Coinstar Explores Delivery of Prepaid Cash Cards Through Its Nationwide Network.Business Editors, High-Tech Writers BELLEVUE, Wash.--(BUSINESS WIRE)--June 5, 2000 Coinstar Inc. (Nasdaq:CSTR CSTR Centre for Speech Technology Research CSTR Canister CSTR Continually Stirred Tank Reactor CSTR Center for Software Testing Research (Florida Tech) CSTR Combat System Trial Rehearsal (US DoD) ), a leading coin counting and e-services company, today announced it is exploring opportunities to deliver prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. cash cards through its nationwide network of more than 7,500 Coinstar machines. Coinstar will work with DataWave Systems (CDNX CDNX See Canadian Venture Exchange (CDNX). :DTV (Digital TeleVision) Transmitting TV using digital signals. The major DTV standards are ATSC (North America), DVB (Europe) and ISDB (Japan). All three use MPEG-2 video compression and Dolby Digital audio compression. DVB and ISDB also include MPEG audio compression. .V) (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DWVSF), a Canadian-based company that has developed a secure, fast and efficient way of dispensing prepaid products. In the past three years, more than four million consumers have used the DataWave system to purchase prepaid phone cards, making DataWave a leader in the prepaid card market. Ultimately, Coinstar and DataWave hope to incorporate DataWave's unique wireless prepaid processing system into all Coinstar machines, enabling those machines to provide point-of-sale activated cards in any amount. DataWave is expanding into the prepaid cash card market with the assistance of Michigan National Bank Michigan National Bank was established on 31 December 1940 when Howard J Stoddard consolidatied six Michigan banks: First National Bank and Trust Company of Grand Rapids, First National Trust and Savings Bank of Port Huron, Lansing National Bank, Battle Creek's Security National , a major credit and debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. issuer. Michigan National Bank will use its vast resources to issue credit and debit cards, which can be used on the DataWave system. "This service is a logical extension of our coins-to-cash service," said Dan Gerrity, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Coinstar. "It's an ideal fit with our consumer base and it operates over our existing infrastructure." Prepaid cash cards work just like a debit or credit card. As a result, people can use the prepaid cards in the same places they would use a credit card. Prepaid cards are also an excellent way for consumers to purchase items over the Internet. Consumers who are uncomfortable transmitting their credit card number over the Web can instead enter the number from a prepaid card, which would have a low fixed dollar limit. Parents with teenaged children might also enjoy the benefits of a prepaid card. Instead of handing over mom or dad's card, parents can give their children a prepaid card, which again, would have a set dollar limit. This option allows parents to better monitor their child's spending. In addition, it minimizes the risks should the card be lost or stolen. Last year alone, the market for these cards exceeded $3 billion. DataWave expects the market for prepaid cards will exceed $8 billion within three years. "This partnership provides an opportunity for DataWave to quickly roll out our prepaid card technology to Coinstar's broad customer base," remarked Josh Emanuel, president and CEO of DataWave. "With prepaid cash cards, we hope to replicate the success we have experienced in the extremely large and growing phone card market." "By the end of this year, we hope to have launched a pilot project in one of our existing markets," concluded Gerrity. "During this phase, we do not anticipate any significant spending or capital expenditures." About Coinstar Inc. Recently ranked the country's eighteenth fastest growing technology company, Coinstar Inc. (Nasdaq:CSTR) and its subsidiaries, Meals.com and Coinstar International, use technology to deliver time and money saving services to consumers in their local supermarkets. Coinstar's 7,500 strong network of machines is currently available to 125 million consumers in 40 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). , as well as in Canada and the United Kingdom. Consumers can visit www.findcoinstar.com or call 800/928-CASH to find the nearest Coinstar(R) machine. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. Actual results could differ materially from the results identified or implied in any forward-looking statement discussed herein. Factors that could cause or contribute to such differences include, but are not limited to, the risks that are more fully described under the caption "Risk Factors" included in the most recent reports filed with the Securities and Exchange Commission by Coinstar Inc. |
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