Mr. Lee ends a short retirement to assist QI Systems, having previously served as CEO and Chairman of Applied Wireless Identifications Group (known as AWID), a corporation he founded in 1997. At AWID, Mr. Lee developed the company started as an engineering oriented organization into a profitable, market-focused operation with clear technology leadership. Under his direction, AWID reported twelve consecutive quarters of profitability and was twice honored as a Rising Star Company in the Deloitte Technology Fast 500.

Mr. Lee managed the successful introduction of AWID's multi-protocol RFID readers to the supply/logistic markets, and earned AWID the title of "the company most likely to be successful in the 2004 IBD Network under the radar competition." Prior to founding AWID, Mr. Lee was served as Vice President and General Manager of Electronics Systems Division (ESD) of Aeroflex Labs, which specialized in the development of radar receivers, weather radars and microwave landing receivers. Mr. Lee holds degrees in BSEE from the University of Kansas and MSEE from the University of Massachusetts. His background and complete list of accomplishments can be found on QI System's web site at www.qisystemsinc.com.

Robert McLean, CFO and COO, states: "I am delighted to have Donny Lee join QI Systems. His background in contactless technology combined with his impressive record of accomplishments makes him the perfect addition to QI's outstanding engineering team. We are now well positioned to take full advantage of the new product opportunities awaiting us."

About QI Systems:

QI Systems Inc. develops and markets innovative chip-based card payment and tracking solutions for a number of industries as well as national, state and local government agencies. QI's products and core competencies include smart-card and stored-value systems, security protocols, data communication software design and hardware manufacture. For more information about QI Systems Inc., visit http://www.qisystemsinc.com

Matters discussed in this press release are "forward-looking statements" and are subject to certain risks and uncertainties. Consider all risk factors carefully when evaluating forward-looking statements, as actual results may differ materially from current expectations. QI Systems undertakes no obligation to publicly update such forward-looking statements.