EXHIBIT 99.1

                                                                    NEWS RELEASE

                                                           For Immediate Release

USA Technologies Contact:                         Investor Relations Contact:
------------------------                          --------------------------
George R. Jensen, Jr., Chairman & CEO             Ken Sgro
Stephen P. Herbert, President & COO               CEOcast, Inc.
Phone: (800) 633-0340                             Phone: (212) 732-4300
e-mail: sherbert@usatech.com


            USA TECHNOLOGIES RECIEVES $4.5 MILLION EQUITY INVESTMENT
                FROM A LARGE BOSTON-BASED INSTITUTIONAL INVESTOR
                            ON BEHALF OF ITS CLIENTS

         COMPANY RECEIVES A TOTAL OF $5 MILLION THROUGH THE SALE OF COMMON STOCK

MALVERN,  PA,  October 3, 2003 -- USA  Technologies,  Inc. (OTC Bulletin  Board:
USTT),  announced  today  that it had  raised a total of $5  million  in  equity
capital  through the sale of 20,000,000  shares of restricted  common stock to a
large Boston-based  institutional  investor on behalf of its clients and several
other investors.

The shares of common stock have not been registered  under the Securities Act of
1933, as amended,  and may not be subsequently  offered or sold by the investors
absent registration or applicable exemption from the registration  requirements.
USA Technologies has agreed to file a registration statement covering the resale
of the common stock by the investors.

"We believe this investment  represents the strongest endorsement to date of our
products,  services and business model," said George R. Jensen, Chairman and CEO
of USA  Technologies.  "This is the largest  investment to date by institutional
investors in the Company - and is  exceptionally  well timed - as we believe the
Company is now positioned for significant growth."

"Today,  all of the elements are in place for USA  Technologies  to succeed.  We
have the strongest  balance sheet in our history and our cash position has never
been better.  We have a growing revenue stream and customer base that is rapidly
accelerating. Our product line continues to expand and positively impact a range
of industries,  from vending and business  equipment,  to energy  management and
commercial laundry."

This  financing  comes after USA  Technologies'  successful  acquisition  of the
assets of Bayview Technology Group; a profitable Denver-based company recognized
as a leader in intelligent energy management  solutions for the vending industry
and commercial  appliances.  Last week, USA Technologies  appeared at the Edison



Electric  Institute  National Expo in New Orleans,  where its energy  management
solutions  headlined  the Expo's  exhibits.  These  solutions,  which  generated
tremendous  interest,  included  solutions that Albertson's,  one of the world's
largest  food  and drug  retailers,  as well as  Austin  Energy,  have  recently
purchased  from the  Company  to reduce  energy  consumption  and  emissions  at
thousands of locations.

About USA Technologies:
-----------------------
USA Technologies is a leader in the networking of distributed assets,  wireless,
cashless  transactions,   associated   financial/network  services,  and  energy
management.  USA Technologies  provides networked credit card and other cashless
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,  MEI and the ZiLOG
Corporation. http://www.usatech.com

Statement under the Private Securities Litigation Reform Act:
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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,  the  ability to
increase revenues, the ability to achieve  profitability,  the ability to obtain
orders for its  products,  the ability to obtain new  customers,  the ability to
meet installation goals, economic,  competitive,  governmental impacts,  whether
its pending  patents  will be granted or  defendable;  validity of  intellectual
property  and patents of USA,  the ability of USA to license  its  patents,  the
ability of USA to commercialize its developmental products, technological and/or
other factors, which could cause actual results or revenues to differ materially
from those contemplated by these statements.