The hardware sale of approximately $200,000 is expected to be the first of several such orders for QI Systems' innovative QiWave(TM) contactless payment technology designed for use in a wide variety unattended applications. QiWave provides a one card payment solution for devices such as laundry equipment, vending machines, printers, copiers and parking equipment, using both contact and contactless cards.

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.