DataWave Announces Changes On The Board Of Directors.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Feb. 17, 2000

DataWave Systems Inc.(CDNX:DTV.)(OTCBB:DWVSF) announced today that Clive Barwin has resigned as a Director of the Company.

Clive, together with Peter Hough, who resigned as a Director of the Company on January 18th, started DataWave in 1994. The Company first offered prepaid calling card services in 1996. Clive and Peter built the Company to the point that by 1999, the Company had placed more than 800 of its DataWave Merchandisers (DTMs) and more than 300 Over-The-Counter units (OTCs) and seen revenues grow to more than US$11 million. Once the financial restructuring was completed in mid 1999, Clive and Peter stepped back from the day-to-day operations and put a new management team in place.

&uot;It has been an exciting time for Peter and myself as we have seen DataWave grow into a viable business with the development of technologies that put the Company in a unique position. The Company has the capability to further develop its technologies and to move into new markets. With a new management team in place, we have left the Company in good hands and expect that continued development will ensure the growth of the business&uot;, said Clive.

&uot;Clive's vision and drive have been instrumental in taking DataWave to its position as an industry leader in the provision of technology systems for the distribution of prepaid products. These endeavors and efforts of Clive, especially in the early days were vital in overcoming initial technological challenges.&uot; said Josh Emanuel, President and CEO.

Effective February 16, 2000, Verne Pecho was appointed a Director of the Company. Verne is Vice President, Finance and Administration and Chief Financial Officer for MDSI Mobile Data Solutions Inc. Verne has many years' experience in finance and management for technology companies and will be an asset to Datawave's Board of Directors.

&uot;I look forward to working with DataWave's other directors to build on the Company's current financial position to further develop and grow the Company as an industry leader&uot;. said Verne.

       The Company's Board of Directors is as follows:

Chairman of the Board

Abe Carmel  Director and CEO of Atlantic
Communications International, Ltd.

Directors:

Garth Braun Chief Executive Officer of Karmel Capital Corporation

Verne Pecho VP, Finance and Administration and Chief Financial
  Officer for MDSI

Josh Emanuel President and Chief Executive Officer of DataWave

John Gunn General Manager, Chief Financial Officer and Secretary
  of DataWave

About DataWave

DataWave designs, develops, produces, owns and manages a proprietary, intelligent, automated direct-merchandising network known as the DataWave System. The Company uses the DataWave System to distribute prepaid calling cards. The DataWave System is comprised of DataWave Merchandisers (DTMs), which are free-standing intelligent machines capable of dispensing multiple prepaid products, and over-the-counter &uot;swipe&uot; units (OTCs) for point-of-sale prepaid retailing. Both of these are connected to the Company's proprietary communications gateway and database software through a wireless and/or land line wide area network. The first DTM was placed early in 1996 and the first OTC device later the same year. During this implementation and roll out, DataWave's intelligent DTM concept has proven to be successful in winning major accounts in the United States prepaid calling card market.

On Behalf of the Board of Directors DataWave Systems Inc.

John Gunn, General Manager, CFO 

This news release may include statements that constitute forward-looking statements. Please be cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of any number of factors, including the risk factors contained in the Company's disclosure documents.

&uot;DataWave&uot; together with design is a registered trademark of the Company.