DataWave Installations at Pace Bus are Well Received

    VANCOUVER, B.C.--March 2, 2001--DataWave Systems (OTCBB:DWVSF)(CDNX:DTV)

    Testing of the DataWave installations at Pace, the suburban bus division of the North East Illinios Regional Transportation Authority, is progressing, generating strong results.
    DataWave has installed its intelligent machines at strategic locations during the past three months. These machines are dispensing two different types of bus passes, enabling Pace Bus customers to purchase either Pace 30-Day passes or Pace/CTA 30-Day passes with cash or a credit card. Based on the positive results and success of this initial trial, DataWave will be launching a marketing program targeting further expansion of our intelligent machines with other transit companies.
    According to Bill Turner, VP Business Development of DataWave, "We are pleased with the results of this test to date and have found a strong marketing partner in Pace Bus. The successful introduction of our proven technology to this new market has created opportunities for developing additional revenue streams from multiple business ventures," he said.
    The intelligent vending machines communicate via the BellSouth Mobitex network to DataWave's proprietary host gateway to allow for on-line credit card authorization, real-time sales tracking/reporting, cash & inventory management and service diagnostics/testing. Additionally, pricing, tax rates and other software configuration changes, like customized LCD or receipt messages, can be made remotely to all installed machines, without requiring an on-site service visit.
    "DataWave's technology, and its reliability, has added new points of presence to our marketing program and will become a key service to our ridership," said Bill Webb, Contract Buyer in Materials Management, of Pace Bus. "We look forward to expanding this program, once these trials are complete, to benefit all our customers."
    Both ridership response to the new devices, as well as unit sales generation, are favorable. The Company has received requests from other bus companies in North America to integrate the DataWave System into their fleets of buses. This application of DataWave's technology is one example of the expanding range of products and services offered by the Company.