Release Details

MALVERN, Pa., Oct 05, 2010 (BUSINESS WIRE) -- USA Technologies, Inc. (NASDAQ: USAT), a leader in the networking of wireless non-cash transactions, announced today that during its first fiscal quarter ended September 30, 2010, the Company reported that it had processed for its customers a record of nearly 14 million transactions for a total of $24.5 million. These amounts, versus the quarter ended Sept 30, 2009, represent increases of 89% and 68% respectively.

In addition, the Company now has slightly over 1,200 customers connected to its ePort Connect Service, up from the 1050 in the quarter ended June 30, 2010. "We're excited about reaching these milestones, and by the growth of our customer base," said George Jensen, Chairman and CEO of USA Technologies "The Company believes that these milestones demonstrate that USA Technologies is a leader in wireless, unattended, small-ticket transactions."

"In order to meet the demands of the increasing number of connections on our service and the transactions being processed every day, and in response to customer feedback and requests, we are continually improving our solution to make it more efficient and effective," continued Jensen. "Our team has been focused on expanding and enhancing our current feature set to meet these demands and to make the service even more user-friendly and convenient for both our customers and the consumer."

New Features and Functionality

The Company also announced today that it has expanded the feature set and functionality of its ePort Connect Service in several important areas. These include faster transaction times for consumers at the point of sale; more efficient transfer of customers' operational, or DEX (Data Exchange) data, over the ePort Connect network; improved efficiency and versatility of the USALive online reporting function through increased speed and the ability for customers to create and automate custom reports from their own locations; increased server capacity to enable continued expansion; and an online ordering and contracts system for faster and more convenient processing of orders and contracts.

"Our vision at USA Technologies has always included providing more and more value for our customers," continued Jensen. "As wireless, cashless transactions become increasingly more mainstream, we continue to enhance the software, security, infrastructure and capacity of our network. Our goal is to lead the market by continuously expanding the features of the only turnkey wireless system currently available for unattended, non-cash transactions in the markets we serve. With over 150 new customers this quarter alone, our list of customers and demand for our services continues to grow. The enhancements we implemented on our system over this last quarter will enable us to continue to scale quickly and efficiently while maintaining and improving upon our best-in-class service. We also place the highest priority on security - as evidenced by our PCI certification as VISA CISP Level One Service Provider."

USA Technologies' industry leadership was recognized in September 2010 by The Nilson Report, a leading source of research on global consumer payment systems, which again ranked the company 6^th in the United States for shippers of POS terminals, and 31^st among the world's leading shippers of POS terminals, an improvement of three positions from the previous year. The Company also reported that as of August 2010, it had reached a monthly run rate equal to an annualized run rate of $100 million in transaction processing for its customers on the ePort Connect Service. Additionally, on September 2, 2010, the Company reached a new record of over 200,000 transactions processed in a single day. The Company believes these milestones may indicate a "tipping point" (i.e., accelerated adoption) of wireless cashless payment systems in the markets that it serves.

The Company also reiterated its strategic goal of having 100,000 devices connected to its network by December 31, 2010, and achieving positive EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) for the quarter ended December 31, 2010.

The Company's financial results for the quarter ended September 30, 2010 will be reported in the Company's Form 10-Q which the Company anticipates filing with the Securities and Exchange Commission by no later than November 12, 2010.

About USA Technologies:

USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries. The Company has been granted 78 patents and has agreements with AT&T, Visa, Compass and others. Visit our website at www.usatech.com

Forward-looking Statements:

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: All statements other than statements of historical fact included in this release, including without limitation the anticipated "tipping point" in the markets in which the Company serves, are forward-looking statements. When used in this release, words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, whether or not the marketplace continues to adopt cashless transaction processing; whether or not the marketplace continues to purchase the Company's products in the future; the ability of the Company to retain key customers from whom a significant portion of its revenues is derived; the ability of the Company to compete with its competitors to obtain market share in the future; the ability of the Company to obtain widespread commercial acceptance of it products in the future; whether the Company's existing or anticipated customers purchase or lease ePort devices in the future at levels currently anticipated by the Company; whether the Company's customers participate in the Jump Start program in the future at levels currently anticipated by the Company; or whether the Company's shares or publicly traded warrants would continue to meet the eligibility requirements for continued listing on The NASDAQ Stock Market, LLC. Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made by us in this release speaks only as of the date of this release. Unless required by law, the Company does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.

SOURCE: USA Technologies, Inc.

USA Technologies Contact:
George Jensen, Chairman & CEO
Stephen P. Herbert, President & COO
Phone: (800) 633-0340
e-mail: sherbert@usatech.com
or
Investor Relations Contact:
Lippert/Heilshorn & Associates
Stephanie Prince/Jody Burfening
e-mail: sprince@lhai.com
jburfening@lhai.com
Phone: (212) 838-3777

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