VENDTEK SYSTEMS ANNOUNCES NATIONAL DISTRIBUTION AGREEMENT WITH TIM BRAZIL

VANCOUVER, Feb. 23 /CNW/ - VendTek Systems Inc. (TSXV: VSI) (the "Company" or "VendTek"), a developer and licensor of software for the global prepaid and financial services markets, is pleased to announce that its wholly owned subsidiary, Now Prepay Servicos de Informatica Ltda., has signed a national distribution agreement with TIM Brazil ("TIM"), one of Brazil's largest telecommunications operators.

TIM, a subsidiary of Telecom Italia, is one of the top four mobile phone operator in the country with over 51 million subscribers and 25% market share as at December 2010. TIM is the fastest growing operator in Brazil with 9.9 million new subscribers additions in 2010 (90% of which are pre-paid).  

In addition to mobile phone services, TIM offers innovative fixed and broadband solutions through its wireless network. Both fixed and broadband services have prepaid plans with similar recharge processes and needs for the subscribers.

The prepaid market in Brazil is expected to expand substantially, growing from just $1.7 billion in 2009, to more than $17 billion in 2017.1

VendTek currently has ten employees in two offices (Sao Paulo and Bauru) and is continuing to expand its operations. The Company's strategy in Brazil for 2011 includes broadening its product offering by securing additional distribution agreements for other prepaid products including mobile recharge; other prepaid telecommunications products (such as land-line and long distance products); financial products (such as bill payment); and other value added services. The Company expects to launch its proprietary e-Fresh™ network in the second quarter of fiscal 2011.

Doug Buchanan, President and Chief Executive Officer of VendTek Systems, said, "we are already supplying products from two of the top four mobile telecommunication operators in Brazil. The market size for prepaid mobile subscribers in Brazil is estimated to be 203 million2 and the carriers are suggesting to us that their markets are underserved. Our national distribution agreement with TIM is further evidence that telecommunications companies believe that we can assist them in providing quality service to their subscribers."

About VendTek
VendTek develops and licenses automated transaction system software and supporting technologies. 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 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 2010 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.

1 http://www.paymentsnews.com/2010/07/mastercard-releases-prepaid-market-sizing-report.html
2 http://www.teleco.com.br/ncel.asp



SOURCE VendTek Systems Inc.

For further information:

Samantha White at 604-805-4653 or 1-800-806-4958 or investment@vendteksystems.com.

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