DataWave & Lipman Sign Joint Venture Agreement.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Sept. 21, 2000

DataWave (CDNX:DTV.)(OTCBB:DWVSF)

DataWave Systems Inc. and Lipman USA announced today that they have signed a joint venture agreement.

The joint venture company, DLTO Co, LLC, will develop, market, own and operate ATM and point of sale activation systems. Prototype Lipman ATMs integrating DataWave's point of sale activation technology to dispense prepaid phone cards have already been installed at selected sites. Field tests are expected to continue for three months, but initial results are very encouraging.

"We are already benefiting from our association with Lipman. Working closely with them on the prototype ATMs has increased the pace of our technology development and generated several new ideas. We anticipate that this is only the first step in a long and rewarding partnership," said Josh Emanuel, DataWave President & CEO.

The combined technology gives the joint venture an edge when approaching markets where the placement of two separate machines may not have been viable and creates additional opportunities for DataWave to distribute prepaid products.

Mony Zenou, President of Lipman USA, said, "Our two teams have worked closely together over the past few months, resulting in the successful development of the prototype system. We are pleased with the progress that has been made and are excited by the first results from the field tests."

About Lipman USA

Lipman USA Inc. (http://www.lipmanusa.com/ ) is a subsidiary of Lipman Electronic Engineering Ltd. (http://www.lipman.co.il/ ). Founded in 1974, Lipman Electronic Engineering Ltd. is a high technology publicly held company, with its shares traded on the Tel-Aviv Stock Exchange (TASE). Lipman Electronic Engineering Ltd. is a leading global company involved in the development, production and marketing of a broad range of point-of-sale (POS) terminals, smart cash registers, peripherals and "tailor-made" electronic transaction software.

Lipman USA is the primary distributor and software developer of the Nurit product line and is the leader in selling wireless point-of-sale terminals to the North American marketplace. Its products offer a simple and quick interface for EDC (Electronic Data Capture) and POS applications for numerous third party providers. Electronic payment applications serve business areas such as retail, restaurants, address verification (AVS), electronic benefits transfer (EBT), medical eligibility verification and private label programs.

About DataWave (http://www.datawave.ca)

DataWave Systems designs, develops, produces, owns and manages a proprietary, intelligent, automated direct-merchandising network, comprised of free-standing intelligent machines (DTMs) and over the counter "swipe" units (OTCs) connected to the gateway and database software through a wireless and/or landline wide area network. This unique leading-edge technology provides for point-of-sale activation, cash/debit/credit card acceptance, detailed reporting and 24/7 remote self-diagnostic troubleshooting, making it virtually maintenance-free. The proven success of the DataWave System has won many prestigious national accounts in the US prepaid calling card market.

The company is now poised to capitalize on the flexibility of its System by augmenting its strategic partners and product range to meet the diversified and changing needs of the prepaid market.

DataWave Systems Inc. John Gunn, General Manager, CFO 

This news release may include statements that constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.