CineVend Selects USA Technologies' e-Port To Provide Cashless Vending for Movies and Soundtracks

CineVend Selects USA Technologies' e-Port To Provide Cashless Vending for Movies and Soundtracks

USA Technologies e-Port Enters Multi-billion dollar entertainment market

MALVERN, Pa., June 23 /PRNewswire-FirstCall/ -- USA Technologies (BULLETIN BOARD: USTT) announced today that it has entered the cashless vending market for movies and sountrack through the use of its e-Port(R) networked cashless transaction device.

The e-Port has been chosen as the cashless transaction solution by CineVend, a Seattle, Washington, company that has recently launched a business to vend CDs and DVDs located near the exit to each auditorium in the Cineplex

"The concept is to market CD soundtracks and DVD's complimenting the movie playing at the theatre to capture both the impulse buyer and the movie patron who want to take the movie and sound track home, or buy them as gifts," said Gregory R. Kriegler, President, CineVend. "We found USA Technologies' e-Port and network offered the best value, in simplicity, ease of use, efficiency, and cost."

The e-Port is already being used with a growing list of non-traditional items being vended, enabling companies to open up a new distribution channel. Some of the non-traditional items included: cellular phones and calling cards, office equipment, sunscreen products, automotive components, and gourmet foods.

"In evaluating the business model, it was clear that the e-Port was going to be the key to bringing this strategy to the marketplace," said Mr. Kriegler. "It does more than save us in set up cost. It provides us with a clear competitive advantage over cash acceptance and wired credit card acceptance. The cost of doing business without the e-Port would have undermined the entire business model."

CineVend has developed a Mini Vender, called the CinePod, equipped with the e-Port that is easily mounted to a wall near entrance/exit of each individual theater within a movie house. The company already has installed the CineVend mini vending machine in LandMark Cinemas. Customers simply make a selection from large, colorful photographs, and then swipe their credit card. The transaction takes seconds.

A sample of the CDs and complimenting DVD's offered by CineVend are The Longest Yard: soundtrack and 1974 original; Star Wars: Episode II and soundtrack; Layer Cake: Lock, Stock and two smoking barrels, and soundtrack; Madagascar: activity disc (learn to draw the characters and other interactive features) and soundtrack; and, Sisterhood of the Traveling Pants: soundtrack

"It's exciting when we see young, enthusiastic entrepreneurs take our e-Port and launch a new and exciting market opportunity," said John McLaughlin, Vice President, Sales, USA Technologies. "Increasingly, our cashless transaction device is leading to new business opportunities in non traditional vending areas, opening up entirely new businesses without the need to open up expensive stores or office space. At the same time, well established vending businesses are also using our e-Port to expand into new markets, and especially in higher priced specialty items where it makes sense to pay with a credit or debit card."

"Cashless vending is expanding the market opportunity nationally and internationally for the vending industry," said McLaughlin. "It allows entrepreneurs and businesses to market and sell virtually anything wherever a vending machine can be located. What's more, cashless vending allows consumer access 24x7. The vending machines and kiosks are always operating, and always available for generating business."

To find out more about CineVend, 206 388 3784, http://www.cinevend.com/

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. The Company has marketing agreements with Cingular Wireless, Honeywell, MEI, Unilever and ZiLOG Corporation. For further information on USA Technologies, please visit http://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 or install its products including the G-5 e-Port, 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.

USA Technologies Contact: Investor Relations Contact: George R. Jensen, Jr., Chairman & CEO Ken Sgro Stephen P. Herbert, President & COO CEOcast, Inc. Phone: (800) 633-0340 Phone: (212) 732-4300 e-mail: sherbert@usatech.com

Bob Giordano / Sarah Shepard ROI Group Associates, Inc Phone: (212) 495-0200, ext.10/17

Source: USA Technologies

CONTACT: George R. Jensen, Jr., Chairman & CEO or Stephen P. Herbert, President & COO, sherbert@usatech.com, both of USA Technologies, 1-800-633-0340; Ken Sgro of CEOcast, Inc., +1-212-732-4300; or Bob Giordano, +1-212-495-0200, ext. 10, or Sarah Shepard, +1-212-495-0200, ext. 17, both of ROI Group Associates, Inc

Web site: http://www.usatech.com/ http://www.cinevend.com/

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