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Redbox Closes NCR DVD Kiosk Deal

Coinstar announced that its Redbox Automated Retail subsidiary has completed its acquisition of NCR’s self-service entertainment DVD kiosk business.

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Unedited press release follows:

Coinstar, Inc. Announces Closing of Redbox Transaction to Purchase Assets of NCR’s Entertainment Line of Business

BELLEVUE, Wash., June 25, 2012 — Coinstar, Inc. (Nasdaq: CSTR) today announced that Redbox Automated Retail, LLC, its wholly owned subsidiary, had completed the acquisition of certain assets of NCR Corporation’s (NYSE: NCR) self-service entertainment DVD kiosk business, including DVD kiosks, DVD inventory, intellectual property, and certain retailer contracts.

Under the terms of the asset purchase agreement, Redbox paid NCR $100 million and assumed certain liabilities of NCR related to the purchased assets. In connection with the asset purchase, Coinstar and NCR have entered into a strategic supplier arrangement whereby Coinstar, Redbox or an affiliate will purchase products and services from NCR that will yield $25 million in margin for NCR over five years.

“With the closing of the NCR transaction, we have strengthened our ability to bring the value and convenience of Redbox entertainment to new retail partners and their customers,” said J. Scott Di Valerio, chief financial officer of Coinstar, Inc. “While we expect to incur losses during the initial period, as we swap out the acquired kiosks for new Redbox kiosks, we expect the economics to improve and become accretive sometime in 2013.”

Coinstar provided an initial view of the expected impact of the asset purchase on certain financial measures and estimates the transaction will for the full year 2012:

• Decrease diluted earnings per share from continuing operations between $0.40 and $0.50 per share; and
• Increase capital expenditures between $40 million and $45 million.

The view provided by Coinstar is specifically limited to the expected impact of the NCR asset purchase on these select financial measures and is not intended to update previously issued guidance.

Coinstar plans to provide additional information relating to the expected impact of the transaction, including a breakdown of core and non-core components, when it reports second quarter 2012 financial results and updates guidance in July 2012.

About Coinstar, Inc.
Coinstar, Inc. (Nasdaq: CSTR) is a leading provider of automated retail solutions offering convenient services that make life easier for consumers and drive incremental traffic and revenue for retailers. The company’s core automated retail businesses include the well-known Redbox® self-service DVD and video game rental and Coinstar® self-service coin-counting brands. The company has approximately 36,800 Redbox DVD kiosks and 20,200 coin-counting kiosks in supermarkets, drug stores, mass merchants, financial institutions, convenience stores, and restaurants. Redbox also offers DVD rentals through additional kiosks as the result of an acquisition agreement with NCR Corporation that closed on June 22, 2012. For more information, visit

About Redbox
Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (Nasdaq: CSTR), offers new-release DVD, Blu-ray Disc™ and video game rentals through its network of conveniently located, self-service kiosks. Redbox has rented more than 2 billion discs and is available at more than 36,800 Redbox kiosks across over 30,000 locations nationwide, including select McDonald’s restaurants, leading grocery, drug and convenience stores, select Walmart locations and Walgreens locations in select markets. Redbox also offers DVD rentals through additional kiosks as the result of an acquisition agreement with NCR Corporation that closed on June 22, 2012. For more information, visit