NEWS RELEASE
For Immediate Release
Investor Relations Contacts:
Dian Griesel, Ph.D.
Juan Dominguez
The Investor Relations Group
Phone: 212-825-3210
USA Technologies Contacts:
George R. Jensen, Jr., Chairman & CEO
Stephen P. Herbert, President & COO
Phone: 800-633-0340
e-mail: sherbert@usatech.com
Company Rapidly Emerging as Leader in Cashless
Micro-Transaction Technology and Services
WAYNE, Pa., May 24, 2001 -- Less than a week after announcing the expansion of its Authorized Reseller Program, USA Technologies, Inc. (OTC Bulletin Board: USTT) has received a preliminary order for 10,000 e-Port™ terminals.
This order for 10,000 e-Ports places this particular partner advantageously to acquire a portion of USA’s first mass produced e-Ports. The order indicates that specific ship dates and quantities are to be provided at a later date by our partner. While there can be no guarantee that this will occur, this preliminary order for e-Port products could result in several million dollars in revenue for USA Technologies.
The Company`s successful unveiling of e-Port at recent trade events for the multi-billion dollar global vending industry has resulted in a substantial increase in inquiries for this exciting new technology. Stephen Herbert, President and Chief Operating Officer for USA Technologies stated, "We are rapidly expanding our distribution and reseller network, setting the stage for our vision to initially mass produce and distribute hundreds of thousands of e-Ports."
USA Technologies is expected to generate revenue from the sale and installation of e-Port, network service fees, and interactive advertising. The Company is in the forefront of the growing cashless micro-transaction worldwide revolution. "This is a market which we believe will grow exponentially over the next few years, and USA is well positioned to be a major force in the space," said Mr. Herbert. VISA estimates that U.S. transactions below $10.00 total nearly $400 Billion annually and are virtually untouched by credit cards. This market to date has been virtually untapped due to the traditionally high costs associated with micro-transactions which USA’s e-Port overcomes.
"We have inquiries coming in from strategic partners, Original Equipment Manufacturers (OEMs), and current and new authorized resellers, " continued Mr. Herbert. "Many inquiries have been generated by the promotion and publicity we received at the NAMA vending exposition earlier this year where some of the biggest players in the vending and communications industries featured our technology in their products, " he said.
Since NAMA, several major vending machine manufacturers and distributors, as well as office equipment suppliers have entered discussions with USA Technologies, seeking to either install e-Port technology and connectivity into their products, or resell it independently. The significant increase in interest in e-Port resulted in USA Technologies last week announcing the expansion of its Authorized Reseller Program to target the multi-billion dollar global vending industry.
USA Technologies is responding to the demand from the marketplace by working with a number of strategic partners to help streamline the manufacturing process, and put in place a worldwide network of resellers to distribute its technology and associated network services to markets worldwide.
e-Port would be the world`s first non-PC e-commerce device that could be embedded into vending machines, gas pumps, office equipment and almost any kind of point-of-sale terminal. The technology enables the conversion of unattended points of sale into intelligent "store fronts", connected to the Internet, and capable of communicating operational data to operators, conducting cashless micro-transactions and providing interactive media at point of sale. It could come fitted with an interactive, video screen that features rotating banner advertisements, giving location owners the ability to communicate with and improve the buying experience of consumers, promote products, provide free access to web based media such as news, sports and weather and possibly generate incremental revenues from interactive media.
USA Technologies is currently in negotiations with major companies in the Communications, IT and other industries who are interested in partnering with USA Technologies on its e-Port product line. In March of this year, USA Technologies announced a Strategic Alliance with Marconi Online Systems. The alliance creates the most comprehensive end-to-end technology solution for the vending industry by bringing together Marconi Online`s Intelligent Vending™ service with USA Technologies` cashless payment and interactive multimedia capabilities delivered through USA’s e-Port™ technology. The combined Marconi Online and USA Technologies product offering will enable vending machines to become intelligent, wireless networked machines capable of reporting machine status, handling many forms of cashless payments, and opening up new opportunities in advertising and promotions through interactive media services.
About USA Technologies:
USA Technologies is recognized as a leader in cashless micro-transactions and interactive media technology and associated financial services. USA Technologies provides credit card activated and other cashless systems, allowing end users, ranging from consumers to business professionals,
to communicate, conduct business or make ordinary commerce transactions, outside of the home or workplace. USA Technologies is an IBM (NYSE: IBM - news) Business Partner and an inaugural member of the Sprint (NYSE: FON – news) Enabling Application Service Provider Program for e-commerce. It has also established strategic relationships with a number of global IT, multimedia, and telecommunications companies including Marconi Online
Systems, RadiSys Corporation, DoubleClick Inc, and Xerox Corporation. Visit the USA Technologies home page at wwwusatech.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 product acceptance, commercialization by USA of a web-enabled e-Port and network, economic, competitive, governmental, results of litigation, validity of intellectual property and patents of USA, the ability of USA to commercialize its developmental products, our strategic partner actually acquiring e-Port terminals under the preliminary order described above, and/or other factors which could cause actual results or revenues to differ materially from those contemplated by these statements.
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