15 Southern California Cities Adopt USA Technologies' VendingMiser(R); South Bay Cities Council of Governments (SBCCOG) Launches Vending Machine Initiative to Lower Energy Consumption and Cost.

MALVERN, Pa. -- Fifteen cities in Southern California are responding to California's energy shortage by installing USA Technologies' (OTC Bulletin Board:USAT) VendingMiser energy management technology on vending machines throughout the region.

USA Technologies announced today that the South Bay Cities Council of Governments had already deployed VendingMiser devices on vending machines throughout the 15 cities and as well as several school districts. The program is being managed by the South Bay Energy Savings Center, which is a project of the SBCCOG. The SBCCOG estimates savings of 260,000 kilowatt hours of electricity and more than $40,000 in annual energy costs.

"This first initiative has been a successful demonstration of the power of cities working together to pursue initiatives that lower energy consumption and energy costs. It is also a way for the South Bay cities to lead by example," said Jim Aldinger, the South Bay Cities Council of Governments Chairperson. "The VendingMiser is a relatively simple device; however its ability to deliver substantial savings is powerful, reducing energy consumption by more than 1,000 kilowatt hours, or $150-$200 per vending machine a year."

"The South Bay Cities Council of Governments is showing remarkable leadership in energy conservation during a time of deepening energy crisis in America," said Kurt Kammerer, Principal, K.J.Kammerer & Associates, a USA Technologies distributor. "The council is already considering further expanding the VendingMiser program to 1000 vending machines to save more than one million kilowatt hours of energy, and in excess of $150,000 in annual energy costs."

The South Bay Cities Council of Governments was established to pursue programs that optimize resources, improve productivity and the quality of life, while reducing cost.

The council comprises the cities of Carson, El Segundo, Gardena, Hawthorn, Hermosa Beach, Inglewood, Lawndale, Lomita, Manhattan Beach, Palos Verdes Estates, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, and Torrance.

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, Blackboard, 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.