The lawsuit alleges that AlphaNet signed a non-disclosure / non-use agreement prohibiting AlphaNet from using confidential information supplied to them by USA. The lawsuit also alleges that in October 1997, AlphaNet terminated discussions and soon began marketing The Office�. The lawsuit further alleges Office� unlawfully utilized confidential information in violation of the non-disclosure agreement and infringed USA�s patents. Both USA�s Business Express� and AlphaNet�s The Office� are self-serve, 24 � hour business centers. The complaint requests injunctive relief as well as monetary damages against AlphaNet.

�We believe that AlphaNet breached a signed non-disclosure / non-use agreement and infringed upon USA�s patents,� said George R. Jensen, Jr., president and chief executive officer of USA Technologies. �We look forward to presenting our case in court and prevailing in this matter.�

USA Technologies is the developer and owner of TransAct�, a proprietary technology that allows consumers to purchase items for as little as one dollar, using their credit cards. These transactions were once cost � prohibitive, but USA�s TransAct� technology is quickly making the �cashless revolution� a reality. TransAct�s� patented technology is already in use nationwide in the form of MBE Business Express�, a joint venture product with Mail Boxes Etc. Activated with a credit card utilizing TransAct�, MBE Business Express� is a self-serve, automated business center, allowing the use of a computer, the Internet, a photocopier, printer and fax machine 24-hours per day.

USA Technologies is a leading owner and licensor of networked credit card � activated control systems for the personal computer, photocopier, facsimile and laptop printing capabilities. The company�s proprietary technologies make available unattended, point-of-sale control systems for credit card payments.

Statement Under the private Securities Litigation Reform Act
With the exception of the historical information contained in this release, the matters described herein, including the ultimate outcome of the lawsuit filed by USA, contain forward � looking statement that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limited to product acceptance, economic, competitive, governmental, results of litigation, validity of intellectual property and patents of USA, technological and / or other factors, which are outside the control of the Company