QI Systems Receives Additional Order from Cale Systems for Parking Payment Solutions; Company Expects Record 2007 Revenue as Momentum Builds

DALLAS--(BUSINESS WIRE)--Aug. 29, 2006--QI Systems Inc. (OTCBB:QIII), a leading developer and integrator of contact and contactless card payment, access control and tracking solutions, today announced the Company has received a new order from Cale Systems, Inc., the North American subsidiary of Cale Access AB of Sweden. The order, valued at approximately $200,000 for QI Hybrid card payment terminals, will be used in Cale self-serve, multi-space parking equipment currently being deployed in a major installation in Baltimore, Maryland. In addition to Baltimore, Cale is currently providing parking equipment in both San Diego and Truckee, California, and also in Portland, Oregon.

Cale Systems Inc.'s President, Pierre Barre remarked, "Cale has come to rely on the high-level expertise provided by QI Systems and is delighted to once again call upon QI to assist us as we bring our uniquely designed, multi-space parking solutions to new communities across North America."

“Cale has come to rely on the high-level expertise provided by QI Systems and is delighted to once again call upon QI to assist us as we bring our uniquely designed, multi-space parking solutions to new communities across North America.”

Steven R. Garman, President and Chief Executive Officer of QI Systems, stated, "We are extremely pleased to extend our working relationship with Cale and look forward to additional orders as we continue to expand our market presence."

Mr. Garman continued, "This most recent order from Cale comes to QI Systems immediately following the receipt of a $270,000 order for the development of a card-managed Community Bicycle System to be installed in a large Midwestern city. Additionally, the Company recently received a new order from USA Today for the Collegiate Readership Program. QI Systems also announced the signing of an on-going contract with Smart Centric Technologies of Ireland, of which the development of Phases One and Two are presently under way. Couple this work with the referrals being generated by our relationship with HID Global, Access ID and other new partnerships currently being considered, it is clear that QI Systems is headed toward a record revenue year."

About QI Systems:

QI Systems Inc. develops and markets innovative chip-based card payment and tracking solutions for a number of industries as well as national, state and local government agencies. QI's products and core competencies include smart-card and stored-value systems, security protocols, data communication software design and hardware manufacture. For more information about QI Systems Inc., visit http://www.qisystems.ca/.

Matters discussed in this press release 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.