Release Details

MALVERN, Pa., Jan 07, 2008 (BUSINESS WIRE) -- USA Technologies (NASDAQ:USAT) announced today that its new Quick Start Program that eliminates up front capital cost of installing the Company's ePort cashless payment products had attracted an immediate and growing response from vending companies.

The Company believes that the positive results currently being experienced by its customer base, as well as flexible options such as Quick Start which lower cost of entry, have contributed directly to continued adoption of cashless payment in vending, leading to accelerating sales of its ePort products and services.

The Company reported there were 7,123 ePort units shipped during the quarter ended December 31, 2007 (Q2 FY 08) vs. 1,982 units shipped during the quarter ended December 31, 2006 (Q2 FY07), a 259% increase. The increased deployment of ePorts is driving additional revenue growth via high margin recurring revenue through monthly service and transaction fees.

USA Technologies has closed multiple Quick Start agreements and is in advanced negotiations with several dozen vending operators following the launch of the Quick Start Program approximately two months ago at the NAMA vending industry Expo.

"USA Technologies designed Quick Start in response to customer demand for more convenient and flexible financing alternatives, and we have been overwhelmed by how quickly the vending industry has responded," said Mike Lawlor, Vice President of National Accounts Sales, USA Technologies. "The rapid response from vending operators is confirmation that the vending industry increasingly wants to offer its customers the option of a credit and debit card payment alternative."

The Quick Start financing program offers vending machine operators and bottlers a convenient 'no money down' plan to help them get started with the ePort Connect service quickly and easily. For more information about the Quick Start Program, please click on the USA Technologies website -- http://www.usatech.com/e-port/e-port_quickstart.php

With Quick Start, operators and bottlers have access to an all-in-one solution to help fund the cost of the ePort and support services. Under the program, vending operators or bottlers have no capital cost and pay a monthly service fee of $24.95, which includes the ePort device and the full ePort Connect suite of services.

"Quick Start helps vending companies immediately realize a positive return by accelerating the process of bringing their consumers the convenience of being able to utilize credit and debit cards to vend snacks, food and beverages," said Mr. Lawlor. "With the addition of credit and debit card acceptance via the ePort service, our customers are generating impressive results, including 20%, 30% and in some cases 50% increase in year-over-year sales revenue growth. On average, consumer card purchases are 30% higher than cash purchases, which is key to increasing sales and overall improvement in our customer's profitability."

The Quick Start Program extends to the full ePort online and wireless cashless transaction product line that accepts magnetic swipe and contactless credit and debit cards, as well as Near Field Communications (NFC) technology that enables payment using cellular telephones and other wireless payment systems. It also extends to USA Technologies ePort Connect(TM) package, a complete portfolio of high-speed turnkey services for the multi-billion dollar unattended point-of-sale (POS) markets, which builds on the company's success with ePort technology in the vending, commercial laundry and office equipment markets.

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 marketing agreements with AT&T, Honeywell, Blackboard, MasterCard and others. For further information on USA Technologies, please visit www.usatech.com.

Statement under the Private Securities Litigation Reform Act:

With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limited to, the ability of the Company to increase revenues in the future due to the developing and unpredictable markets for its products, the ability to achieve a positive cash flow, the ability to obtain orders for its energy management products , the ability to obtain new customers and the ability to commercialize its products, which could cause actual results or revenues to differ materially from those contemplated by these statements.

SOURCE: USA Technologies

USA Technologies Contact:
George Jensen, Chairman & CEO, 800-633-0340
or
Stephen P. Herbert, President & COO, 800-633-0340
sherbert@usatech.com
or
Investor Relations Contact:
CEOcast, Inc.
Gary Nash, 212-732-4300

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