USA Technologies & IBM Jointly Offer Cashless Hotel Room Key-Card Vending Solution

The room key-card was developed together with its business partner, IBM IBM, and allows hotel guests to purchase goods and services, such as beverages and snacks, from the hotel's vending machines or use the hotel's 24x7 Business Express business center to make a copy, send a fax or access the Internet. Hotel guests simply swipe the room key-card through USA Technologies' e-Port(TM) and the purchase is automatically added to the guest's room charges.

"The networked hotel room key solution has attracted considerable attention since we first unveiled it in 40 machines at the 1,400 room Gaylord Palms Resort & Convention Center in Orlando, Florida," said Stephen P. Herbert, President and COO of USA Technologies. "With the positive feedback from Gaylord Palms and their hotel guests, we anticipate a huge reception when we introduce the system to the hospitality industry at the HITEC show in Chicago."

Since the Gaylord Palms installation, properties within two of the top global hotel chains, Starwood Hotels and Marriott International, have committed to implementing the hotel room key cashless solution. Additionally, multiple major hotel chains and hotel properties have expressed interest in implementing the solution as an added convenience to their guests.

"Technology that provides additional convenience to my guests like the e-Port room key payment system, is the type of solution that we want to implement at our property," said Rich Kolinsky, General Manager of the Sheraton Great Valley. "With their room key card, our guests will buy a drink from a vending machine or send a fax, check e-mail, etc. at the Business Express, our self-serve business center. These charges are automatically posted to their room folio."

The Business Express automated business center system gives hotel guests 24x7 access to desktop computers, printers, copiers and facsimile machines, which are activated by the e-Port technology. Business Express is already operational in more than 500 hotels across the USA and Canada including properties with industry leaders Marriott, Hilton, Starwood and Six Continents.

The hotel room key card cashless solution was developed together by USA Technologies and IBM Global Services as a wireless service for the traveling public. By simply swiping their hotel room key, guests can make beverage and snack vending purchases, use the laundromat facilities or access the Business Express located in the hotel business center. The charge is conveniently added to the guest's room bill.

USA Technologies' key-card networking solution and its associated e-Port technology are innovations in the vending market," said John Baker, Wireless e-business Services Practice Leader, IBM Global Services. "We have worked closely with USA Technologies in unveiling the e-Port and are delighted to participate in bringing its next stage of development to market," he said. "As part of IBM's Smart Chip strategy for wireless e-business, the Intelligent Vending solution offered by USA Technologies and IBM, brings us one step closer to the reality of common every-day devices connected to the internet, providing exciting new services for our customers."

About USA Technologies:

USA Technologies is recognized as a leader in unattended cashless and m-commerce transactions, associated financial/network services and interactive media technology. USA Technologies provides networked credit card and other cashless/mobile commerce systems. 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 the IBM Corporation and Mars Electronics International. It has also established partnerships with a number of global IT, multimedia, and telecommunications companies including Marconi Online Systems, RadiSys Corporation, DoubleClick Inc., and Xerox Corporation. Visit the USA Technologies home page at 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 product acceptance, the ability to continually obtain increased orders of its products, the ability to finance production of the Kodak backlog, the ability to meet installation goals, economic, competitive, governmental impacts, whether its pending patents will be granted or defendable, validity of intellectual property and patents of USA, the ability of USA to commercialize its developmental products, the anticipated revenues of Stitch, technological and/or other factors, which could cause actual results or revenues to differ materially from those contemplated by these statements.