DataWave Earns US$119,964 During Its Third Quarter.

Business Editors

VANCOUVER, British Columbia, Canada--(BUSINESS WIRE)--Feb. 7, 2003

(TSX-V:DTV)(OTCBB:DWVSF): DataWave announces net income of US$119,964 for the third quarter ended December 31, 2002 compared to net income of US$22,667 for the same period last year, an increase of 429%. Revenues increased 47% to US$4,798,270 from US$3,273,335. Net income for the nine months ended December 31, 2002 is US$351,149 compared to US$124,820 for the same nine months last year an increase of 181%. Year to date fiscal 2003 revenues increased 46% to US$14,229,641 compared to US$9,777,721 for the same period last year.

DataWave's Canadian operation, which generates all its revenues from the sale of prepaid long distance and prepaid wireless phone cards and PINs to retailers, provided US$8,312,848 of revenues for the nine months ended December 31, 2002. Revenues for the 5-1/2 month period July 13, 2001 to December 31, 2001 were US$3,602,143. U.S. revenues of US$5,916,793 were down US$259,000 from the prior year's first nine months. The U.S. Prepaid operation experienced net agency revenue (gross proceeds less cost of time) growth of 14%, to US$4.6 million, from the sale of prepaid calling cards through its network of intelligent vending machines.

DataWave announced in the prior quarter its intention to become an intermediary between national Canadian prepaid cellular providers and certain national convenience stores in order to exploit its Point of Sale (POSA) activation technology. The Company has deployed 356 terminals distributing prepaid cellular PINs in Canada as of December 31, 2002. These terminals dispensed PINs with a gross value of US$1.3 million in the quarter ended December 31, 2002 and US$1.5 million since the program began. The Company recognized net agency POSA cellular revenue of US$35,000 in the quarter ended December 31, 2002 and US$39,000 year to date.

"We are pleased to report another profitable quarter and to have successfully used our technology to launch the Canadian prepaid cellular POSA program," said DataWave Chairman and CEO Josh Emanuel.

The Company announced in December 2002 that it had entered into an agreement with National Money Mart Company in Victoria, B.C., the largest convenience-based retail financial services company in Canada, to develop and distribute prepaid stored value cards. Under this agreement, DataWave and Money Mart have established a joint venture called NEXTWAVE CARD CORP. that will offer prepaid and stored valued cards to Money Mart's 287 corporately owned, franchise and agent locations. Beta testing is expected to begin in the quarter ending March 31, 2003. If proved successful in Canada, Money Mart has an additional 1400 stores in the U.S., U.K. and Australia for NEXTWAVE expansion in the future.

The Company announced in November 2002 that it has signed a twenty-year international licensing agreement with Lipman USA Inc. Under this agreement, Lipman can use DataWave's card dispenser technology to enable them to distribute and recharge multiple prepaid products via their entire ATM product line. Beta testing of a bank issued stored value card from an ATM kiosk is expected to begin in the quarter ending March 31, 2003.

The Company announced in October 2002 that its relationship with Coinstar had been restructured. Under the new agreement, Coinstar will be able to use certain elements of DataWave's technology and will pay DataWave a royalty for certain future prepaid products distributed through Coinstar Centers. Royalties to date have not been material. The primary objectives of the 52 store Prepaid MasterCard pilot, including analysis of consumer acceptance and operational requirements for machine-based card distribution and reload, have been concluded. The parties have been unable to come to agreement on full production rollout of this program.

In December 2002, Integrated Data Corp. ("IDC"), a Delaware corporation (OTCBB: ITDD) announced that it had purchased 17,949,000 freely tradable shares of DataWave Systems, Inc. from six selling shareholders consisting of various individuals and companies, who acquired the shares in a distribution that same day from Cash Card Communications Corp., Ltd, a privately held Bermuda company. In January 2003, Integrated Data Corp. announced an additional private purchase of 4,027,381 freely tradable shares of DataWave Systems, Inc, bringing IDC's total interest in DataWave to 50.072%.

DataWave will continue evaluating opportunities that incorporate the existing DataWave technology infrastructure. The DataWave financial middleware infrastructure, integrated with financial banking partners, affords opportunities to deliver Prepaid Cash Card programs to multiple niche markets. The DataWave Point of Sale ("POSA") activation technology, integrated with Prepaid Wireless, Prepaid Internet, and PrePaid Voice Over Internet providers, can offer distribution of POSA products to new and existing customers. DataWave is actively working on product development in these areas.

DataWave will continue evaluating opportunities and will announce in the future any consummated agreements that will have a material impact on the Company.

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

DataWave has been an innovator and developer of prepaid and stored-value programs since it was founded in 1994. DataWave pioneered a system that allows for point-of-sale activation of high value, high shrinkage products, such as cash cards and phone cards. The System works equally well over the internet, through intelligent free-standing vending machines or with various card activation devices, including cash registers.

DataWave Systems Inc.

Marc L. Belsky
CFO

Legal Notice Regarding Forward-Looking Statements:

This press release contains "forward-looking statements". Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this release include statements regarding new prepaid and stored value card and POSA product opportunities. It is important to note that actual outcomes and the Company's actual results could differ materially from those contained in any forward-looking statements contained in this press release. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties such as when the travel industry, and the economy in general, will return to its pre-September 11th, 2001 level or a more robust level of activity, insufficient demand for and market acceptance of DataWave's present or future products, emergence of companies with competing or superior products and/or services, unforeseen changes in the software and hardware technology used in connection with DataWave's technology and products, the unforeseen delays or costs of entering new markets, technical difficulties in developing new products, the Company's ability to obtain a bank sponsor for prepaid cash card products and a BIN sponsor for POSA products; or the ability to obtain adequate trade payable terms or other means to finance these opportunities. Although DataWave believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable; there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Readers should also refer to the risk disclosures outlined in the Company's annual report and regulatory filings for the 2002 and 2003 fiscal year filed from time-to-time with the TSX, BC Securities Commission and SEC."

"DataWave" is a registered trademark of the Company. All other trademarks and trade names referred to are the property of their respective owners.

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