California County Deploys USA Technologies VendingMiser(R) to Lower Energy Consumption and C02 Emissions.

Redwood Coast Energy Authority Launches Humboldt Vending Machine Efficiency Initiative

MALVERN, Pa. -- USA Technologies (NASDAQ: USAT) announced today that a second California region has launched a significant program to lower energy consumption and C02 emission by installing its EnergyMiser[TM] energy conservation technology.

Humboldt County on northern California's coast is following the lead taken last year by the Los Angeles South Bay Cities Council of Governments to radically improve the efficiency of refrigerated vending machines in towns and cities across the region.

The Humboldt Vending Machine Efficiency Initiative is a joint project between Rendezvous Music & Vending ([e-mail]), a Canteen Franchise and Humboldt County's largest vending machine distributor; and the Redwood Coast Energy Authority (RCEA) (www.redwoodenergy.org), which is funding the VendingMiser technology and installation costs in a partnership with Pacific Gas and Electric Company known as the Redwood Coast Energy Watch.

"The Redwood Coast Energy Authority's mission is to implement initiatives that reduce energy demand and increase energy efficiency in Humboldt County," said Daniel Marchetti, President, Rendezvous Music & Vending. "We estimate that our collaboration to install the VendingMisers on more than 400 refrigerated vending machines across Humboldt County will help save local businesses and public agencies at least 644,000 kWh/year, equal to about $100,000 in annual energy cost savings. We are now considering installing the USA Technologies EnergyMiser in another 400 candy and snack vending machines."

"VendingMisers are a useful technology where substantial energy savings can be made," said David Boyd, Redwood Coast Energy Authority Executive Director. "RCEA is pleased to be able to provide VendingMisers to public agencies and businesses in Humboldt County to help make vending machines more energy efficient."

USA Technologies VendingMiser is capable of reducing the cost of operating a vending machine by an average of 46%.

"Our goal is to showcase the success of the Humboldt Vending Machine Efficiency Initiative and expand it State-wide," said Hank Ryan, President, Efficiency Data and Development, a major USA Technologies distributor/reseller in California. "There needs to be a greater recognition of just how much energy and emissions intensity vending machines bring to the demand side of the energy equation, and Humboldt County and the South Bay Cities should be complimented for their initiative, and for driving greater awareness and encouragement for other communities to follow their example," said Mr. Ryan.

Rendezvous Music & Vending helped launch the vending machine initiative by distributing a letter to all vending machine sites in Humboldt County promoting the energy saving benefits of the VendingMiser.

"It is an inspiring support letter showcasing how vending operators and city officials and authorities can unite to implement energy initiatives that substantially lower energy consumption and C02 emission," said Wendy Jenkins, Vice President of Marketing, USA Technologies Inc. "We are heartened that more communities are coming together, and we commend Humboldt County and the South Bay Cities for taking the lead in California."

The South Bay Cities Council of Governments installed VendingMiser on vending machines in 15 cities south of Los Angeles and estimates saving more than $40,000 in annual energy costs. The council plans to expand the deployment over the next several years.

Businesses and communities in California are growing increasingly serious about emissions reduction, encouraged by California Governor Schwarzenegger's leadership in pursuing strategies to reduce the threat of Global Warming.

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 Cingular Wireless, 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.