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Edited for Send2Press by Carly Zander


QI Systems Inc. Announces Improved 2nd Quarter Financials

Richmond, BC - February 25, 2004 /Send2Press Newswire/ -- QI Systems Inc. (OTC BB: QIIIF, TSX Venture Exchange: QII.U), the industry leader in smart card solutions, announced today that pursuant to the news release of February 9, 2004 regarding fiscal year 2003-2004 revenue, that 2nd quarter revenue increased by 10% over 1st quarter results. When compared to 2002-2003 results, the first two quarters of the current fiscal year equal approximately 68% of total revenue from the 2003 fiscal year.

Additionally, total expenses for the period were reduced by 31.5% from $504,971 to $158,937 which, in turn, resulted in a 79.9% reduction of operating loss from $462,560 to $93,036. This report marks the second consecutive quarter of improved financials for QI Systems Inc. which anticipates enhanced sales results throughout the remainder of 2004.

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.



• Previous News from QI Systems Inc.



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