USA Technologies Debuts Generation 5 e-PORT Solution Using ZiLOG's eZ80Acclaim! Flash MCU at NAMA National Expo.

SAN JOSE, Calif. -- Leading provider of integrated microcontroller solutions, ZiLOG(R) Inc. (Nasdaq:ZILG), today announced that the new Generation 5 (G5) e-PORT(R), a cashless transaction application developed in partnership with USA Technologies (OTCBB:USTT), is to be shown for the first time at the NAMA National Expo, the premier event in the vending, OCS and on-site foodservice management industries, which is being held at the Lakeside Center at McCormick in Chicago from October 14-16.

The G5 e-PORT, powered by ZiLOG's award-winning eZ80Acclaim!(TM) family of Flash microcontrollers (MCUs), is both smaller and more affordable than its predecessors and can be installed into devices such as vending machines in five minutes or less. A video of the installation of this application can be seen at http://www.usatech.com/news/usa_2004_10_07video.php. Its wireless connectivity instantly enables vending locations to accept credit/debit card transactions. USA Technologies believes it to be the world's first 'one-piece' design for implementation of cashless vending.

The G5 e-PORT solution is proving popular with customers, including (one of the country's largest) Coca-Cola bottlers. This solution has already been installed in some of their vending machines. Feedback from other customers who are Beta testing the solution has also been very positive.

e-PORT offers numerous benefits to the consumer such as the convenience of cashless transactions. Just as you swipe your card at the gas pump to purchase gas, a consumer swipes their card at a vending machine to purchase items. This fact is especially relevant when you consider that credit and debit card purchases now surpass cash purchases in the USA. Operators and vendors can also capitalize on the fact Americans prefer to use debit or credit cards rather than carry cash -- this aspect of convenience can increase sales. The network connectivity of e-PORT also enables vendors to manage their assets, in this case vending machines, more effectively by having remote access to sales data. In addition, less cash is left in the vending machines, making them less vulnerable to theft.

The G5 e-PORT promises to accelerate the adoption of cashless vending by offering greater return on investment in the form of reducing the overall cost, driven by a lower purchase price, reduction in installation time and improved serviceability. The Generation 5 e-PORT is one of the products made possible by the recently announced networking application that combines USA Technologies' e-PORT(R) software for global transactions with ZiLOG's eZ80Acclaim! family of Flash microcontrollers.

"By integrating e-PORT software into our eZ80Acclaim! Flash MCU in the new G5, we have the ability to strategically expand into other application areas such as networking distributed assets and many other innovative distributed applications," said ZiLOG president Mike Burger. "Using the eZ80Acclaim! Flash MCUs, businesses can install the e-PORT networking capability into every day commercial applications with a new-found convenience and at a very affordable price.

"Because of low development costs and the ease of implementation of the ZiLOG eZ80Acclaim! MCU for e-PORT technology, there is new potential for customers to cost effectively network every day devices. The eZ80Acclaim! Flash MCU for e-PORT solution comes with added functions and versatility, making it suitable for numerous kinds of technology serving a variety of commercial industry applications, ranging from vending machines, point-of-sale terminals, unattended kiosks such as photo booths, self-service business centers and laundry machines, such as the e-SUDS initiative which is running in several U.S. universities. We also envisage this technology being utilized in equipment servicing the security, health care and home appliance markets," continued Burger.

ZiLOG's eZ80Acclaim! Flash MCU is the first in a family of high-performance flash microcontrollers that provide a complete Internet development environment. The eZ80Acclaim! MCU, with Embedded Webserver Software Suite including a full featured TCP/IP protocol stack, is designed to perform the complicated functions required by industrial control, factory automation, building and facility management, remote monitoring and control, security, online information kiosks, vending machines, home and office automation, and Internet and digital appliances.

USA Technologies will be showing the G5 e-PORT as part of the VendTec Pavilion for new technology (Booth #963) at the NAMA National Expo.

Further information

To find out more about the eZ80Acclaim!, log onto www.zilog.com. To see the simple installation of the G5 e-PORT System, go to www.usatech.com/news/usa_2004_10_07video.php.

About ZiLOG, Inc.

ZiLOG, Inc. (Nasdaq:ZILG) Founded in 1974, ZiLOG won international acclaim for designing one of the first architectures in the microprocessors and microcontrollers industry. Today, ZiLOG is a leading global supplier of 8-bit micro logic devices. It designs, manufactures and markets a broad portfolio of devices for embedded control and communication applications used in consumer electronics, home appliances, security systems, point of sales terminals, personal computer peripherals, as well as industrial and automotive applications. ZiLOG is headquartered in San Jose, California, and employs approximately 550 people worldwide with sales offices throughout Asia, Europe and North America. For more information about ZiLOG and our products, visit the Company's website at: www.ZiLOG.com.

ZiLOG and eZ80Acclaim! are trademarks or registered trademarks of ZiLOG, Inc. in the United States and in other countries. Other product and or service names mentioned herein may be trademarks of the companies with which they are associated.

About USA Technologies:

USA Technologies is a leader in the networking of distributed assets, 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 and an inaugural member of the Sprint Enabling Application Service Provider Program for e-commerce. The Company has marketing agreements with Sprint, Motient, MEI, Unilever and ZiLOG Corporation. http://www.usatech.com.