VANCOUVER, Canada, May 12, 2003 (PRIMEZONE) -- VendTek Systems Inc. (TSX Venture:VSI) ("VendTek" or "The Company"), a leading provider of automated transaction technology, is pleased to announce the sale of an additional 100 POS terminals and e-Fresh(tm) licenses to its partner in China, The UFO Group ("UFO").
VendTek has developed POS software clients for the market in China to expand the suite of products already available to VendTek's customers there. UFO will use the terminals to expand its business currently targeting the Beijing market and the growing prepaid market in China.
In January 2003, the e-Fresh(tm) system operated by UFO in China delivered RMB 20,000,000 (approximately $4,000,000 Canadian) worth of prepaid cellular services. The system turnover has since grown to RMB 30,000,000 per month (approximately $6,000,000 Canadian) representing the system operator's top line revenues. VendTek earns license revenues from all transactions processed by the e-Fresh(tm) system.
In an article dated April 22, 2003 China's National newspaper China Daily reported, "China is now one of the fastest-growing telecom markets. Penetration remains low, with just 15 per cent of China's 1.4 billion population owning a mobile phone." According to the newspaper, cellular phone subscribers in China are continuing to increase at a rate of more than five million per month.
"We believe we are already one of the leading suppliers of this type of technology in China and expect to continue growing the business there through UFO and other partners. The sale of more licenses and POS terminals to UFO continues to demonstrate the successes we are having in laying the foundation for future growth of e-Fresh(tm) in the marketplace. The system revenues are showing a steady increase and this will result in favorable returns to VendTek as the growth continues," said Paul Brock President of VendTek.
Since January 2002, VendTek has been developing a partnership with The UFO Group, ("UFO") based in Beijing, China. UFO is a privately held group of companies involved in a wide range of commercial ventures and with significant interests in mobile telecommunications.
For more information, or to receive news and updates as they become available, please contact Samantha Haynes at (604) 940-2239.
About UFO Group (www.groupufo.com) UFO Group is a technology and marketing group who operate the e-Fresh(tm) System in Beijing, China and are expanding the distribution network and operating areas for the system into the most densely populated areas of China.
About VendTek and Now Prepay (www.vendteksys.com / www.nowprepay.com) VendTek Systems Inc. develops, markets, and sells e-Fresh(tm), which is a suite of software applications use to electronically distribute prepaid telecommunication products and financial services. Commercialization of e-Fresh(tm) under license is VendTek's strategy to create sustainable and recurring revenues.
VendTek's customers and its subsidiaries, Now Prepay Corp. and VendTek Systems Technologies (Beijing), 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 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 since it is completely electronic and eliminates physical cards and vouchers.
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.