek’s e-Fresh™ software and server solutions to distribute prepaid wireless and long distance products electronically within its proprietary PrimeTrex POS terminal at its retailers throughout the country.

“VendTek’s e-Fresh™ software is a strong fit with our current prepaid wireless strategy,” said Donna Embry, Senior Vice-President of PAI. “As we evolve our offerings in this space, we are excited about the new opportunities this relationship will bring to our merchants.”

Doug Buchanan, President and CEO of VendTek Systems Inc. added, “We are extremely pleased to be working with PAI. They have a significant base of customers across the United States. The agreement is an extension of our strategy in the U.S. to sign and support the highest quality partners. We believe that this strategy allows us to create and maintain momentum in the U.S.”

For further information, please contact Samantha Haynes at 604-805-4653 or 1-800-806-4958.

About Payment Alliance International
Payment Alliance International (PAI) is a leader in the payment processing industry offering credit card, check, ATM network management, cash management and business information services. Created by leading payment executives, PAI has become one of the fastest growing companies in America. PAI is based in Louisville, Kentucky. For more information, please visit www.PaymentAllianceINTL.com

About VendTek Systems Inc.
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 subsidiary, VendTek Systems Technologies (in China), are using 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 website www.vendteksys.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.