Highlights for the First Quarter Ended September 30, 2009

Increased the installed base by 36%, with 57,000 devices connected to its USALive® network as compared to approximately 42,000 devices as of the year before;

Increased the number of transactions processed during the quarter by 57% to 7.4 million, compared with 4.7 million transactions processed during the prior year's quarter;

Increased the dollar volume of transactions processed to $14.6 million, compared with $11.6 million in the year-ago quarter, an increase of 26%;

$3.8 million quarterly revenue represents highest level in five quarters;

Improved gross margin percentage on equipment sales to 32% from 30% in the quarter a year ago;

Reduced SG & A for the quarter by 20% compared with last year's first quarter;

Quick Start Program made up approximately 52% of ePort® equipment revenues for the quarter;

During the month of October 2009, the number of cashless transactions processed by the Company exceeded an average of 100,000 transactions per day

Mr. George Jensen, Chairman and Chief Executive Officer of USA Technologies said, "We believe that the strong increases in our metrics this quarter reflect the demonstrable returns our products offer our customers, the strategic initiatives that we implemented over the past year, and the growing trends towards cashless transactions. With our focus on expanding our customer base by creating lower-cost products and helping to finance customer purchases through our new Quick Start Program, we achieved improvements in revenue and gross profit on equipment sales."

"We have diversified our customer base, adding approximately 75 new ePort customers since June 30, 2009, for a total of approximately 600. While some of these customers represent large and well-known national organizations, the small- to mid-size customer has become an important part of our customer base. Not only have new customers driven our growth, but sales from existing customers have also contributed to our growth, with one-third of them buying additional units this quarter. We believe that trends such as these would help fuel our revenue growth," Mr. Jensen added.

"In addition to the operational improvements," Mr. Jensen said, "we are honored to have added two esteemed executives to our Board of Directors, and we look forward to the contributions that both Steven Barnhart and Jack Price will add to our Company. With extensive backgrounds in technology, consumer products and strategic leadership, we expect to benefit from their expertise as we expand our business and evaluate new opportunities in our rapidly expanding market. Further, our recently awarded 71st patent that covers a wireless system for communicating cashless vending transaction data and vending machine audit data to remote locations, adds confirmation to our industry leadership in developing cashless technologies."

Mr. Jensen concluded, "Over the past year our strategy included developing new, cost-efficient products that would meet the needs of our customers and help to spur revenue growth. We also placed emphasis on reducing our costs. These strategic initiatives have helped to improve our financial results. Our efforts, however, are not stopping there. We are currently reviewing and attempting to renegotiate some of our key vendor relationships, with the goal of reducing certain costs. We expect that these steps, if successful, would improve our revenue base as well as positively contributing towards improved margins."

To illustrate the progress the Company has achieved in certain key metrics, management is providing the following table which highlights sequential quarterly information.

Key Metrics Achieved by USA Technologies:

                                                                                               
                                              9/30/09   6/30/09   3/30/09   12/31/08   9/30/08 
 Number of devices connected to the network   57,000    52,000    48,000    43,000     42,000  
 Number of transactions (millions)            7.4       6.7       5.8       5.1        4.7     
 $ Value of transactions (millions)           $14.6     $13.5     $11.4     $10.6      $11.6   


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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 agreements with AT&T, Visa, MasterCard, First Data, Compass and others.