Coinstar Announces Exercise of Over-Allotment Option.

BELLEVUE, Wash. -- Coinstar, Inc. (Nasdaq:CSTR), today announced that the underwriters of its recent public offering have exercised their over-allotment option to purchase an additional 450,000 newly issued shares of common stock of the company at $25.00 per share, less applicable underwriters' discounts. Coinstar will receive net proceeds of approximately $10.7 million in connection with this exercise. The sale of the additional shares pursuant to the exercise of the over-allotment option is expected to close concurrently with the closing of the firm shares on December 20, 2004, subject to customary closing conditions.

J.P. Morgan Securities Inc. and Banc of America Securities LLC are acting as the representatives of the underwriters for the offering. Thomas Weisel Partners LLC, Craig-Hallum Capital Group LLC, Delafield Hambrecht, Inc. and Merriman Curhan Ford & Co. are also underwriters for the offering.

A prospectus supplement and accompanying prospectus has been filed with the Securities and Exchange Commission. The registration statement relating to these securities was filed with the Securities and Exchange Commission on November 16, 2004 and has since been declared effective.

Copies of the prospectus supplement and accompanying prospectus relating to this offering of common stock may be obtained from J.P. Morgan Securities Inc., Prospectus Department, One Chase Manhattan Plaza, Floor 5B, New York, NY 10081, telephone [phone], and Banc of America Securities LLC, Attn: Prospectus Department, 100 West 33rd Street, New York, NY 10001, telephone [phone], or email: [e-mail].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About Coinstar, Inc.

Coinstar, Inc. (Nasdaq:CSTR) is a multi-national company offering a range of coin counting, entertainment and electronic payment services.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are based on the current intent and expectations of the management of Coinstar, Inc. of future performance, and involve risks and uncertainties that are difficult to predict. Coinstar, Inc.'s actual results and the outcome of events may differ materially from those expressed in or implied by the forward-looking statements due to risks detailed in Coinstar, Inc.'s public filings with the Securities and Exchange Commission.