DataWave Systems Inc. Financing.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--June 9, 2000

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

DataWave announces that the financial results from the initial months of the current year have shown strong evidence of continued growth from 1999.

The current business shows steady revenue growth and is generating a positive cash flow. Working capital is in excess of $2 million, with cash and cash equivalents in excess of $2.2 million. This financial position allows the Company to continue the major joint venture agreement with Lipman USA as well as financing other development projects (see DataWave/Michigan National Bank announcement on May 24, 2000 and the Coinstar agreement announced on June 5, 2000).

As a result of this strong financial position, the Company and Atlantic Communications International Limited ("ACI") have agreed to terminate the private placement referred to in the news release on April 7, 2000.

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

DataWave designs, develops, produces, owns and manages a proprietary, intelligent, automated direct-merchandising network, known as the DataWave System, that the Company uses to distribute prepaid products. This unique leading-edge technology provides for point-of-sale activation, cash/credit card acceptance, detailed reporting and sales analysis, 24-hour self diagnostic troubleshooting and automatic inventory replenishment, making it virtually maintenance-free. The DataWave System has proven to be successful, resulting in alliances with leading telecommunications companies and winning prestigious national accounts in the United States prepaid calling card market.

With this strong foundation, DataWave is now poised to capitalize on the flexibility of its System by augmenting its product range to meet the diversified and changing needs of the prepaid marketplace. This expansion will see the Company aligning itself with a number of strategic partners in the short term.

The DataWave System is currently comprised of DataWave Merchandisers (DTMs), which are free-standing intelligent machines capable of dispensing multiple prepaid products, and over-the-counter "swipe" 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.

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.

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