Adoption of Paperless Payroll Services Grows as Functionality is Offered Through Coinstar Centers.

Business Editors

BELLEVUE, Wash.--(BUSINESS WIRE)--Feb. 4, 2004

FSV and Coinstar team up to offer electronic payroll services

to an estimated 300,000 users by fall

Coinstar, Inc. (Nasdaq: CSTR) today announced plans to expand access to electronic payroll services from FSV Payment Systems Ltd. (FSV) to nearly its entire 10,000-plus-machine network. Electronic payroll functionality is currently available at approximately 1,000 Coinstar Centers in supermarkets across the country, and by April of this year, most Coinstar Centers will be enabled with wage statement and balance inquiry features.

Employers offering FSV's PAYCHEK PLUS(TM) payroll debit cards to employees also benefit from convenient and cost-saving payroll services, including ePayStub(TM) wage statements, payroll debit card balance inquiries, and payroll cash vouchers -- available exclusively through Coinstar Centers and FSV. By fall of 2004, FSV expects to have three hundred thousand employees enrolled in payroll debit card programs through their employers.

"As a leader in self-service kiosks, Coinstar's vision is to bring a range of e-payment services to Coinstar Centers across the country," said Rich Stillman, president of Coinstar Inc. "Self-service payroll services is just one of the ways that we bring convenience and simplicity to the lives of consumers. In addition, our supermarket partners benefit from increased foot traffic and revenue without expending cost or labor."

Payroll Debit Cards are growing in popularity, especially among employers with large workforces that may be geographically diverse, have high turnover, or an employee base without access to bank accounts. In the United States, the Federal Reserve Board Survey of Consumer Finances (2001) reported that approximately 13 percent of families did not have a checking account.

According to a 2003 American Payroll Association (APA) survey, industries most likely to adopt payroll debit cards include manufacturing, retail, supermarket, quick serve, restaurant, hospitality and service. FSV customers with workforces in excess of 5,000 that are currently rolling out these new payroll services include Bahama Breeze, Del Taco, Eat 'n Park, Goody's, Greyhound, Olive Garden, Pomerantz, Red Lobster, Talent Tree, Westaff, and University of Illinois.

"Depending on the size of their employee base, employers may save hundreds of thousands of dollars each year by implementing payroll debit cards," said Eric Miller, chief executive officer of FSV Payment Systems, Inc. "The savings come through eliminating the need for creating paper checks and printed wage statements. This revolutionary way of delivering payroll and related services through Coinstar allows employers to go completely paperless, while still meeting payroll information requirements."

About Coinstar, Inc.

Coinstar, Inc. (Nasdaq: CSTR) owns and operates the only nationwide network of supermarket-based kiosks that offer coin counting and other electronic services. The company has more than 10,000 machines linked by a sophisticated interactive network throughout the United States as well as in Canada and the United Kingdom.

About FSV Payment Systems Ltd.

FSV Payment Systems offers a robust suite of unique, host-based stored-value and payroll debit card solutions direct to large employers and to financial institutions through an exclusive agreement with Fiserv, Inc. (NASDAQ: FISV). The FSV processing platform is both proprietary and configurable, allowing for the delivery of both standard and non-standard programs based on customer requirements. For more about payroll debit cards and the delivery of paperless payroll, go to the American Payroll Association Online Payroll Debit Card Resource Center: www.americanpayroll.org , and click the navigation button for FSV Paycard Info. For more about FSV, go to www.fsvpaymentsystems.com , www.paychekplus.com, or www.payrolldebitcards.com .

Coinstar is a registered trademark of Coinstar, Inc. Coinstar Center is a trademark of Coinstar, Inc. All other trademarks and registered trademarks are the property of their respective owners.

This press release contains forward-looking statements relating to Coinstar, Inc. that involve a number of risks and uncertainties. These are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. The forward-looking statements are not guarantees of future performance and actual results may vary significantly from the results expressed or implied in such statements. Differences may result from actions taken by Coinstar, Inc., as well as from risks and uncertainties beyond the company's control. Factors that could cause or contribute to such varying results include, but are not limited to, the ability to perform our obligations to and retain our agreements with our existing retail partners and the ability to obtain new agreement with potential retail partners for the installation of new technology, acceptance and adoption of services by consumers, additional potential competitors, and the impact of legal or governmental regulatory action. The foregoing list of risks and uncertainties is illustrative, but by no means exhaustive. For more information on factors that may affect future performance, please review the most recent reports filed by Coinstar, Inc. with the Securities and Exchange Commission. These forward-looking statements reflect Coinstar Inc.'s expectations as of February 4, 2004. Coinstar Inc. undertakes no obligation to update the information provided herein.