WestPark Capital, Inc. Initiates Research Coverage for USA Technologies

Dec 29, 2000, 00:00 ET from WestPark Capital, Inc.

    LOS ANGELES, Dec. 29 /PRNewswire/ -- The following is being issued by
 WestPark Capital, Inc., a member of the National Association of Securities
 Dealers, CRD Number 39914:
     WestPark Capital announced today that it has initiated research coverage
 of USA Technologies (OTC Bulletin Board:   USTT) with a BUY recommendation.  USA
 Tech's proprietary technology (11 patents granted, 36 pending in the United
 States, 14 pending worldwide) augurs well to position the Company as the
 leading provider of unattended credit card activated control systems,
 especially in the micro-transaction category, a market VISA estimates at
 $400 Billion in the USA alone.
     Sales for the fiscal year ending June 2001 are projected at $8 million, up
 by a factor of four from $2 million in sales for the fiscal year ended June
 2000.  WestPark forecasts the Company achieving profitability in this fiscal
 year's fourth quarter ... with EPS increasing to $0.60 in fiscal year 2002.
 Driving this growth are sales of e-Port(TM), a patented and proprietary
 unattended credit card control system that basically provides non-PC Internet
 access to facilitate e-commerce.
     The Company has assembled powerful strategic alliances with IBM
 (NYSE:   IBM) to migrate its current network to the Internet for worldwide
 distribution, with RadiSys (Nasdaq:   RSYS) to manufacture e-Port.  USA Tech is
 also an inaugural member of Sprint's Enabling Application Service Provider
 program (eASP), a network that seamlessly meshes non-PC machinery to the
 Internet via the Company's e-Port(TM) unit.
     Three years under development and Beta-tested with leading American
 vending machine manufacturers, e-Port(TM) was launched last October at the
 National Automated Merchandising Association's trade show (NAMA), the largest
 in the world.  As prevalent as ATMs and Pay-at-Pump machinery have become on
 the commercial landscape, vending machines and point-of-sale terminals
 -- e-Port's primary market focus -- represent a considerably larger market by
 a factor of almost 18.
     Vending machines:           7,000,000       ATMs:            700,000
     Point-of-Sale terminals:    9,000,000       Pay-at-Pump:     200,000
         Total:                 16,000,000       Total:           900,000
     USA Technologies recently concluded its first multi-million dollar
 contract for 2,000 e-Port(TM) units to Self Serve Centers.  Additional
 contracts emanating from the NAMA trade show with even larger vending machine
 operators are expected to materialize throughout the first half of calendar
     WestPark's EPS model for fiscal 2002 anticipates 50,000 e-Port(TM) units
 sold and delivered nationwide.  At under $1,000 per unit, WestPark believes
 $45 million in sales in fiscal 2002 is a realistic top-line achievement.  "Our
 near term target stock price (6 months) is $3/share," said Tom Heysek, Market
 Strategist for WestPark, adding "by the middle of next year, the market will
 be looking to USA Tech's projected results for FY 2002, and at $3, this
 represents a multiple of only five times that fiscal year's expected EPS."
     Longer term Heysek stated that a price target for more patient investors
 in the $5 to $10 range is a defensible investment point of view.
     (1)  This report is for information purposes only.  The information has
 been taken from trade and statistical sources which we deem reliable.  We do
 not represent that it is accurate and it should not be relied upon as such.
     Any opinions expressed herein, reflect our judgment at this date and are
 subject to change.  Under no circumstances is it to be construed as an offer
 to sell or a solicitation to buy any security.  The information contained
 herein has been obtained from sources believed to be reliable, however their
 accuracy and completeness and that of the opinions based thereon, are not
 guaranteed.  WestPark Capital, Inc., its affiliates, subsidiaries and/or
 officers and employees may from time to time acquire, hold and/or sell a
 position in the securities mentioned herein.  WestPark Capital, Inc. may also
 perform for, or solicit from any company mentioned in this report, investment
 banking or other services.

SOURCE WestPark Capital, Inc.