USA Technologies Launches Conversion Program for Existing Vending Machines to become ENERGY STAR(R) Equivalent.

Testing Services and VendingMiser Technology to Help Bottlers Lower Energy Consumption; Drive VM2IQ Sales

MALVERN, Pa. -- USA Technologies (OTC Bulletin Board:USAT) announced today the EnergyMiser[R] Conversion Program to help vending machine owners and operators nationwide convert their installed vending machines to meet ENERGY STAR requirements.

The EnergyMiser Conversion Program is a comprehensive turnkey package of services and technology provided by USA Technologies for bottlers to capitalize on the new ENERGY STAR Refurbishment Program.

The announcement comes days after the Environmental Protection Agency announced the Rebuilt Beverage Vending Machine Program under which older and existing machines will be able to qualify for ENERGY STAR eligibility and carry the ENERGY STAR label.

"The EPA's Rebuilt Beverage Vending Machine Program is an important new initiative that will have a significant effect on the $40 billion vending industry," said Stephen P. Herbert, President and COO, USA Technologies.

There are four million refrigerated vending machines in the U.S. alone, and of that installed base, approximately 200,000 are refurbished and remanufactured each year.

"Our VM2IQ VendingMiser can help bring these 200,000 machines up to ENERGY STAR compliance. That's a significant incentive for the vending industry that we believe will help drive sales of the VM2IQ and help us achieve our sales objectives for fiscal year 2007 and for years to come," he said.

The VM2IQ can be installed quickly and easily inside refrigerated vending machines. USA Technologies' VendingMiser technology can reduce energy consumption by up to 45 percent.

USA Technologies has developed three critical services required to convert a used refrigerated vending machine into an ENERGY STAR vending machine:

1. A Vending Machine Chamber Testing and Data Analysis Center approved to test any make and model of vending machine following the ASHREA standard 32.1-2004.

2. An EPA ENERGY STAR Documentation Submission process. Before a machine is refurbished to become ENERGY STAR compliant, it must complete a Qualified Product Information form. These forms record and document test information for the EPA.

3. VM2iQ[R] Product Installation and Maintenance Training

Only those machine-component combinations that have been approved for ENERGY STAR qualification and listed on the ENERGY STAR Qualified Product List can bear the ENERGY STAR label.

"USA Technologies has the first program in place to provide a cost effective services and technology to test and convert vending machines to meet the EPA's new standards," said Mr. Herbert. "Many of our customers are already bringing their machines into the program for conversion and are delighted with the results," he said.

ENERGY STAR qualified new and rebuilt refrigerated beverage vending machines are 40 percent more energy efficient and can save building and business owners more than 1,600 kWh/year, or nearly $130 annually on utility bills.

USA Technologies is listed as one of five vending machine manufacturers and component suppliers on the EPA's ENERGY STAR web site for the rebuilt program.

For questions regarding the EnergyMiser Conversion Program, please call USA Technologies, 800-633-0340.

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.