Coinstar Expands Its E-Payment Leadership in the United Kingdom by Partnering with PayPoint

Coinstar E-Payment Services Limited, an affiliate of Coinstar, Inc. and PayPoint, the U.K.’s best known and most used over-the-counter payment solutions provider, have agreed to team up to make available a gift card program for PayPoint retailers at more than 17,000 outlets in the United Kingdom. The Coinstar Gift Card program consists of a display rack carrying many of the United Kingdom’s leading retailers from department store, clothing, book, music, experience, sporting and electronics brands. The program gives the PayPoint retailer an innovative, turnkey product to drive incremental foot traffic and store profits. In addition, it promotes a convenient way for consumers to buy gifts -- in the form of electronic stored value gift cards. Coinstar’s Gift Card program will be made available to selected PayPoint outlets via the PayPoint terminal and integrated retailer point-of-sale systems. "This is a significant step for Coinstar’s Gift Card program,” said Steve Verleye, senior vice president and general manager of E-pay at Coinstar, Inc. "By partnering with PayPoint, we build on our initial success in the United Kingdom, and broaden the reach of our innovative Gift Card program to many retailers across the country.” Mike Igoe, retail director of PayPoint explains, "Choosing to partner with Coinstar was a logical step for us. We are able to match our processing expertise with Coinstar’s proven record in delivering Gift Card programs in the U.S. and U.K.” The companies expect to roll-out to retail locations in the second half of 2007. About Coinstar, Inc. Coinstar, Inc. (NASDAQ:CSTR) is a multi-national company offering a range of 4th Wall(TM) solutions for the retailers’ front of store consisting of self-service coin counting, electronic payment solutions, entertainment services, money transfer and self-service DVD rental. The company’s products and services can be found at more than 60,000 retail locations, including supermarkets, drug stores, mass merchants, financial institutions, convenience stores and restaurants. About PayPoint PayPoint is the UK’s and Ireland’s leading cash and internet payments company, handling over £5 billion in 414 million payments annually for over 5,000 clients and merchants. The company operates with several significant payment streams: The PayPoint branded retail network numbers over 17,500 terminal outlets located in local shops (including Co-ops, Spar, Costcutter, NISA-Today’s, Londis and thousands of independents) in all parts of the UK and Ireland. Terminals handle cash bill payments, mobile phone top-ups, transport tickets, London Congestion Charges, BBC TV licences and a wide variety of other payment types for all of the leading utilities, telecoms suppliers and many consumer service companies. This network is used by consumers, free of charge, over 7 million times a week. The network has 97.3% population cover on a 1 mile urban or 5 miles rural measure; Additional multiple retailer connections into the electronic till systems (EPoS) of over 3,850 outlets including BP, Somerfield and Superdrug for mobile top ups and selected payments from the PayPoint range; The PayPoint ATM network has over 1850 ‘LINK’-branded machines across the UK, also typically in convenience stores. These machines levy a small convenience fee for each withdrawal; and PayPoint Internet Payment Services, trading as Metacharge and SECPay, provides secure credit and debit card payments for over 4,000 web merchants linking into all the major UK acquiring banks. PayPoint floated on the London Stock Exchange in September 2004 and was the Financial Times ‘New Company of the Year’. The company has a market capitalisation of over £450 million. In year ended March 2007, revenue was £157 million with profit before tax of £27 million. PayPoint has been awarded the Queen’s Award for Enterprise and is widely recognised for its leadership in prepayment systems, smart technology and consumer service. Certain statements in this press release are "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe,” "estimate,” "expect,” "intend,” "anticipate,” "goals,” variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. The forward-looking statements in this release include statements regarding the expected availability of the Coinstar Gift Card Program in PayPoint Retailer locations. Forward-looking statements are not guarantees of future performance and actual results may vary materially from the results expressed or implied in such statements. Differences may result from actions taken by Coinstar, Inc., as well as from risks and uncertainties beyond Coinstar, Inc.’s control. Such risks and uncertainties include, but are not limited to, the termination, non-renewal or renegotiation on materially adverse terms of our contracts with our significant retailers, payment of increased service fees to retailers, the ability to attract new retailers, penetrate new markets and distribution channels, cross-sell our products and services and react to changing consumer demands, the ability to achieve the strategic and financial objectives for our entry into or expansion of new businesses, the ability to adequately protect our intellectual property, and the application of substantial federal, state, local and foreign laws and regulations specific to our business. The foregoing list of risks and uncertainties is illustrative, but by no means exhaustive. For more information on factors that may affect future performance, please review "Risk Factors” described in Item 1A of Part I of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. These forward-looking statements reflect Coinstar, Inc.’s expectations as of the date of this release. Coinstar, Inc. undertakes no obligation to update the information provided herein.