Vending Industry Media Service Promotes Cashless as New Competitive Weapon; Editorial Supports USA Technologies' e-Port Swipe Card Solution

MALVERN, Pa.--(BUSINESS WIRE)--Aug. 30, 2005--USA Technologies (OTCBB:USTT) reported today that Automatic Merchandiser Online, a key vending industry news service, is promoting cashless vending as the new competitive weapon in vending.

The editor of the online news service, Elliot Maras, made the prediction in an editorial following the announcement by USA Technologies that it was working with a major dining services company to bring cashless vending to universities and colleges nationwide.

“The large vending operations will become more adept at offering cashless solutions, and in time, these products will become part of their standard offerings. New innovations always take root with the pioneers in any industry”

"The large vending and foodservice operations are beginning to use cashless vending as a competitive tool to win accounts," Maras says in the latest edition of Automatic Merchandiser Online. "Today's students are more interested in technology than ever, and they are far more convenience oriented than their predecessors. University administrators know this, and they are increasingly looking for automated solutions to enhance student conveniences," he says.

"Schools and universities will play a leading role in making cashless solutions a standard part of the vending industry," says Maras in his editorial. "The large vending operations will become more adept at offering cashless solutions, and in time, these products will become part of their standard offerings. New innovations always take root with the pioneers in any industry," he says.

"We saw the trend to cashless accelerate mid last year when the Federal Reserve announced that for the first time, cashless transactions had outpaced cash transactions," said Stephen P. Herbert, President and COO, USA Technologies.

The transition to cashless will continue to accelerate, especially as the credit card industry embraces new cashless technologies, such as 'contactless' credit cards. The card industry recognizes vending as the next major cashless opportunity, and already USA Technologies is working with a major credit card company to exploit the 'contactless' transaction opportunity.

To see the full Automatic Merchandiser report, click on:

http://www.amonline.com/article/article.jsp?siteSection=1&id=14399

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. USA Technologies is an IBM Business Partner. The Company has marketing agreements with Cingular Wireless, Honeywell, MEI, Unilever and ZiLOG Corporation. 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.