Strong Demand for USA Technologies' New G7 ePort(R) Results in Recent Orders for 8,000 Terminals

MALVERN, Pa. - (www.AllPayNews.com) The new Generation Seven (G7) ePort launched by USA Technologies (NASDAQ:USAT) in March 2008 has been met with very strong demand, already resulting in orders for 8,000 terminals. Hardware sales alone are expected to be approximately $3.5 million. These new orders are independent of previously successful seeding programs with the major credit card associations.

“Our latest generation ePort® G7 is the Company’s most successful product launch to date,” said George Jensen, Chairman and CEO, USA Technologies Inc. “1,200 ePort® G7 units (approximately $540,000 of revenues) were included in our third quarter operating results, and sales of the remaining 6,800 ePort® G7 units (approximately $3M of revenues) are anticipated to be included in our fourth quarter operating results, ending June 30. This revenue does not reflect any monthly network service fees or transaction processing fees to be received by the Company in connection with these ePort® G7 cashless terminals. The G7 ePort® with added features and reduced production costs is accelerating sales and setting the stage for a fourth consecutive record revenue quarter,” he said.

The G7 operates with MasterCard’s PayPass, American Express’ ExpressPay, Visa’s Contactless, Chase Bank’s Blink, and Discover’s Network Zip Contactless system. The ePort® G7, launched at the NAMA vending machine Spring Expo in Las Vegas in March, is first to provide a wireless, cashless transaction solution for vending machines that combines traditional mag-stripe and RF payment capabilities with the ability to accept Gift, Stored Value and Loyalty programs. The G7 also has the capability to execute remote, ‘over the air’, software updates via the USALive® Network, allowing ePort® customers to upgrade capabilities and leverage new services within thousands of locations in a rapid, cost effective and efficient manner.

The orders for the G7 devices come after a successful nationwide “seeding” program combining major global card companies with bottlers and vending machine owners and operators, including MasterCard, Discover, Coca-Cola Enterprises, Cadbury- Schweppes and a dozen vending machine companies nationwide.

In concert with releasing the G7, the Company launched ePort® Connect Pre-Paid and Loyalty programs. These programs provide customers with a powerful suite of tools to manage their own pre-paid and loyalty initiatives. The offering will include an online portal where users can load value, activate, deactivate and check balance on their cards, as well as manage automated balance by phone, couponing, and international conversion.

The Stored Value and Loyalty program is powered by USA Technologies’ PayDot™ a “smart” paper thin, nickel-sized sticker that enables users to make contactless transactions such as stored value and loyalty. The PayDot can be affixed to whatever is most convenient to the user including their cell phone, PDA, iPod or employee badge.

To view an image of the ePort G7, go to http://www.usatech.com/eport/downloads/intro_of_eportG7.pdf

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 agreements with AT&T, Honeywell, Blackboard, MasterCard and others. For further information on USA Technologies, please visit www.usatech.com. To view a Company overview presentation, visit http://www.usatech.com/company_info/dl/USAT_company_overview_2008_05_1 9.pdf (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

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 product acceptance, the ability to continually obtained increased orders of its products, the ability to meet installation goals, economic, competitive, governmental impacts, whether its pending patents will be granted or defendable; validity of intellectual property and patents of USA, the ability of USA to license its patents, the ability of USA to commercialize its developmental products, technological and/or other factors, which could cause actual results or revenues to differ materially from those contemplated by these statements.

USA Technologies
George Jensen, Chairman & CEO
Stephen P. Herbert, President & COO
800-633-0340
sherbert@usatech.com
or
Investor Relations Contact:
Porter, LeVay & Rose
David Porter
Marlon Nurse
212-564-4700