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Redbox to Purchase NCR DVD Assets

Redbox Automated Retail announced that it will pay up to $100 million to purchase NCR’s DVD business assets, including its kiosks, certain retailer contracts and inventory.

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Unedited press release follows:

Redbox to Acquire the Assets of NCR’s Entertainment Line of Business

Companies Also Plan to Sign a Manufacturing and Services Agreement

OAKBROOK TERRACE, IL, Feb 06, 2012 — Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (NASDAQ: CSTR) today announced that Redbox has agreed to purchase assets of NCR Corporation’s (NYSE: NCR) entertainment line of business. The acquisition includes the purchase of the DVD kiosks, certain retailer contracts, and DVD inventory from NCR’s entertainment line of business. In connection with the asset purchase, Coinstar and NCR also will enter into a strategic supplier arrangement where Coinstar will purchase product and services from NCR.

Redbox will pay up to $100 million for the assets. Through the manufacturing and services agreement, Coinstar will procure from NCR hardware, software and services that will yield $25 million in margin for NCR over five years.

“We are very pleased to enter into this agreement with NCR,” said Scott Di Valerio, chief financial officer of Coinstar, Inc. and interim president of Redbox. “As the global self-service solutions leader, NCR has strong technology, manufacturing and servicing capabilities, and we look forward to leveraging their expertise as Coinstar continues to grow its core automated retail businesses and expands its offerings.”

“Through this agreement with Redbox, NCR will be better positioned to focus on expanding our business in our targeted industries,” said John Bruno, executive vice president and chief technology officer, NCR. “Additionally, this transaction affords us the opportunity to develop a long-term strategic relationship with Coinstar and partner on delivering new and innovative solutions to the market.”

The transaction is subject to regulatory approval and is expected to close in the third quarter of 2012.

About Redbox
Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (NASDAQ: CSTR), offers new-release DVD, Blu-ray Disc(R) and video game rentals through its network of conveniently located, self-service kiosks. Redbox has rented more than 1.5 billion discs and is available at more than 35,400 kiosks across over 29,000 locations nationwide, including select McDonald’s restaurants, leading grocery, drug and convenience stores, select Walmart locations and Walgreens locations in select markets. For more information, visit

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(R) self-service DVD rental and Coinstar(R) self-service coin-counting brands. The company has approximately 35,400 DVD kiosks and 20,200 coin-counting kiosks in supermarkets, drug stores, mass merchants, financial institutions, convenience stores, and restaurants. For more information, visit