QI Systems Now Supporting Parcxmart(TM) Technologies Inc. Payment Solutions; Revenue-Producing Installations Anticipated Shortly

The QI Hybrid is the payment-terminal series designed for use in the parking industry. Integration of the patent-pending Parcxmart payment solution with the QI Hybrid terminals means that Parcxmart cards can now be accepted in Cale multi-space meters and other devices. Customer testing of the Cale meter with Parcxmart card payment is now proceeding, with revenue-producing installations anticipated shortly.

The development contract with Parcxmart (http://www.parcxmart.com), a New Hampshire-based electronic-payment firm specializing in small-dollar transactions, was previously announced by QI Systems on August 2, 2005. Parcxmart offers what is currently the only smart-card payment solution in the U.S. that combines secure transaction management, interoperability among cities and multiple merchants, and interoperability with existing payment networks. It also has the potential for other multi-application exchanges.

Utilizing QI Hybrid terminals will create many new opportunities for Parcxmart. QI can now support the Parcxmart system in applications ranging from newspaper vending boxes to high-end machines such as parking pay-on-foot stations manufactured by Scheidt & Bachmann.

Parcxmart's president and CEO, John Regan, stated, "Parcxmart is developing a network of strategic relationships and partnerships which will allow us to aggressively promote and deploy the Parcxmart payment system throughout the nation. We are excited by the opportunities for parking and for other unattended POS applications of our system using QI payment terminals."

Richard Murray, P.Eng., senior vice president and general manager of QI Systems Inc., commented, "We are very pleased about our developing relationship with Parcxmart. The Parcxmart team is pursuing the vision of interoperable stored-value technology as the preferred means of payment for small transactions. They are doing today what we believed the banking community would do years ago."

Murray added, "We believe that their business model, using parking as their first application, is the perfect fit and will achieve rapid success, because stored value offers clear and present economic advantages over other means of payment for parking."

About Parcxmart Technologies Inc.

Parcxmart Technologies Inc. has developed a patent-pending electronic payment solution, utilizing a branded smart card that also securely manages loyalty points for customer rewards programs. The Parcxmart card can be used for parking and for a wide array of other small-payment applications, from newspapers to double-mocha lattes at the local coffee bar. The Parcxmart small-purchase card solution is a convenient, one-card alternative to coins and cash. Now in use in San Jose, CA and New Haven, CT, the Parcxmart card is featured in an article in the July/August 2005 issue of Card Technology magazine.

About QI Systems Inc.

QI Systems Inc. designs, develops and markets chip-based card payment and tracking solutions for a number of industries. Products and core competencies include smart-card and stored-value systems, security protocols, data communication software design and hardware manufacture.

Matters discussed in this announcement 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.