QI Systems Inc. Sees Uptrend in Fluid Management Projects

Business Wire, July 12, 2005

DALLAS & RICHMOND, British Columbia -- QI Systems Inc. (OTCBB:QIIIF), today announced that one of its municipal customers has recently issued a purchase order for additional equipment, adding capacity to its QI-installed, automated bulk-water control system. With water becoming an ever-more-precious commodity, both public and private water utilities face growing pressure to find better ways to monitor customer utilization.

QI delivered its first automated bulk-water control system in mid-2002. Among its first customers were northern Canadian cities needing installations serving industrial users, as well as residential consumers. Consistently reliable service has been provided, even with winter temperatures ranging as low as -40F. These systems now include TCP-IP communications to allow control and data-collection from a remote computer.

Some QI installations have displaced coin-operated bulk-water dispensing stations, providing greater reliability, reduced operational cost, reduced vandalism, more convenience and better management control and reporting. The Colorado cities of Ft. Collins and Loveland use QI control systems for their Ranch-Water sales, an automated system used by agricultural, industrial and private customers. In other installations, retail stores use QI control systems for water vending machines, allowing 24/7 access for customers to refill one or five gallon containers.

All QI water control systems are vertically integrated, using stored-value, "smart"-card technology. The smart cards are supplied by, and the payment and control terminals are designed and manufactured by, QI Systems. QI also designed and manufactures the accompanying card sales and reload machines.

At the other end of the water spectrum, QI equipment controls wastewater disposal at sanitary dumping stations. This highlights the versatility of QI's control systems. If a fluid must be controlled, QI can supply systems to monitor, manage and generate revenue from that control function.

Fluid management systems integrators and equipment distributors are invited to contact QI Systems Inc. for more information.

QI Systems Inc. designs, develops and markets chip-based card payment and tracking solutions to a number of industries. Products and core competencies include "smart"-card and stored-value systems, security protocols, data communication 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.