Future in Parking Looks Bright for QI.

DALLAS & RICHMOND, British Columbia -- With the landscape of the on street parking market in the USA about to see a dynamic shift, QI Systems Inc. of Richmond B.C. and Dallas (OTCBB:QIIIF) is positioned to become a major supplier of unattended point of sale equipment and solutions to this growing market. Cities like Portland, Seattle, Baltimore, Houston, Buffalo, Boston and San Diego to name a few are replacing single space parking meters with pay-by-space or pay-and-display multi space on street meters accepting not only coins but also credit cards, city issued smart cards and dollar bills.

QI personnel have a long history of innovation in the parking industry. It dates back to the mid eighties when QI's Rick Murray introduced the world's first pay and display meter that would accept credit cards. In recent years QI has designed smart card systems and hardware platforms for some of North America's leading pay and display companies such as Cale, Parksmart and Lexis (now Cubic Parking).

Cale Systems approached QI in May of 2000 with a request to design a payment terminal that would work with their MP 102 to accept both coins and the Mondex smart card. QI quickly responded to the Cale request and within a few weeks a working unit was on display at the IPI show in Fort Lauderdale and soon after was installed in the City of Sherbrooke and at Bishops University. In 2001 Cale was back with another idea and from those discussions QI designed and manufactured the first low power Hybrid payment terminal to accept smart card and credit cards in a single unit. To date over 1500 of these units have been installed in cities and campuses throughout North America.

QI and Cale have worked together to provide smart solutions for the parking industry worldwide. The QI hybrid terminal for Cale supports multiple smart card payment schemes including ParkSmart's SmartCity, Touch Technologies, Telus One Touch, EFM and QI's own card schemes as well as credit cards. It is installed in Cale MP 104 and MP102 meters.

At QI we look forward to working with our parking industry partners to supply card payment innovations as the North American cities adopt multi space metering solutions on a large scale.

QI Systems Inc. designs and sells chip-card solutions for various industries. Products and core competencies include smart cards and stored value systems, security protocols, data communications, software design and hardware manufacture.

Matters discussed in this announcement are "forward-looking statements" and are subject to certain risks and uncertainties. Consider all risk factors carefully when evaluating forward looking statements as actual results may differ materially from current expectations. QI Systems undertakes no obligation to publicly update such forward-looking statements.

For more information about QI Systems Inc., visit www.qisystems.ca.