DataWave Earns US$591,000 In Fiscal Year 2002.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--June 11, 2002

DataWave Systems (OTCBB:DWVSF)(TSX VENTURE:DTV) announces net income of US$590,638 for the fiscal year ended March 31, 2002 compared to a (US$633,295) loss for the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) reached US$1,061,312 for the 2002 fiscal year compared to a negative (US$58,422) for the year ended March 31, 2001. Revenues increased 95% to US$13,291,001 from US$6,818,968.

DataWave considerably expanded its involvement in the Canadian prepaid long distance telephone market by purchasing AT&T's Canadian prepaid card business in July 2001. This business has generated revenues of US$5.3 million since July 13, 2001, the date of acquisition. The Company experienced net agency revenue (gross proceeds less cost of time) growth of 25%, to $5.6 million, in the United States from the sale of prepaid calling cards through its network of intelligent vending machines. A significant reason for this growth was renegotiating lower rates on the cost of time. Recharge and Point of Sale revenues more than doubled during the year.

A new accounting rule issued in December 2001 by the Canadian Institute of Chartered Accountants entitled "Reporting Revenue Gross as a Principal versus Net as an Agent" ("EIC 123") was adopted by the Company on a retroactive basis effective April 1, 2001 with the effect that revenues and cost of revenues were each decreased by $2,002,312 and $2,633,359, respectively for the years ended March 31, 2002 and 2001. This change in accounting policy had no effect on previously reported net income or loss or income (loss) per share for any prior year.

Mr. Emanuel, CEO reports, "We are pleased with the profitable results and growth in sales for the year. We have identified several prepaid opportunities that leverage the existing DataWave technology infrastructure. The DataWave Point of Sale ("POSA") activation technology, integrated with Prepaid Wireless, Prepaid Internet, and PrePaid Voice Over Internet Protocol, offers new distribution of POSA products to our new and existing customers. We continue to actively work on product development in these areas." DataWave will continue evaluating opportunities and announce any agreements that will have a material impact on the Company.

Net income in the 4th quarter included a $384,000 reserve adjustment that had been established in a prior year that has been determined will not have to be paid.

in US$000's
                             3 months ended         3 months ended

                                March 31,              March 31,

                                  2002                   2001
----------------------------------------------------------------------
Revenues                         3,502                  1,713
----------------------------------------------------------------------
EBITDA                             579                     70
----------------------------------------------------------------------
Net Income (loss)                  466                    (75)
----------------------------------------------------------------------
Net Income (loss)
per share                      $ 0.011               $ (0.002)
----------------------------------------------------------------------
Net Income (loss)
per share fully diluted        $ 0.011               $ (0.002)
----------------------------------------------------------------------

in US$000's
                               year ended             year ended

                                March 31,              March 31,
                                  2002                   2001
----------------------------------------------------------------------
Revenues                        13,291                  6,819
----------------------------------------------------------------------
EBITDA                           1,061                    (58)
----------------------------------------------------------------------
Net Income (loss)                  591                   (633)
----------------------------------------------------------------------
Net Income (loss)
per share                      $ 0.013               $ (0.014)
----------------------------------------------------------------------
Net Income (loss)
per share fully diluted        $ 0.013               $ (0.014)
----------------------------------------------------------------------

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

DataWave has pioneered the concept of online, point-of-sale activation through a vending unit, ensuring the secure distribution of high value, high shrinkage prepaid products, such as cash cards and phone cards, since it was founded in Vancouver, British Columbia in 1994.

Wireless communications are combined with point-of-sale technologies in the DataWave System to enable it to process transactions, accept a variety of payment methods and generate a number of different reports aimed at assisting the customer. The System works equally well over the Internet, through intelligent free-standing vending machines (DTMs) or with over-the-counter "swipe" units (OTC). The Company has placed over 2,000 DTMs, OTCs and traditional vending machines and provides prepaid card 'batch activation' services to an additional 500 sites. The Company also wholesales prepaid phone cards to over 8,000 retail locations in Canada.

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 card 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 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, or the Company's ability to obtain a bank sponsor for prepaid cash card products and a BIN for POSA products. 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 2001 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."