USA Technologies e-Port(R) Cashless Solution

USA Technologies (OTC Bulletin Board: USTT) announced today that its e-Port® cashless solution has completed a consumer survey which confirmed that movie theatre patrons prefer to buy drinks from a vending machine using a debit or credit card rather than use cash or make purchases from the cinema snack shop.

The study released today proved a significant change in consumer behavior in regard to purchasing drinks at a movie theater. Movie goers at the Regal Cinemas in Philadelphia, when given the ability to use their credit or debit cards, chose to use the vending machines over standing in line to purchase a beverage at the snack shop. Additionally, consumers who preferred to use the cashless vending machines were less concerned with price when using their debit or credit card.

The outcome of this initiative has turned a failing cash- only vending machine initiative into a success. Since installing the credit and debit card capability to the vending machines, there has been a dramatic increase in business. Vending sales volume rose 139% within a 12 month period, with credit/debit card transactions accounting for over 30% of all transactions, generating between $300 and $900 a month in cashless transactions.

"Our findings reinforce our belief that consumers prefer the convenience and ease of use of debit and credit cards," said Jim Turner, VP and General Manager, Intelligent Vending®, USA Technologies. He continued, "Movie goers largely ignored the vending machines when they accepted cash only, but immediately after the e-Port® cashless transaction device was installed, consumers began to use the machines, therefore increasing sales by one-third. Almost one out of every three vending transactions was paid for with a debit or credit card. Additionally, the survey determined that consumers were making more multi vends with their debit or credit cards, purchasing two or three products per card swipe."

Prior to installing USA Technologies' e-Port®, Regal Cinema's vending operator attempted to lessen lines at the Cinemas snack shop by installing 10 glass-front, cash only vending machines in four cinemas to provide movie goers with improved access to beverages. Sales were low due to higher vending machine prices for the beverages and the fact that the machines were frequently out of change. But before abandoning the project, Regal's vending operator came up with a solution and decided to try USA Technologies' e- Port® cashless transaction services.

"Early financial projections indicate that the cashless solution will generate a 100% increase in incremental operating profits while limiting any decline in sales volume," said Mr. Turner. "It supports the cinema findings where many consumers still preferred to purchase beverages from the vending machines using their credit cards, rather than at the snack shop counter."

The consumer survey conducted by USA Technologies is part of a series to measure the impact of cashless vending on sales throughput, multi purchases, vandalism and theft, and customer convenience. The Company continues to strive to enhance its customer's profits by providing them with up-to-date industry statistics in regard to the implementation of the e-Port® and providing ease of use for its customers by providing them with the option of paying via credit or debit card, which continues to prove to be the general publics preferred payment option.

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