Coinstar Installs 10,000th Machine; Supermarkets Continue to Add Service to Satisfy Growing Customer Demand.

Business Editors

Coinstar Inc. (Nasdaq:CSTR), the provider of supermarket-based coin-counting services, has reached a significant milestone, installing its ten thousandth machine in Lakeland, Florida.

Since installing its first four machines in the San Francisco Bay area in 1992, Coinstar has pursued an aggressive, nationwide rollout, as consumers and supermarkets recognized the value of Coinstar's coin-counting service. Today, Coinstar machines are located in 47 states and the District of Columbia, as well as in Canada and the United Kingdom.

At the heart of Coinstar's success is its ability to satisfy an unmet need: an estimated $10.5 billion in change sits unused in American homes at any given time. Coinstar provides a quick and convenient way for consumers to transform that into spendable currency.

Coinstar's coin-counting service is now a $130 million business, with an enviable record of consistent, strong growth. Since its inception, Coinstar has processed more than $4.5 billion worth of coins, turning change into spendable currency. Today, Coinstar processes and reintroduces into circulation more coins than are produced by the U.S. Mint.

"With all its success, our core, coin-counting operation remains an exciting, profitable, growth business, with tremendous untapped potential," said Dave Cole, chief executive officer of Coinstar. Only 15 percent of households in a Coinstar market have tried the service, while more than three-quarters of U.S. households accumulate change. "And some 80 percent of those who try Coinstar become repeat customers, creating a recurring revenue stream."

New Backlit Design

Along with its ten thousandth machine installation, Coinstar introduced its first major design change since the company's founding. The new backlit units, which provide higher visibility in the supermarket, have produced exceptional consumer acceptance and average lift of 10 percent during testing over the past two years. Including new installations and the retrofit of existing units, the company expects to have more than 1,000 backlit units in the field by the end of 2002. Supermarkets in six cities--Atlanta, Austin, Houston, Las Vegas, San Diego, and Washington, D.C.--are among the first to take part in the rollout of the new backlit machine design.

"The new backlit machine, with its ability to integrate new equipment into the right side of the machine, can facilitate the rollout of new products and services," said Cole. "We envision the Coinstar machine as a convenient touch point for a range of consumer services and are evaluating opportunities in bill payment, person-to-person payments, and the ability to offer and top off a wide variety of prepaid instruments."

About Coinstar Inc.

Coinstar Inc. owns and operates the only nationwide network of supermarket-based machines that offer coin counting and other electronic services. The company has 10,000 machines linked by a sophisticated interactive network throughout the United States, as well as in Canada and the United Kingdom. Consumers can visit www.findcoinstar.com or call 1-800-928-CASH to find the nearest Coinstar machine.

This press release contains forward-looking statements relating to Coinstar's anticipated growth and future operating results 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. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause or contribute to such varying results include, but are not limited to, the ability to bring new and repeat customers to Coinstar machines, the ability to obtain new agreements with potential retail partners for the installation of Coinstar units in North America and the United Kingdom, the successful deployment and operation of our coin processing network, market acceptance of potential new products and services, and additional potential competitors. These and other risks 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. Coinstar undertakes no duty or obligation to update the information provided herein.