USA Technologies Awarded Second Crucial Automotive Telematics Patent

Intellectual Property Licensing and Marketing Firm Signed to Market Growing Portfolio of USA's IP Assets

MALVERN, Pa., Sept. 4 -- USA Technologies, Inc., (BULLETIN BOARD: USTT) announced today that it was issued a second crucial automotive telematics patent, and that it had signed Atlas Technology Partners ("Atlas"), a leading Pennsylvania Intellectual Property licensing and marketing firm, to begin licensing its growing arsenal of intellectual property.

"This latest patent secures our position in the automotive telematics industry, and with approximately 100 patents pending, issued and acquired, we believe we have reached a level of critical mass to begin a major marketing push to heighten awareness of our patented intellectual capital," said George R. Jensen, Chairman and CEO, USA Technologies. "Atlas will help us secure more licensing agreements to accelerate the marketing of our growing intellectual capital in a variety of key industries, including telematics, vending, information technology, and energy management and conservation," he said.

The latest issuance from the US Patent and Trademark Office is for patent number US6615186B1 for communicating interactive digital content between vehicles and Internet based data processing resources for the purpose of transacting e-commerce or conducting e-business. The patent includes accessing auto part, warranty, and customer databases. Transactions can include vehicle security and vehicle service management, and Internet based radio, audio and video, as well as interactive advertising, promotional offers and other remote data communications conducted in vehicles. The patent also covers remote monitoring of vehicle performance, including engine control system programming and setting adjustments, and monitoring and transmission of vehicle telemetry and metric data.

"All are key features in automotive telematics, especially in today's mobile environment, as more and more people use their automobiles as offices and places of doing business," said Mr. Jensen. "Atlas will become the licensing arm for USA Technologies to help us grow our business in the telematics marketplace, as well as all the other key markets we have targeted." Atlas will assign a team led by the company's Managing Director, Peter Haabestad, to identify potential markets for USA Technology's IP assets, evaluate market size and value, develop a list of potential licensing candidates and prioritize candidates, develop licensing strategy and execute agreements.

"Peter Haabestad has broad experience in patent licensing and technology commercialization and has successfully developed and commercialized several unique technologies in the medical and pharmaceutical industries," said Mr. Jensen. "We could not have asked for a more experienced or successful executive to head up our IP licensing business."

"USA Technologies' IP assets are at the leading edge in a variety of established and emerging markets -- such as networking of distributed assets, wireless and cash-less technology, automotive telematics and energy management -- and we see enormous potential for business growth and expansion," said Peter Haabestad, Managing Director, Atlas Technology Partners. "We believe USA Technologies with its rapidly growing portfolio of intellectual capital will quickly establish itself as a force in a variety of lucrative industries, and in the weeks and months ahead will expand its business into even more marketplace opportunities. We are delighted to be a business partner, sharing in USA Technologies' success."

USA Technologies' telematics patents are attracting the attention of the global automotive industry and USA Technologies executives have acknowledged they are in discussions with key businesses supplying the automotive industry. Talks are centering on licensing agreements, marketing partnerships and joint business relationships.

"Our goal in the telematics industry is to change the way motorists spend their time while driving. We believe in the future, vehicles will be able to provide the same services as an office equipped with a desktop compute and other technology, or a store. Vehicles will not be viewed as just vehicles for transportation, but centers of business, competence and entertainment, similar to an office or living room," said Mr. Jensen.

With 80 million cars on the road and rapid growth of telematics forecast worldwide, USA Technologies has identified telematics as an emerging market and a perfect fit for the company products and services. The Telematics industry is forecasting that by 2007, 42% (7.6 million) of all autos shipped in the US (18 million) will come equipped with some form of Telematics capability.

About USA Technologies:

USA Technologies is a leader in the networking of distributed assets, wireless non-cash and m-commerce transactions, associated financial/network services and interactive media technology and energy management. USA Technologies provides networked credit card and other non-cash/mobile commerce 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 the IBM Corporation and MEI and the ZiLOG Corporation. http://www.usatech.com/

About Atlas Technology Partners:

Atlas Technology Partners is a leading-edge Intellectual Property (IP) licensing and business development firm based in Berwyn, PA. Atlas Technology Partners provides IP licensing solutions to multinational corporations, emerging companies and research centers seeking to fully capitalize on the value of their IP assets. Atlas Technology Partners' management and staff combine unique industry skills and experience, licensing expertise and disciplined approaches to generate new revenue streams from underleveraged IP portfolios. http://atlastechpartners.com/