USA Technologies Welcomes Texas Law to Improve Vending Machine Efficiency as Historic
Initiative Seen to Challenge Others to Follow State's Environmental Lead
MALVERN, PA, September 17, 2007 - USA Technologies (NASDAQ: USAT) has welcomed the historic Texas legislation requiring vending machines in public buildings to be equipped with energy saving devices as part of a program to improve energy efficiency in the state.
USA Technologies, provider of the EnergyMiser® energy management product line for vending machines and commercial glass-front coolers, believes the legislation will drive awareness that state governments can make a significant difference in lowering energy consumption and C02 emissions nation-wide.
"We commend Texas for its leadership and being the first state to pass legislation to improve the energy efficiency of vending machines in government buildings," said Stephen P. Herbert, President and COO, USA Technologies. "USA Technologies is excited by the news because the Texas cities of Austin and more recently Houston, are already installing our VendingMiser® and VM2iQ®, products from the EnergyMiser family of energy controls, on refrigerated beverage vending machines, and this latest initiative is clear evidence of Texas taking the initiative to encourage others to follow its lead."
The legislation will relate to vending machines in all government buildings, including schools and public universities, and state parks.
"With this legislation, I want Texas state government to be an example for private and public entities that energy efficiency is easy and cost-efficient," said Texas Representative David McQuade Leibowitz. "There's no need for the state to pay for a vending machine to be lit up like a Christmas tree in a state building that closes at 5 p.m. and is empty for the next 15 hours. Energy management devices are useful tools that I hope everyone begins to use to save money and energy."
Traditional refrigerated vending machines cost $400-$500 a year to operate, but when equipped with the EnergyMiser, the electricity consumed is reduced by nearly half.
The Texas legislation became law on September 1, 2007. The legislation states that operators of vending machines in buildings owned or leased by the State Government are required to ensure they are fitted with an internal or external energy saving or energy-management device. Operators will be subject to a fine of up to $250 a year for each vending machine found in violation.
Austin Energy was one of the first power utilities in the nation to install VendingMiser on vending machines and glass-front coolers under the utility's "SmartVendor Program." Austin Energy has installed EnergyMiser in more than 9,000 vending machines and coolers.
The City of Houston recently announced it was installing VendingMiser in vending machines in city government buildings. Earlier this year, the City of Oklahoma, did the same.
While Texas is believed to be the first state to regulate that vending machines in government buildings be equipped with energy management technology, a growing number of cities, communities and counties nationwide are also installing VendingMiser on vending machines on their own initiative.
Recent EnergyMiser deployments have occurred in Phoenix and Tucson, Arizona; 15 cities in the South Bay of Los Angeles, and seven cities in Northern California's Humboldt County.
"Some communities are installing VendingMiser in vending machines and challenging business to follow their lead, while nearly 30 energy utilities nationwide are offering rebates as incentive to further encourage VendingMiser installations," said Mr. Herbert.
The Federal Government is also participating, with the General Services Administration (GSA), the Federal Government's purchasing arm, approving the EnergyMiser product line, allowing State and Federal governments and agencies to purchase directly from USA Technologies.
USA Technologies already includes among its EnergyMiser customers America's biggest military bases, major retail chain stores and supermarket chains, universities and school districts.
USA Technologies believes if the estimated four million refrigerated vending machines and 10 million coolers in America were equipped with EnergyMisers, calculated at 35 percent savings, the approximate annual impact could be a:
- Reduction of 15,330,000,000 in kilo watt hours
- Savings of approximately $1,379,700,000
- Reduction of 22,995,000,000 lbs of C02
- Reduction of 7,000,000 tons of coal
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, the ability to continually obtained increased orders of its products, 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.
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