DEQ Systems Corp. (TSX VENTURE:DEQ), a leading provider of table game bonusing,
jackpot and loyalty solutions, announces today it has entered into an agreement
to terminate the exclusive distribution license for the territories of Asia,
Europe, South America and Africa granted previously to DEK International
("DEK"), an arm's length party, and has renegotiated the DEQ Royalty agreement
to align the royalty amounts with the current market economics for DEQ's patents
and products for the remaining seven (7) years of its agreement with DEK.


The exclusive distribution license was repurchased for a total amount of
USD$12,000,000. The payment of this amount was divided into three (3) parts. An
amount of USD$3,850,000 was paid in cash at closing, USD$5,500,000 was paid by
the transfer to DEK of the balance owed from advances due to DEQ by Severn as
previously disclosed in the Severn Loan Agreements of 2005 and 2006. A final
amount of $2,650,000 will be paid over three (3) years in three (3) yearly
payments subject to a ratchet clause that will proportionally reduce the balance
of payment if the number of tables used for the calculation of the royalty
amounts is less than 450 tables at anytime during the first three (3) years of
the agreement.


The transfer of the Severn Agreement loan balance to DEK does not affect in any
way the 10 year Royalty Agreement between DEQ and Severn and DEQ will continue
to collect the previously disclosed royalty amounts for the next nine (9) years.


As part of its agreement with DEQ, DEK will pay royalties at rates comparable to
other existing DEQ distribution agreements. Currently, DEK pays an average of
$960 per year per table in royalties to DEQ for 450 tables. These amounts were
negotiated at a time when the respective markets such as Asia markets were less
regulated and patent defence was more difficult.  DEK will now pay readjusted
royalties of $4200 per year per table for the first three years, $3600 per table
for the fourth year and the standard LTE (Leased Table Equivalent) amount of
$3000 per year per table for the remaining three (3) years of the agreement.


Based on the 450 tables that are currently being operated by DEK, The total
projected royalty increase would be approximately of $8,316,000 from the current
royalty amounts for the next seven (7) years of $3,024,000 for the new projected
total of $11,340,000. DEK will retain non exclusive distribution rights in their
respective markets on the similar terms and conditions as all other DEQ
distributors. 


"We are very excited about this opportunity to open up these markets including
Asia, Europe and Africa to all of our current and potential distributors,"
stated Earle G. Hall, President and CEO of DEQ. "We have been working with
numerous distribution opportunities in Asia and this agreement will give us the
flexibility and freedom to choose the best partner for the right project. The
significant increase in the royalty streams from DEK will, in our opinion, have
a positive effect on our financial position and reinforce the value for our
products and patents in these emerging markets."


In 2000, DEQ Systems Corp. signed an exclusive distribution license with DEK
through its exporting agent, Amusements Extra for territories that were outside
the United States, Canada and Australia. DEQ's business plan at the time was
focused on North America given these markets represented the majority of
regulated gaming operations. Since then, the American expansion into Asia and
Europe as well as the legalization of gaming operations has resulted in DEQ
re-evaluating this strategy and entering into this agreement with DEK because of
the increased interest of USA casinos in Asian and European markets. 


ABOUT DEQ

Founded in 1998, DEQ Systems Corp. (TSX VENTURE:DEQ) is a leader in the table
game bonusing technology field. DEQ's patents, products and features include
side bet bonusing games with progressive and random jackpot prizes, slot machine
style mystery bonusing, multiple credit and denomination betting flexibility,
dealer hand betting, electronic credit bank, electronic rake, baccarat hand
tracking, multimedia animation and sound effects. DEQ has an extensive patent
portfolio that is recognized in more than 50 countries such as the USA, Macau,
Australia and Canada. DEQ's bonusing solutions and products are present in more
than 200 casinos in over 30 countries. For further information, please visit
www.deq.com 


Forward-looking statements contained in this Press Release involve known and
unknown risks, uncertainties and other factors that may cause actual results,
performance and achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by the said
forward-looking statements. DEQ Systems Corp. has been selected in the TSX
Venture 50 in 2008. "2008 Venture 50" is a trademark of TSX inc. and is used
under license. TSX Venture does not accept any responsibility regarding the
accuracy of the information contained in this press release.