DEQ

DEQ Systems Corp. (TSX VENTURE: DEQ) announced today the filing of its 2008 third quarter financial results for the period ended August 31, 2008. This quarter highlights include a 38% average annual growth in recurring revenue in the last three years as well as a LTE increase of 45% from 706 in Q3 2007 to 1021 in Q3 2008.

A conference call will be held on Thursday, October 23rd at 11:00 am EST to present and discuss the results. Those interested in participating should dial (416) 644-3421 or toll free 1 (800) 731-5319. A visual presentation (Powerpoint) will be available on DEQ's website (www.deq.com) in the Invest/Financial Reports/PowerPoint section to support the call content. The Consolidated Financial Statements are available on SEDAR (www.sedar.com) and DEQ's website.

2008 THIRD QUARTER HIGHLIGHTS:

Financial

- Recurring Revenue: 45% increase from $530,000 in Q3 2007 to $766,000 in Q3 2008

- Gross Profit: 26% increase from $598,000 in Q3 2007 to $755,000 in Q3 2008

- Gross Margin: 82% in Q3 2008

- 38% average annual growth in recurring revenue in the last three years

- Slight increase in operating costs at $895,000 this quarter due to Asian commercialization travel

Operational

- Acquisition of DEK international exclusive distribution license

- Nevada Gaming Control Board Approval for the G3TM

- DEQ appoints Michael Hackman to the Board of Directors

- DEQ ranks among TOP 10 BEST TECHNOLOGY COMPANIES for 2008 on TSXV

"Our financial statements are tangible proof of the solid business model we have built based on recurring revenue," stated Earle G. Hall, president and chief executive officer of DEQ. "In these times of uncertainty, the no capital expenditure, no risk incremental revenue proposition we have built for casinos is a very enticing way for them to create new ways to attract and retain clients. This business model together with our strong financial position places DEQ in a very strong and envious position."

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Balance Sheet               Nov. 30,     Feb. 29,      May 31,     Aug. 31,
                               2007         2008         2008         2008
                           (Audited)  (unaudited)  (unaudited)  (unaudited)
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Cash and cash
 equivalents             11,364,112   10,316,664   10,559,478    6,784,210
Current assets (other
 than cash)               2,180,534    2,649,097    3,341,568    1,910,201
Long-term assets          9,187,762    9,174,871    9,301,495   17,739,692
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Total Assets            $22,732,408  $22,140,633  $23,202,541   26,434,103
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Current liabilities       1,716,162    1,074,818    2,108,458    2,890,244
Long-term liabilities       577,073      577,073      577,073    2,256,931
Shareholders' equity     20,439,173   20,488,741   20,517,010   21,286,928
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Total Liabilities
 and Equity             $22,732,408  $22,140,633  $23,202,541  $26,434,103
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Number of shares
 outstanding             69,350,794   69,907,919   69,907,919   70,416,315
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Additional financial information

                                   Third Quarter         Nine Month Period
                            Aug. 31,     Aug. 31,     Aug. 31,     Aug. 31,
                               2007         2008         2007         2008
                         (unaudited)  (unaudited)  (unaudited)  (unaudited)
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                                  $            $            $            $
Revenue Distribution
 Recurring revenue          529,943      766,074    1,776,259    2,151,823
 Product sales and
  patents rights            170,207      158,194      850,527      608,902
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                            700,150      924,268    2,626,787    2,760,725
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Gross Profit                598,164      755,682    2,288,469    2,199,135

Operating Cost(1)           635,704      895,313    2,308,765    2,563,864
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EBITDA(2)                   (37,540)    (139,631)     (20,296)    (364,729)

Interest income, net
 of expenses                 92,612      137,416      263,708      476,106
Deferred revenue variation  (70,163)    (120,516)     451,974      818,952
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Adjust. Operational
 Cash Flow(2)              $(15,091)   $(122,731)    $695,386     $930,329
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Note 1:  Operating Cost is excluding stock-option based compensation.
Note 2:  We use EBITDA (Earnings before interest, taxes, depreciation and
         amortization) and Adjusted Operational Cash Flow as performance
         measurements in our financial disclosure. These measurements are
         not recognized under generally accepted accounting principles.
         The reconciliations above demonstrate how we calculate such
         measurements from our financial statements



Statement of Earnings
                                 Third Quarter           Nine Month Period
                         Aug. 31,      Aug. 31,      Aug. 31,      Aug. 31,
                            2007          2008          2007          2008
                      (unaudited)   (unaudited)   (unaudited)   (unaudited)
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                               $             $             $             $
Revenue
 Royalties               467,231       680,070     1,547,932     1,906,626
 Sale of equipment        63,047       158,194       743,367       608,902
 Equipment rental         62,712        86,004       228,328       245,197
 Patent rights           107,160             -       107,160             -
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                         700,150       924,268     2,626,787     2,760,725

Gross Profit             598,164       755,682     2,288,469     2,199,135
 % Gross margin               85%           82%           87%           80%

Net Loss               $(321,834)     $360,326     $(838,119)     $(91,848)
Net Loss  per share      $(0.006)       $0.005       $(0.016)      $(0.005)

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 that 200 casinos in over 30 countries.

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.

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.

TSX Venture does not accept any responsibility regarding the accuracy of the information contained in this press release.

Contacts: DEQ Systems Corp. Earle G. Hall President & CEO earle.hall@deq.com DEQ Systems Corp. Francois Proulx Chief Financial Officer francois.proulx@deq.com