(OTCBB: QIIIF) The Future Smart Card Technology -- ADV

["Canadian Connection" <connection@i-webmail.net>]

Title: Untitled Document

STOCK PROFILE

QI Systems, Inc.
Symbol OTCBB: QIIIF
Category: Technology
Shares Issued and Outstanding: 16,363,000
Float (Estimate): 3,500,000

QIIIF: QI Systems, Inc.

Looking Smart! Canadian Based QIIIF
Capitalizing on the Multi-Billion Dollar Smart Card Industry!

Last year our newsletter featured SLRXF, an emerging Canadian-Based pharmaceutical company at a price of $0.40 per share. SLRXF currently trades at $1.66 per share, a gain of 315%. The featured company in this report is QIIIF, another up-and-coming Canadian technology provider

It is estimated that nearly one third of the $8.1 trillion worth of cash transactions annually in the world's top 29 economies will eventually be conducted via smart cards. This would mean a tremendous savings for the world's economies. In the United States alone, an estimated $60 billion is spent annually by merchants, financial institutions, and the U.S. Government to handle, keep, and protect physical money. Smart cards are becoming an invaluable solution in the areas of national security, identity theft protection, and privacy. Our featured company QIIIF is the world leader in the top-to-bottom solutions for smart card applications in a global market expected to reach $16 billion by 2005.

CLIENT BASE AND STRATEGIC ALLIANCES

Companies that use QIIIF's Smart Card technology for their business solutions include:

Visa International, Bank of America, US Treasury Department, MasterCard International, IBM Corp., USA Today, Visa Canada, Maytag, GPT Payphones, Royal Bank of Canada, Nations Bank, First Union Bank, Mondex, Chase Manhattan Bank, British Columbia Corrections, GPT Payphones, Inc., Bank of Nova Scotia, Sun Trust Bank, Pepsi Venezuela, Canadian Forces, and numerous others.

In addition to the client list above QIIIF partners and affiliates include: VisaCash, Telus Corp., Cale Parking Euipment, Inc., Cardlogix, Edoc Systems, EFM, GemPlus, Jayd LLC., Mondex, Aurora Bar Code Technologies, and Touch Technology International.


CORPORATE SNAPSHOT

QI Systems, Inc. (OTCBB: QIIIF) is a Canadian corporation with headquarters in Richmond, British Columbia, Canada, and Colleyville, Texas, U.S. QIIIF designs hardware and software for the rapidly expanding smart card industry. The company is the world leader in top-to-bottom solutions for smart card applications in a wide variety of industries.

MARKET POTENTIAL

The Department of Defense has now issued 1.8 million Smart Cards and continues to issue up to 12,000 per day in more than 15 countries. Healthcare alone estimates that up to $70 billion of the $1.4 trillion healthcare costs for Americans is due to fraud. Dr. John Butterworth, president of Security Sciences, Inc., predicts that medical industry companies will use Smart Cards to thwart fraud. The gaming/casino industry is also turning to Smart Cards to more easily deposit, payout, debit, rate, and reduce theft. Other opportunities and growth prospects for smart cards are staggering. In the U.S. alone, there are more than 7 million vending machines with $37 billion in annual sales. Conversion of just 10% of these to smart card applications indicates a $400 million market. Laundry machines, newspaper boxes, copiers, parking, and transit offer other potentially lucrative opportunities.

FINAL CONSIDERATIONS

· QIIIF's SmartKit permits secure, conditional access, flexible multicard payment and data to be performed in a low-cost, easy-to-use manner.

· QIIIF is pursuing possibilities that will affect homeland and international security.

· QIIIF is the only company that met MasterCard and Visa's rigorous criteria for Smart Card technology.

· QIIIF announced that revenues increase in both of the first two quarters of 2004.

· A report from marketing consultants Frost & Sullivan on the global Smart Cards market predicts the number of cards in circulation could more than double from 1.75 billion in 2000 to 3.66 billion by 2004

RECENT NEWS AND UPDATES

QI Systems Receives Order from Cyberdyne Gaming
May 6, 2004 /PRNewswire-FirstCall via COMTEX/ -- QI Systems Inc. (QIIIF) of Richmond, British Columbia, Canada, the industry leader in smart card solutions, reported today that the company has received confirmation of a blanket order from Cyberdyne Gaming for SmartKit payment terminals and SmartKit Console value stations to be manufactured and delivered within the next year. Cyberdyne anticipates taking delivery of this initial supply of QI products in large lots for use in gaming installations throughout the United States. This initial order, valued at $400,000, is committed for delivery within one year. Both companies anticipate that the initial order will be fully deployed in a shorter period and the actual value of business during the year will be higher.

QI Systems and Cyberdyne Gaming Form Strategic Partnership
May 4, 2004 /PRNewswire-FirstCall via COMTEX/ -- Mr. Steven R. Garman, President and CEO of QI Systems Inc. (QIIIF) of Richmond, BC, Canada (a leader in smart card solutions), and Mr. Phil Lulek, CEO of Cyberdyne Gaming, Inc. of Phoenix, Arizona (a premier provider of gaming equipment), are pleased to announce that a multi-part strategic partnership agreement has been signed by the two companies. The agreement includes provisions for each company to distribute products of the other partner and is expected to create substantial new market opportunities for both companies.

QI Systems Forms New Subsidiary
Apr 27, 2004 (BUSINESS WIRE) -- QI Systems Inc. (QIIIF) , announced today that the company has formed a new United States corporation named QI Systems International, Inc. The new Texas based company will have a Dallas area business address. QI Systems International will operate as a wholly owned subsidiary of QI Systems Inc. (Canada) and will serve primarily as a vehicle for the formation of sales and marketing partnerships in the United States.

QI Systems Increases Global Marketing Efforts
Apr 20, 2004 /PRNewswire-FirstCall via COMTEX/ -- QI Systems Inc. (QIIIF) , the industry leader in smart card solutions, announced today that the company has launched a new sales and marketing effort, both domestically and internationally. The company is promoting its memory card technology utilizing informational programs, direct sales contact and an enhanced market presence. As a result, QI Systems is experiencing heightened market awareness and is currently being featured by two separate Web-based stock information services.

QI Systems Receives Production Release From Cale Systems
Apr 8, 2004 /PRNewswire-FirstCall via COMTEX/ -- QI Systems Inc. of Richmond, British Columbia, Canada (QIIIF) , the industry leader in smart card solutions, reported today that the company has received an immediate release from Cale Systems, Inc. for the production of a substantial number of hybrid payment terminals. The production release is part of a blanket order from Cale for 525 units received earlier this month. The units released for production represent sales revenue for QI Systems of approximately $150,000 US. Cale plans to take delivery of the remaining units before the end of the year and anticipates placing additional payment terminal orders with QI in the near future. The QI Systems readers are for use in Cale equipment being placed at sites throughout North America.

Another City Switches to QI Water Control System
Mar 11, 2004 /PRNewswire-FirstCall via COMTEX/ -- QI Systems, Inc. (QIIIF) , the industry leader in smart card solutions, is pleased to announce that it will be delivering a Ranch Water Control system during March to the City of Loveland, Colorado. The Loveland system is modeled on the Ranch Water Control installation done last year just a few miles up Highway 287 in the City of Fort Collins. Although the systems are visually identical, users will find that cards from one city will not be accepted at the other.

QI Systems Inc. Announces Improved 2nd Quarter Financials
Feb 25, 2004 /PRNewswire-FirstCall via COMTEX/ -- QI Systems Inc. (QIIIF) , 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.

QI Systems Receives Order from Cyberdyne Gaming
5/6/2004 (PRNewswire-FirstCall Via COMTEX) - QI Systems Recieves Oder From Cyberdyne Gaming. QI Systems, Inc. (OTCBB: QIIIF), the industry leader in smart card solutions reported today that it has received confirmation of a blanket order from Cyberdyne Gaming, Inc. …The initial order valued at $400,000.00 is committed for delivery within one year.

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