Blackboard Becomes USA Technologies' Reseller to Expand Distribution of e-Suds(TM) Online Laundry Service to Colleges and Universities Nationwide.

MALVERN, Pa. -- High Tech Laundry and Leading-edge Payment System Combine to Improve Laundry Experience

Blackboard Inc., the Nation's leading provider of software and services to the education industry, has become a reseller of USA Technologies' e-Suds(TM) online laundry service.

USA Technologies (OTC Bulletin Board:USAT) announced today that Blackboard had added e-Suds to its product line and would offer it to hundreds of academic institutions that use the Blackboard Transaction System(TM).

e-Suds is the leading Internet connected laundry system that was recently featured on Fox National News for its innovativeness (click on the link to see the segment http://www.usatech.com/company_info/news/usa_2006_05_24.php). With e-Suds students go online to check the availability of laundry washers and dryers through the Internet; they swipe their Blackboard transaction card to activate the laundry system, and are notified by email on their PC or receive a cellular phone text message when the laundry is done. The cost of the service is automatically deducted online from a student's Blackboard account.

"The relationship leverages the best leading edge technology from both Blackboard and USA Technologies to bring a quality product to campuses nationwide," said Wendy Jenkins, Vice President, Marketing, USA Technologies. "Blackboard has indicated to us that several universities and colleges are waiting on the reseller agreement, and it anticipates that these institutions will begin installations this coming summer."

USA Technologies' e-Suds online laundry system has already been installed at 15 universities and colleges, including Rutgers University, Goucher College, Case Western University, Temple University, and American University.

There are an estimated 1.3 million washers alone in America, with more than 700,000 located on college and university campuses. USAT's e-Suds system already receives more than 50,000 hits a day from students.

Campus administrators praise e-Suds for generating new business and increasing customer satisfaction, while university students say it takes the drudgery out of doing laundry and frees them up to better utilize their time.

"We are excited to welcome Blackboard as a reseller, integrating their technologies with ours to bring students the most efficient, high-tech laundry service imaginable," said Ms. Jenkins. "We believe that the Blackboard partnership is what many of our partners and potential customers have been waiting for."

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.