USA Technologies Received 3 Additional Patents in the Automotive Telematics Market

MALVERN, Pa., Dec. 16, 2004 -- USA Technologies, Inc. (BULLETIN BOARD: USTT) , announced today that it has received three Notices of Allowance from the US Patent and Trademark Office for patent applications relating to wireless telematics technology.

These three allowed patent applications when issued, will bring the Company's total to 58 and will contribute to USA Technologies' intellectual property for connecting a vehicle to the Internet through a wireless device. Inventions under these allowed patent claims relate to vehicle security and vehicle telemetry.

"We believe that these patents could be beneficial to the telematics industry supplying the global automotive industry," said Stephen P. Herbert, President and COO, USA Technologies. "Technology related to these allowed patent applications could enable car dealerships to monitor the health and maintenance of cars, diagnose a possible maintenance issue and even order parts, all before their customer's car even enters the dealer's lot."

USA Technologies already has a patent relating to technology for transacting e-business related to identifying and procuring automotive service and vehicle replacement parts.

"Another application of such a system could enable a car owner, or the police, to monitor the location of their stolen car. The system could even give the user the ability to shut down the engine of the stolen car, remotely. All via the Internet," said Mr. Herbert.

USA Technologies noted that discussions were underway to license its intellectual property to leaders in wireless telematics technology, who are supplying the global automotive industry. In addition, USA Technologies is interested in licensing its technology to corporations pursuing business opportunities in wireless networked cashless vending, energy management, and college laundries.

The discussions are intended to leverage the Company's patents and networking technology, some of which could be applied to vehicles to connect to a wireless network for performance diagnostic services, as well as the ability to receive and deliver content and conduct e-commerce from the vehicle.

An important component of USA Technologies' intellectual property strategy is to generate revenue from licensing, from its portfolio of 58 patents granted and 30 pending. Just this past quarter, USA Technologies signed a technology licensing agreement with Mars Electronics "MEI", the world's leading manufacturer of payment systems, allowing MEI to use certain intellectual property to connect to USALive(R), the company's network for e-Port(R) credit card transactions.

"We made the decision last year to expand our wireless networking technology into the automotive telematics marketplace, and are hopeful that our vision and investment will ultimately deliver results," said Mr. Herbert. "We believe the Company is a leader in the wireless market, targeting vending, retail kiosks and business centers, and telematics was a natural next step."

Motorists with telematics services installed in their cars in the future can look to have information routed directly to a secure Web page -- possibly containing the vehicle's performance characteristics, including operating conditions, mileage and diagnostic trouble codes. Another wireless Internet link could allow automotive retailers to inform the vehicle owner via e-mail, about engine performance, service opportunities, appointment scheduling and emission testing. Telematics already enables vehicle tracking and positioning, helping motorists navigate and provide security.

"We are interested in taking our patents beyond just protecting the technology," said Mr. Herbert. "We are would like to monetize the significant investments we have made in developing the technology via a licensing campaign."

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 AT&T, Honeywell, MEI, Unilever and ZiLOG Corporation. Google usatech