QI Systems Inc. Begins Shipment of $225,000 in Orders to Montreal Customer

Originally scheduled for delivery in September and December of 2005, the shipments were delayed to allow for design changes that will enhance functionality and improve manufacture ability. Delivery should be complete by the end of April 2006. The outlook for additional orders thereafter is excellent.

Smart cards are gaining considerable momentum in the $15+ billion parking industry. System operators are now opting for electronic payment strategies that also incorporate greatly improved data collection in parking equipment. Both QI and Cale are well-positioned to capitalize on this industry development.

The Smart Card Alliance, a not-for-profit, multi-industry association working to accelerate the acceptance of smart-card technology, recently reported that many key benefits are being achieved through the use of smart-card technologies for parking, including improved customer service, increased operator revenue, increased operational efficiencies, stronger controls and security, and expanding market opportunities.

Cale (Canada) has been a customer of QI Systems since the year 2000, when QI first developed card-payment technology for use in Cale pay-and-display parking meters in Sherbrooke, Quebec as part of the largest North American installation of the Mondex stored-value card system.

Since that time, QI has worked with Cale to develop and support several smart-card systems and also to support credit-card payment abilities in Cale parking meters. Working together, QI and Cale have delivered best-of-breed card payment technologies now being utilized by Cale's various government and private-sector customers.

About Cale Systems Inc.

Cale Systems Inc. is the wholly-owned Canadian subsidiary of Cale Access AB of Solna, Sweden. Established in 1955, Cale Access AB is now a leader in its field, with customer installations in over 30 countries worldwide. Its specialty is self-serve parking-revenue collection systems for both on-street and off-street use.

About QI

QI Systems Inc. designs and sells card payment solutions for various industries. Products and core competencies include smart cards and stored value systems, security protocols, data communications, software design and hardware manufacture.
Matters discussed in this press release may include “forward-looking statements” which are subject to certain risks and uncertainties. Consider all risk factors carefully when evaluating forward looking statements as actual results may differ materially from those expressed herein. QI Systems is protected from litigation regarding forward looking statements and undertakes no obligation to publicly update such forward-looking statements.