QI Systems and CardLogix Announce First Phase Completion of Smart Card Payment Solution for Parking in Santa Monica; Over Six Thousand Meters Adapted to Smart Card Payment Solution

DALLAS & RICHMOND, British Columbia--April 20, 2006--QI Systems Inc. (OTCBB:QIIIF), a leading developer and integrator of smart card payment, access-control and tracking solutions and CardLogix, a leading supplier of smart cards and software for the secure transaction of data and value, announce the launch of a re-loadable stored value card scheme for payment of parking in the City of Santa Monica, California. QI Systems along with CardLogix have developed a smart card-based solution for the payment of parking fees at meters throughout the city, which collects on 6,400 spaces.

QI Systems and CardLogix have worked together on a number of stored value systems for parking over the past several years. The Santa Monica program is modeled after the successful installation of a similar system several years ago in the City of San Diego. As in San Diego, the system uses QI Console Value Reload terminals to monetize the customer cards. A feature of this system is the ability to work with the city's existing installed base of parking meters from major suppliers. The QI Console Reload Terminal is placed with attendants in City-owned 'parkades' for easy access by consumers.

Steve Garman, President and CEO of QI Systems, stated, "We are pleased with the first phase completion of the Santa Monica project. We will continue to introduce our smart card parking solution in the city over the next year. QI and CardLogix are actively pursuing other opportunities where this innovative method of card reload can be used. The system is very cost effective for the city or municipality and provides a high level of convenience for the customer. We believe it will be a consistent contributor to our growing revenue base."

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.