Coinstar Raises Earnings Guidance for the First Quarter of 2001; Reiterates Full-Year Expectations.

Business Editors

BELLEVUE, Wash.--(BUSINESS WIRE)--April 9, 2001

Coinstar Inc. (Nasdaq:CSTR) today raised its guidance for the first quarter of 2001 and reiterated guidance for the entire year.

For the first quarter ended March 31, Coinstar expects financial results for its North American core business to be above the previously issued ranges. Previous guidance consisted of revenues of $25 to $26 million, a direct contribution margin of 51 to 52 percent; and EBITDA growth of 30 to 35 percent, compared to the first quarter of 2000.

While yet to finalize results for the period, revenues for the first quarter of 2001 are expected to be approximately $26.9 million. Comparable revenues (for machines installed in the same location for more than one year) increased 17 percent. EBITDA is also expected to surpass previously issued guidance.

For the full year, the company continues to expect its North American core business to generate revenues of $118 to $124 million and EBITDA of $30 to $34 million.

On Thursday, May 3, 2001, Coinstar will release first-quarter earnings before the opening of the market and will conduct a conference call to discuss results at 11 a.m. eastern. The call will be simulcast on the company's Web site at www.coinstar.com and will be available for one week following the live event.

Coinstar Inc. owns and operates the only nationwide network of supermarket-based machines that offer coin counting and other electronic services. Linked by a sophisticated interactive network, the company has more than 8,500 machines throughout North America and in the United Kingdom. Meals.com, the company's majority-owned subsidiary, is an infrastructure provider that helps supermarket retailers and packaged goods manufacturers communicate directly to consumers through the use of online and in-store technologies.

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. Forward looking statements in this news release include statements relating to Coinstar's financial performance during the first quarter of 2001 and during the 2001 fiscal year. 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 continued consolidation of Meals.com's losses, the ability to obtain new agreements with potential retail partners for the installation of Coinstar units, the successful deployment and operation of our coin processing network and customer utilization of our service. 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.