A conference call will be held on Monday, July 14,th at 11am EST to present and discuss the results. Those interested in participating should dial (416) 644-3417 or toll free 1 (800) 732-9303. 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 SECOND QUARTER HIGHLIGHTS:

Financial

- Increase from 815 to 1033 in the number of systems in Leased Table Equivalent ("LTE") Patent Royalties in the second quarter compared to the first quarter

- 49% increase in recurring revenue from $519,000 in Q2 2007 to $775,000 in Q2 2008

- 48% increase in gross profit for the second quarter from $529,000 in 2007 to $785,000 in 2008

- 86% gross margin in Q2 2008

- 28% average annual growth in recurring revenue in the last three years

- $1M one-time royalty payment received from Station Casinos for G3(TM) approval in Nevada

- Continued stability in the operating costs at $850,000 per quarter or $3.4 M per year

Operational

- G3(TM) System Approval in Nevada

- Real Link(TM) Wireless Table Game Linking System released

- Mike Telesmanic named Chairman of the Board

- DEQ wins a Top 20 USA Gaming Innovation Award

- Philippines Remote Betting Patent granted

- Pechanga Casino converts over 60% of its Baccarat tables to EZ Baccarat(TM) with EZTRAK(TM)

"During the second quarter of 2008, our efforts were focused on completing and obtaining our Nevada certification which was the kick-off of our USA commercialization," stated Earle G. Hall. "Also, in conjunction with the Nevada certification, we completed numerous individual state and jurisdictional operating licence applications to begin commercialization and installations outside of Nevada. Our financial performance in the quarter is starting to yield results in the United States and we are very proud that all the hard work is paying off."

--------------------------------------------------------------------------Balance Sheet            Nov. 30,      Nov. 30,      Feb. 29,       May 31,                            2006          2007          2008          2008                        (Audited)     (Audited)   (unaudited)   (unaudited)----------------------------------------------------------------------------------------------------------------------------------------------------Cash and cash equivalents           3,591,367    11,364,112    10,316,664    10,559,478Current assets (other than cash)     2,783,913     2,180,534     2,649,097     3,341,568Long-term assets       7,329,713     9,187,762     9,174,871     9,301,495---------------------------------------------------------------------------Total Assets         $13,704,993   $22,732,408   $22,140,633   $23,202,541----------------------------------------------------------------------------------------------------------------------------------------------------Current liabilities    1,581,378     1,716,162     1,074,818     2,108,458Long-term liabilities             655,896       577,073       577,073       577,073Shareholders' equity  11,467,719    20,439,173    20,488,741    20,517,010--------------------------------------------------------------------------Total Liabilities and Equity          $13,704,993   $22,732,408   $22,140,633   $23,202,541----------------------------------------------------------------------------------------------------------------------------------------------------Number of shares outstanding          53,241,149    69,350,794    69,907,919    69,907,919----------------------------------------------------------------------------------------------------------------------------------------------------Additional financial information                                Second Quarter            Six Month Period                         May. 31,       May 31,      May. 31,       May 31,                            2007          2008          2007          2008                      (unaudited)   (unaudited)   (unaudited)   (unaudited)----------------------------------------------------------------------------------------------------------------------------------------------------                               $             $             $             $Revenue Distribution Recurring revenue       518,984       775,605     1,246,317     1,385,748 Product sales and  patents rights          72,621       138,132       680,320       450,708--------------------------------------------------------------------------                         591,604       912,736     1,926,637     1,836,457--------------------------------------------------------------------------Gross Profit             529,074       785,142     1,690,305     1,443,453Operating Cost(1)        720,969       856,873     1,673,061     1,668,551--------------------------------------------------------------------------EBITDA(2)               (191,895)      (71,731)       17,244      (225,098)Interest income, net of expenses              82,328       167,084       171,095       338,691Deferred revenue variation               807,687     1,057,755       522,137       939,468--------------------------------------------------------------------------Adjust. Operational Cash Flow(2)           $698,122    $1,153,108      $710,476    $1,053,061----------------------------------------------------------------------------------------------------------------------------------------------------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                                  Second Quarter          Six Month Period                            May. 31,     May. 31,     May. 31,     May. 31,                               2007         2008         2007         2008                         (unaudited)  (unaudited)  (unaudited)  (unaudited)----------------------------------------------------------------------------------------------------------------------------------------------------                                  $            $            $            $Revenue Royalties                  439,697      691,424    1,080,701    1,226,555 Sale of equipment           72,621      138,132      680,319      450,708 Equipment rental            79,287       83,182      165,615      159,193 Patent rights                    -            -            -            ---------------------------------------------------------------------------                            591,604      912,736    1,926,636    1,836,457Gross Profit                529,074      785,142    1,690,305    1,443,453% Gross margin                   89%          86%          88%          79%Net Loss                  $(583,971)   $(268,241)   $(516,286)   $(452,175)Net Loss) per share         $(0.011)     $(0.004)     $(0.010)     $(0.006)

ABOUT DEQ

Founded in 1998, DEQ Systems Corp. (TSXV: 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.