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NOTICE: THIS IS ARCHIVAL CONTENT AND LIKELY OUT OF DATE.

Edited for Send2Press by Carly Zander


QI Systems Inc. Announces Second Quarter Revenue Increase

Richmond, BC - February 9, 2004 /Send2Press Newswire/ -- QI Systems Inc. (OTC BB: QIIIF, TSX Venture Exchange: QII.U), the industry leader in smart card solutions, announced today that second quarter revenue increased by ten percent over first quarter results. This marks the second consecutive quarter of growth for the company and brings total sales to date for fiscal 2003-2004 to $220,000 US. When compared to 2002-2003 results, the first two quarters of the current fiscal year equal approximately 68 percent of total revenue from last year.

QI Systems Inc. President and C.E.O. Steve Garman said, "We believe that our internal corporate reorganization and more aggressive posture in the marketplace are beginning to produce tangible results. We anticipate that 2004 will be a record sales year for the company and will signal QI's successful emergence as a premier smart card solutions provider. While the company will continue to provide high quality OEM payment terminals to our key customer base for parking, vending and other applications, QI Systems will at the same time be expanding into smart card system solutions that afford the company significant long-term growth potential."

QI Systems Inc. (http://www.qisystems.ca) designs hardware and software for the rapidly expanding smart card industry. The company is a world leader in supplying top-to-bottom solutions for smart card applications in a wide variety of industries. QI Systems Inc. has a high level of expertise in delivering stored value solutions for specialized needs.

The TSX Venture Exchange does not accept responsibility for the adequacy of this news release and has not investigated the validity of these claims.

Approved on behalf of the Board.

Steven R. Garman, President & CEO, QI Systems Inc.



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