DataWave Secures Agreement with National Prepaid Phonecard Company.

VANCOUVER, B.C.--(BUSINESS WIRE)--June 6, 1996--(DTV - VSE) DataWave Vending Inc. announced today that it has entered into an exclusive revenue sharing agreement with Canada Telecom Network Inc. (CTN) of Montreal. This agreement is expected to result in the placement of up to 500 DataWave Telecard Merchandisers (DTM's) across Canada in the first year. DataWave will generate a minimum of 50% of an estimated $3 - 5 million in total revenues between the two parties as a result of the agreement. The percentage split of revenue is dependent upon CTN's ability to meet certain prescribed performance targets set by DataWave.

"We find that DataWave's technology is compatible with our needs and adds a new dimension to the services which we offer our customers," said Benoit Briere, President of CTN. CTN, a national prepaid phonecard company, has a distribution network of over 6,000 point of sale locations including 7-Eleven, Shell-Canada, VCS Group Ltd., Greyhound Canada, Wal-Mart, and Hallmark. CTN has also implemented successful PhoneCard programs with Pepsi Canada, Proctor & Gamble, Borden Catelli, Best Foods, Sealtest/Haagen Dazs, and Esprit Canada.

DataWave has identified CTN as the quickest and most cost effective medium to reach prepaid calling card customers in Canada. The agreement is advantageous to DataWave because of CTN's leading distribution position in Canada, reputation, existing marketing infrastructure, and client base. Under the agreement, DataWave is responsible for installation and maintenance of DTM's, while CTN will contribute marketing, identification of DTM locations, and development of PhoneCard programs.

DataWave's CTN revenue sharing agreement in Canada, along with the Company's distribution agreement with MCI Telecommunications in the U.S., will provide comprehensive North American market coverage. The Company continues to devote the majority of its financial and marketing resources towards the U.S. prepaid calling card market, estimated at approximately 20 times the size of the Canadian market.

DataWave's DTM and Over-the-Counter (OTC) programs exceed the capabilities of competitive vending technologies due to better inventory management, lower carrying costs, and increased security against shrinkage. DTM's are DataWave's proprietary intelligent electronic merchandising systems with a proprietary "real time" feature called Point-of-Sale Activation (POSA). The OTC program allows for mass distribution of prepaid calling cards in retail environments which do not lend themselves to the placement of DTM's. The hand-held OTC device activates time by swiping the calling card through a magnetic reader.

DataWave installed 12 DTM's at the Seattle-Tacoma International Airport, marking the first contracts generated from DataWave's distribution agreement with MCI Telecommunications. DataWave has also signed agreements with Amtrak, Denny's and K-Mart.

CONTACT: DataWave Vending Inc.

Peter Hough, 604/8741-1302 or

fax [phone]

or

VMW Inc.

Vicki Miles Weiner, 212/605-3140