VANCOUVER, March 29 /PRNewswire-FirstCall/ -- VendTek Systems Inc. (TSX-V: VSI) ("VendTek" or "The Company"), a leading provider of automated transaction system software, is pleased to report the results of its operations for the first quarter ended January 31, 2007.

Total revenues increased 28% for the first of quarter of 2007 to $16.415 million from $12.824 million.

Prepaid telecommunications revenue totaled $16.117 million for the quarter ended January 31, 2007, compared to $12.726 million for same quarter in 2006. The 27% increase is primarily due to ongoing installation of POS terminals across Canada for distribution of virtual prepaid telecommunications vouchers (or PINs) through our distribution network.

Our software and related service revenue increased by $228,000 (or 691%) to $261,000 for the first quarter of 2007 from $33,000 for the same period in 2006. Software and services revenue increased because of our licensing customer in the United Arab Emirates.

Our hardware revenue for the first quarter of 2007 was $36,000 compared to $66,000 in 2006. The decrease was due to reduced parts orders from our legacy vending machine customers.

Overall gross margins increased from 5.6% for the first quarter of 2006 to 7.0% for the first quarter of 2007.

Net income for the three months ended January 31, 2007 was $268,000 compared with $94,000 for the three months ended January 31, 2006.

"We are pleased with our first quarter results. Our expansion outside of Canada, particularly in the U.A.E, is starting to have a significant impact on our results. We look forward to our growth plans in the United States and continued growth in Canada." Said Doug Buchanan, President and CEO of VendTek Systems Inc.

The complete statements are available at http://www.sedar.com/. 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 and its subsidiaries, Now Prepay Corp. (in Canada) and VendTek Systems Technologies (in China), are using e-Fresh(TM) 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(TM) server. This system creates significant value through improved efficiencies compared to the traditional distribution paradigm. e-Fresh(TM) 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 http://www.vendteksys.com/ and http://www.nowprepay.com/.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Company assumes no obligation to update any forward-looking information contained in this news release.

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

CONTACT: or to receive the complete statements please contact Samantha Haynes, at (604) 805-4653, or 1-800-806-4958, or shaynes@vendteksys.com

CONTACT: to receive the complete statements please contact Samantha
Haynes, at (604) 805-4653, or 1-800-806-4958, or shaynes@vendteksys.com