Albertsons Signs New Contract with Coinstar to Offer Increased Services and Expand Distribution.
BELLEVUE, Wash.--(BUSINESS WIRE)--March 11, 2004
New Agreement Spans Albertsons' Six Chains, Including More
Than 2,000 Grocery and Drug Store Locations
Coinstar, Inc. (Nasdaq:CSTR) today announced a new multi-year agreement with Albertsons, Inc., its second largest customer, representing approximately 13 percent of the Company's revenue in 2003. Coinstar(R) machines are currently installed in more than 1,400 Albertsons supermarket locations throughout the United States, and by the end of March 2005, the Company expects to offer coin counting and additional services in nearly all of Albertsons' grocery and drug store locations, totaling more than 2,000 distribution points.
"Albertsons is a long-standing customer, and we're delighted that they are renewing the relationship and expanding their commitment by adding additional services, new geographies, and new channels of distribution," said Rich Stillman, president of Coinstar, Inc. "We look forward to strengthening our partnership with Albertsons to generate more revenue for them, while increasing value to our shareholders."
Coinstar machines will be installed throughout the next 12-14 months in an estimated 400 Albertsons' drug stores, including Osco Drug and Sav-on, and nearly all of its remaining 200 uninstalled supermarket locations.
Albertsons is one of the world's largest food and drug retailers, with annual revenues of approximately $36 billion. Based in Boise, Idaho, Albertsons operates approximately 2,300 retail stores in 31 states across the United States. Its six grocery and drug banners include Albertsons, Jewel-Osco, Osco Drug, Sav-on Drug, Super-Saver Foods, and Acme Markets.
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.
This press release contains forward-looking statements relating to the expansion and growth of Coinstar, Inc.'s business 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," "goals," 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 Coinstar, Inc.'s control. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause or contribute to such differences include, but are not limited to, interruption or delay in manufacturing or installing machines or new technology at Albertsons, continuation of Coinstars' relationships with service providers, the ability to bring new and repeat customers to Coinstar machines, additional potential competitors, the ability to identify and deploy additional product offerings, and uncertainties relating to the ultimate success of new business initiatives. 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 with the Securities and Exchange Commission by Coinstar, Inc. These forward-looking statements reflect Coinstar, Inc.'s expectations as of March 11, 2004. Coinstar, Inc. undertakes no obligation to update the information provided herein.
Coinstar is a registered trademark of Coinstar, Inc. All other trademarks and registered trademarks are the property of their respective owners.