Message #16 From:
NewsBot Date: October 12, 2005 02:30:00 AM
USTT News SBW to Implement VendingMiser(R) Program for Washington State's Largest Utility; USA Technologies Closes 5,000 Order; Potential 7,000 Follow-up Order
MALVERN, Pa.--(BUSINESS WIRE)--Oct. 12, 2005--USA Technologies (OTCBB:USTT) announced today closing a contract for the purchase of 5,000 VendingMiser(R) devices by SBW Consulting Inc. (SBW), a leading energy management technology firm based in Bellevue, Washington.
USA Technologies' and SBW officials reported the 5,000 unit order was the first phase of a multi-tiered contract, with the second phase of the contract intended to be an additional 7,000 VendingMiser devices.
SBW provides energy efficiency services to both utilities and end users and includes among its customers Puget Sound Energy (PSE), Washington State's largest investor-owned energy utility, serving nearly one million electric customers and 650,000 natural gas customers.
SBW will have turnkey responsibilities for PSE's program including customer recruitment and installation. Over the next few weeks USA Technologies will help with training SBW staff in best practices for installation following the immediate shipment of 200 VendingMiser devices.
"This order of VendingMiser devices for use by Puget Sound Energy is growing evidence of the need for improving energy management to ease the burden on the Nation's energy grid," said Stephen P. Herbert, President and COO, USA Technologies. "America is facing a deepening energy crisis, with energy prices showing no sign of easing from their record highs. Many States, the Federal Government and large companies in the private sector are realizing that one of the few immediate solutions available to them is energy management technology which can be quickly mobilized to improve energy efficiency.
"USA Technologies' Energy Miser product line for vending machines, snack machines, coolers and other commercial appliances currently has an installed base in excess of 200,000 devices, and in fact, is now the Company's leading product line," he said.
The Company's VendingMiser product line has the capability of reducing the energy consumed by vending machines and coolers by nearly half, saving $100-$150 per year per unit, and there are an estimated 8 million vending machines in the United States alone. The Company believes it could ship between 75,000 and 100,000 Energy Misers in calendar 2006, which could help immediately reduce America's dependence on renewable sources of energy and lower demand on the nation's energy grid.
"We are continually looking for ways to improve energy efficiencies and reduce costs, and what better way than through energy management technology that can be installed quickly, at minimal cost," said Michael Baker, Vice President of SBW. "We have evaluated USA Technologies' VendingMiser technology and we're delighted to add it to our energy management product line. It delivers an immediate and dramatic result and pays for itself quickly. It should be standard equipment on every vending machine," he said.
Several Federal and State institutions have already introduced energy management programs to help reduce energy consumption. USA Technologies expects shortly to announce additional States and cities pursuing energy management programs, with more than 20 energy utilities already offering rebates on USA Technologies' energy management products.
Puget Sound Energy's Commercial Rebate Manager, Doug Dickson, said, "Our initial goal is to directly install 5,000 VendingMiser devices in the densely populated areas of King and Pierce Counties. By limiting the scope of the program in this way and controlling how installations are conducted it is cost effective to install the devices at no cost to the customer and still be confident that the measure will generate a great deal of energy savings." PSE has an aggressive goal of saving 190 Megawatt-hours during 2006 and 2007. This program will be one small part of PSE's program offerings to reach this goal. Puget Sound Energy will maintain its current rebate program of $80 for each VendingMiser installed in its electric service territory outside of the installation program area.
About USA Technologies:
USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries. USA Technologies is an IBM Business Partner. The Company has marketing agreements with Cingular Wireless, Honeywell, MEI, and ZiLOG Corporation. For further information on USA Technologies, please visit www.usatech.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, the ability of the Company to increase revenues in the future due to the developing and unpredictable markets for its products, the ability to achieve a positive cash flow from operations, the ability to obtain operating profit, the ability to obtain orders for its energy management products, the ability to obtain new customers and the ability to commercialize its products, which could cause actual results or revenues to differ materially from those contemplated by these statements.
