VANCOUVER - January 26, 2012 -VendTek Systems Inc. (VSI - TSX Venture) (the "Company"), a developer and licensor of software for the global prepaid and financial services markets, today reported its financial results for the year ended October 31, 2011.

Summary of Fiscal Year Operational Highlights

• Signed national distribution agreements with Telefonica, Vivo, and Claro in Brazil
• Added Oi wireless products to the Now Prepay network in Brazil.
• Signed an agreement with Banco Santander S.A. to offer bill payments in Brazil
• Signed an agreement in Brazil with a credit and debit processor to provide electronic mobile recharge services to the processor’s merchant network (approximately 3,000 distribution points).
• Signed an agreement with Universal Payment Systems Ltd. to license its e-Fresh™ software for the Nigerian market.
• Signed a partnership agreement with Roshan and M-Paisa, Afghanistan’s first mobile money transfer service, to offer mobile financial services
• Successfully raised over $6.5 million during the year
• Ended the year with approximately 1,400 terminals in Brazil

Selected Financial Information

• Revenues for the year decreased $13.5 million to $108.4 million, or 11%, from $121.9 million for the corresponding period in 2010 primarily due to the changes in the Canadian prepaid wireless market;
• Gross margins remained consistent at 5.1% for both years
• Adjusted EBITDA decreased to a loss of $2.9 million in 2011 from $46,000 in 2010
• Net loss of $4.4 million for the year ended 2011 compared to a loss of $327,000 for the same period in 2010.

“Looking back at 2011, we achieved a number of key milestones that we believe will allow us to experience significant future growth,” said Doug Buchanan, President and Chief Executive Officer of VendTek. “We launched our operations in Brazil, initiated development of our mobile commerce platform with a significant mobile network operator, and ensured that we have the financing to grow these initiatives.”

Mr. Buchanan continued, “Our goals for 2012 are to increase the transaction volumes processed through our networks. We will do this by increasing our points of presence, our product offering, and the markets that we serve. We believe these efforts will create value for our shareholders.”

Mr. Buchanan said, “specifically in Brazil, we expect in 2012 that we will continue to expand our operations”. Mr. Buchanan continued, “at year-end, our network of about 1,400 locations was comprised primarily of independent retailers in Sao Paulo State. During the year, we expect to expand our sales efforts to target medium sized and independent retailers in other states as well. We have also partnered with stored value processors to offer prepaid mobile recharge to their retail networks. During the year, we announced the signing of a stored value processor with a network of approximately 3,000 distribution points. We expect to add similar partnerships and launch with the first stored value processor in 2012.”

Nurez Khimji, Secretary and Chief Financial Officer of the Company, said, “We were negatively impacted by the decrease in prepaid subscribers in Canada. The total number of prepaid subscribers declined to about 4.5 million in 2011 from about 4.6 million in 2010. However, we mitigated this decrease by attracting additional mobile telecommunication suppliers in Canada. Specifically, we were successful in the latter part of the year by signing with two suppliers of the unlimited mobile telecommunications plans. We have also mitigated this decrease by launching our network in Brazil. We processed over $1 million dollars in the fourth quarter of 2011. This contributed over $40,000 in gross profit during the quarter. Since year end, the dollars processed through our network in Brazil have continued to increase”

VendTek’s MD&A and complete statements are available at www.sedar.com and the Company’s website www.vendteksystems.com.

For more information or to receive the complete statements please contact Samantha White at 604-805-4653 or 1-800-806-4958 or investment@vendteksystems.com.

Conference Call
VendTek management will host a conference call on Friday January 27th at 7:00 AM PST (10:00 AM EST) to discuss its financial results and operational highlights for the fiscal year ended October 31, 2011.

To access the conference call by telephone, dial 1-647-427-7450 or 1-888-231-8191 and reference the company name, VendTek Systems Inc., or the conference code 46746968.

A live audio webcast of the conference call will be available at http://www.newswire.ca/en/webcast/detail/910301/971347 Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.

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's customers, subsidiaries and its Now Prepay division use e-Fresh™ software to build electronic, prepaid services networks that enable consumers to purchase prepaid products and services via POS and self-serve terminals connected to a central e-Fresh™ server. This system creates significant value through improved efficiencies compared to a traditional distribution model. e-Fresh™ reduces shrinkage and inventory requirements for vendors while improving consumer access to prepaid products and services by completely eliminating physical cards and vouchers. VendTek has deployed its software around the world including Canada, United States, Asia, the Middle East and Africa. For further information please visit the Company's websites www.vendteksystems.com and www.nowprepay.com.

Forward-Looking Information
This news release contains statements which are not current statements or historical facts and are “forward-looking information” within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, contained in this news release constitute forward-looking information. Wherever possible, words such as “plans”, “expects” or “does not expect”, “budget”, “forecasts”, “projections”, “anticipate” or “does not anticipate”, “believe”, “intent”, “potential”, “strategy”, “schedule”, “estimates” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved and other similar expressions have been used to identify forward-looking information. These forward-looking statements relate to, among other things the Company’s expectations regarding future growth, results of operations (including, without limitation, future production and sales, and operating and capital expenditures), performance (both operational and financial), business and political environment and business prospects (including the timing and development of new deposits and the success of exploration activities) and opportunities.

Although the forward-looking information in this news release reflects the Company’s current beliefs on the date of this news release based upon information currently available to management and based upon what management believes to be reasonable assumptions, the Company cannot be certain that actual results, performance, achievements, prospects and opportunities, either expressed or implied, will be consistent with such forward-looking information. By its very nature, forward-looking information necessarily involves significant known and unknown risks, assumptions, uncertainties and contingencies that may cause the Company’s actual results, assumptions, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking information. These risks and uncertainties include, among other things, revenue growth, operating results, the market demand for our products, product development, and litigation as well other factors described in the Risks Related to Our Business Section in our 2011 annual Management Discussion and Analysis. There may be other factors that cause results, assumptions, performance, achievements, prospects or opportunities in future periods not to be as anticipated, estimated or intended.

There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differ materially, from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release. Accordingly, all such factors should be considered carefully when making decisions with respect to the Company, and prospective investors should not place undue reliance on forward-looking information. The Company assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.