Coinstar Inc. Forms E-commerce Subsidiary and Acquires Key Assets of Two Web-based Businesses.

SEATTLE--(BUSINESS WIRE)--April 19, 1999--

Coinstar Inc. (Nasdaq:CSTR), a retail-based coin counting and electronic commerce company, today announced the formation of a wholly-owned subsidiary to implement the company's electronic commerce strategy.

Coinstar also announced the acquisitions of key software and web-based assets from Compucook Inc., a business of Level 3 Communications Inc. (Nasdaq:LVLT), and Meals.com, a business of NCH NuWorld Marketing.

Linking Internet Users with Supermarket Retailers

The new subsidiary will pilot and roll out Coinstar's new Coinstar Shopper(TM) product. Coinstar Shopper is an integrated package of convenience-oriented services designed to build stronger relationships between consumers and their supermarkets using both the Internet and Coinstar's in-store locations.

More than two thirds of American households already hold a frequent shopper card. The Coinstar Shopper system allows grocers to better communicate with these customers by integrating their frequent shopper programs with Coinstar Shopper's services. For instance, consumers will be able to visit their supermarket's web site, click on Coinstar's meal planning service, and then print their recipe at a Coinstar Shopper machine upon arriving at the store.

In addition to meal planning, the Coinstar Shopper product will integrate services such as personalized grocery discounts, product, travel and entertainment offers, and access to frequent shopper points balances. Further services will be added based on consumer demand.

Relevant Content that Drives Consumer Traffic

The Compucook (including Compucook.com) and Meals.com acquisitions will provide Coinstar with the content and Internet infrastructure to more rapidly deploy the Coinstar Shopper product. These strategic acquisitions give Coinstar a library of more than 10,000 recipes, as well as multiple Internet properties generating several hundred thousand visits per month. These web sites are currently being combined and enhanced.

By integrating these acquisitions into the Coinstar Shopper system, consumers will be able to plan a meal on the web or in the store, and then receive a customized shopping list, along with personalized product offers, upon arriving at the supermarket.

Leveraging Coinstar's 5,300 Store Network

"Our electronic commerce subsidiary will be in a position to leverage the capabilities of our 5,300 store network built for our retail-based coin counting service," said Jens Molbak, CEO of Coinstar Inc. "Our network systems have the capability to deliver services like personalized shopping lists and product offers to the more than 70 million consumers who pass our prime supermarket locations every week. The acquisition of these new Internet assets links consumers on the web with our in-store services, making for a more convenient shopping experience."

Coinstar's retail-based machines already communicate through a central network at the company's Bellevue, Washington headquarters. Leveraging these telecommunications links is a critical component of the company's electronic commerce strategy. In addition, Coinstar has a nationwide field service organization in place to service any new retail-based products the company will deploy.

Management of Coinstar's Web-based Business

Coinstar also announced the appointment of Dave Boerlin as the National Sales and Marketing Manager for its web-based business. Boerlin comes to Coinstar from Meals.com where he drove development of the Meals.com property and built strong relationships with advertisers.

"I am extremely pleased that Dave is bringing his Internet experience to Coinstar," said Ian Melanson, vice president of sales and marketing for Coinstar Inc. "Dave has an exceptional combination of web savvy, consumer marketing skills, and retail knowledge that will help us create real value for consumers, our supermarket partners, and advertisers."

"Coinstar is uniquely positioned to turn web traffic into store traffic," commented Dave Boerlin. "I look forward to developing a web-based business that can effectively target and build relationships with the 70 million consumers who shop at Coinstar's partner supermarkets each week. The combination of our web presence and the Coinstar Shopper delivery network provide a total solution for consumer marketing that is unprecedented."

The Coinstar Shopper platform was unveiled in late February at the Food Marketing Institute's MarkeTechnics trade show. The new service is scheduled to be pilot tested this year followed by a national roll out in 2000.

Coinstar Inc. and its subsidiaries provide consumers and retailers with value-added services that increase customer loyalty and retailer profitability. The Coinstar network currently delivers the company's self-service coin counting product to more than 5,300 leading supermarkets in 38 states. The company's new Coinstar Shopper product is designed to bridge the gap between the Internet and the store. Consumers can call 1-800-928-CASH, or visit http://www.coinstar.com for the location of the nearest Coinstar machine.

Photos can be downloaded from the Coinstar Website at: http://www.coinstar.com/news/photorel.html

This press release contains forward-looking statements 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.