Rapidtron Provides Second Quarter Business Update; Highlights Include Record Sales and 2004 Guidance.

Business Editors/High-Tech Writers

COSTA MESA, Calif.--(BUSINESS WIRE)--June 14, 2004

Rapidtron Inc. (OTCBB:RPDT), a provider of Smart card access controls, today announced projected revenues of $1.0 million for second quarter, 2004. According to year-to-date figures released by the company, there are a record number of fitness installations, creation of new resort sales, and signing of a major university in the United States.

According to President and CEO John Creel, the company expects to place its access control systems in more than 70 new clubs during the second quarter. "The total installation base will be almost 165 health clubs by the end of the quarter, and we anticipate record revenue of $1.0 million for the period. The current fitness market backlog is over 60 units, and we expect to have systems installed in 300 clubs by the year-end," Creel said. Installations include Bally's, Gold's Gym, Super Fitness and California Family Fitness, according to Creel.

Creel noted that the success of Rapidtron systems has exceeded the expectations of the owners and managers of large chains as well as even a small club in Lewiston, Maine.

"Most of the clubs have recovered the cost of the system within 30 days, and we expect our access control system to become a new industry standard." Creel added: "We are beginning to see the acceptance of Smart technology as two Gold's Gyms ordered our Smart key fobs for all their members. There are over 5 million aggregate members within the clubs that we have started to install."

With the previously announced addition of Chris Perkins, vice president -- Sales, Resorts and Amusement, the company is in negotiation with six winter resorts including one as a beta site for Rapidtron's new biometric solution for validation of season's passes. Transferability of season's passes is one of the resort industry's major ticketing and administration problems. Perkins stated: "Since our participation in the RTP Conference in March and the NSAA Trade Show in May, we have received tremendous response to our new, single-lane system and programs dealing with transferability. There are over 300 potential resorts in North America and the need for our system is finally being realized as more resorts are dealing with problems in hiring minimum wage personnel and problems with validation of passes including transferability."

Based on the success of the access control systems placed at the University of California at Berkeley (UCB) and the University of California at Los Angeles (UCLA), the company met with 38 universities in attendance at the NIRSA trade show in May, a trade association meeting of university recreational and health center administrators. Creel indicated that there was "tremendous response from some of America's largest universities, and we are in the process of sending out proposals to at least six institutions for installation in 2004."

Terry Curtis, vice president, Universities, is supervising the sales for this target market.

About Rapidtron

With headquarters in Costa Mesa, Rapidtron has established itself in the North American marketplace by currently providing its Smart card access control systems to Copper Mountain in Colorado and Park City Mountain Resort in Utah, and its bar code access system to the University of California at Berkeley, UCLA, and several leading fitness clubs. Rapidtron has forged a strategic partnership with AXESS AG, a European (Austria) corporation. AXESS AG is at the forefront of Radio Frequency Smart card technology and has installed over 2,500 Smart access gates and 1,500 point-of-sale systems to transit companies and resorts in Europe. Rapidtron intends to become the leading provider of Radio Frequency (RF) Smart card access control and ticketing/membership systems by providing the premier technology for operator-free entry and exit turnstiles. For additional information, visit: www.rapidtron.com.

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated.