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Coinstar, Inc. Announces 2012 Third Quarter Results

             Coinstar, Inc. Announces 2012 Third Quarter Results

Consolidated Revenue Growth of 16% and Solid Bottom Line Performance; Redbox
Signs 28-Day Delay Content Agreement with Warner Bros.

PR Newswire

BELLEVUE, Wash., Oct. 25, 2012

BELLEVUE, Wash., Oct. 25, 2012 /PRNewswire/ --Coinstar, Inc. (Nasdaq: CSTR)
today reported financial results for the third quarter and nine months ended
September 30, 2012.

"In the third quarter, Coinstar delivered 16% year over year revenue growth
and solid bottom line results," said Paul Davis, chief executive officer of
Coinstar, Inc. "Redbox revenue increased 18% despite temporary headwinds from
the new release schedule and Olympics that negatively impacted rentals. We are
optimistic regarding the future of Redbox and are focused on key Redbox growth
initiatives, including extending the footprint in the U.S. and expanding into
Canada, as well as our digital offering with Redbox Instant™ by Verizon. We
continue to find new ways to add value at our kiosks to drive increased
consumer loyalty and transactions, including Redbox Tickets™, a unique concept
recently launched in Philadelphia that enables consumers to purchase tickets
to a variety of entertainment events for a fee of only $1.00 per ticket."

Davis continued, "We believe that the agreement with Warner Bros. we announced
today demonstrates our ongoing commitment to offer new release content to our
consumers and underscores the importance of the physical DVD in the home
entertainment ecosystem. We are confident that the actions we are taking will
serve consumers and shareholders well into the future."

Coinstar's 2012 third quarter and nine months financial highlights included:

                                              2012             2012
                                              Third Quarter   Nine Months
• Consolidated revenue                    $ 537.6  million $ 1,638.0 million
• Income from continuing operations       $ 36.8   million $ 127.3   million
• Core adjusted EBITDA from continuing    $ 117.8  million $ 368.2   million
operations* (See Appendix A)
• Diluted earnings per share from         $ 1.14           $ 3.90
continuing operations
• Core diluted earnings per share* (See   $ 1.26           $ 3.88
Appendix A)
• Net cash flows from operating           $ 117.5  million $ 311.7   million
activities from continuing operations
• Free cash flow from continuing          $ 61.0   million $ 178.5   million
operations* (See Appendix A)

"The third quarter posed a greater challenge than we anticipated as the
Olympics' impact served to drive lower physical, digital and theatrical
viewership across the board," said J.ScottDiValerio, chief financial
officer of Coinstar, Inc. "Even in a challenging quarter, we continued to
focus on day-to-day execution and driving strong margins and earnings, while
investing in our business, generating free cash flow, and executing a
$59million buy back of our stock."

DiValerio added, "When we issued guidance for the quarter we recognized that
several factors would pressure rentals. However, the new release schedule,
including fewer titles and several weeks with little new content, and
record-setting Olympics viewership took a large number of movie viewers out of
the home entertainment market. The compounding effect of these factors was
greater than we expected. We expect to improve performance in the fourth
quarter and to finish the year in a strong position moving into 2013. We
remain confident in the future of Coinstar and in our ability to deliver
long-term value to our shareholders."

*Refer to Appendix A for a discussion of non-GAAP financial measures,
including the exclusion of certain non-core items.

Revenue for the third quarter of 2012 increased 15.5% to $537.6 million
compared with the third quarter of 2011, driven primarily by revenue growth in
the Redbox segment of 17.9% to $459.5 million, attributable to the price
increase implemented at the end of October 2011, same store sales growth and
new kiosk installations. Coin segment revenue increased 2.8% to $77.6 million,
reflecting growth in the installed kiosk base and an increase in the average
transaction size.

Operating income for the third quarter of 2012 was $66.9 million, which
resulted in an operating margin of 12.4%, compared with operating income of
$65.6 million and an operating margin of 14.1% in the third quarter of 2011.

Income from continuing operations for the third quarter of 2012 was $36.8
million, or diluted earnings per share from continuing operations of $1.14,
compared with $37.1 million or $1.18 per share in the third quarter of 2011.
Core diluted earnings per share from continuing operations for the third
quarter of 2012 was $1.26, excluding non-core adjustments of $0.12 per share,
compared with $1.20 per diluted share, excluding non-core adjustments of $0.02
per share in the third quarter of 2011.

Coinstar's third quarter results include a negative impact of $8.7 million, or
$0.16 per diluted share, on core diluted earnings per share from continuing
operations attributable to the operating results of the kiosks acquired as
part of the NCR asset acquisition.

Net cash flows from operating activities from continuing operations in the
third quarter of 2012 was $117.5million, compared with $89.8 million in the
third quarter of 2011. Cash paid for capital expenditures for continuing
operations for the third quarter of 2012 was $56.5 million, compared with
$46.9 million in the third quarter of 2011. Free cash flow from continuing
operations for the third quarter of 2012 was $61.0 million, compared with
$42.9 million in the third quarter of 2011.

During the third quarter of 2012, the company repurchased its stock for
approximately $59.0 million representing 1.16 million shares of common stock
at an average price of $51.07 per share through a combination of the 10b5-1
plan implemented in August and other open market purchases. On September 30,
2012, there was $209.6 million remaining under the current Board authorization
for stock repurchases.

Guidance

Guidance for the 2012 full year and fourth quarter reflects Coinstar
management's expectations related to:

  oA negative impact of approximately $9.7million, or $0.19 per diluted
    share, on core diluted earnings per share from continuing operations in
    the fourth quarter;
  oThe pace of return of Redbox customers after lack of new content in the
    third quarter;
  oThe rate of replacing between 400 and 500 NCR kiosks and removing between
    700 and 800 NCR kiosks in the fourth quarter; and
  oThe timing of the new release schedule, with more titles available to
    Redbox in the back end of the fourth quarter.

For the 2012 full year, Coinstar management expects:

  oConsolidated revenue between $2.190 billion and $2.240 billion;
  oCore adjusted EBITDA from continuing operations between $455 million and
    $470 million;
  oCore diluted EPS from continuing operations between $4.50 and $4.65 on a
    fully diluted basis; and
  oFree cash flow from continuing operations between $185 million and $210
    million.

For the 2012 fourth quarter, Coinstar management expects:

  oConsolidated revenue between $552 million and $602 million;
  oCore adjusted EBITDA from continuing operations between $87 million and
    $102 million; and
  oCore diluted EPS from continuing operations between $0.62 and $0.77 on a
    fully diluted basis.

Additional Information

Coinstar has provided additional comments on guidance in prepared remarks that
also review the company's 2012 third quarter operating and financial results.
The prepared remarks and supplemental slides are posted on the Investor
Relations section of the corporate website at www.coinstarinc.com along with
this press release. The 2012 third quarter Segment Supplement, which provides
historical data in Excel format and replaces the Investor Update, is also
posted on the website. 

Conference Call

Paul Davis and J. Scott Di Valerio will host a conference call today at 2:00
p.m. PDT (5:00 p.m. EDT) to answer questions related to the company's
performance and guidance. The conference call will be webcast live and
archived on the Investor Relations section of Coinstar's website at
www.coinstarinc.com. A recording of the call will be available approximately
two hours after the call ends through November 9, 2012, at 1-888-843-7419 or
1-630-652-3042, passcode 33442426.

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 42,400 Redbox DVD kiosks and 20,300 coin-counting
kiosks in supermarkets, drug stores, mass merchants, financial institutions,
convenience stores, and restaurants. Redbox also offers DVD rentals through
additional kiosks acquired from NCR Corporation in June 2012. For more
information, visit www.coinstarinc.com.

Safe Harbor for Forward-Looking Statements 

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 Coinstar, Inc.'s anticipated growth and future operating
results, including 2012 fourth quarter and 2012 full year results.
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. and
Redbox, as well as from risks and uncertainties beyond Coinstar, Inc.'s
control. Such risks and uncertainties include, but are not limited to,

  ocompetition from other digital entertainment providers,
  othe ability to achieve the strategic and financial objectives for our
    entry into a new business,
  oour limited ability to direct the management or policies of the new joint
    venture with Verizon Communications,
  ofailure to receive the expected benefits of the NCR relationship,
  othe termination, non-renewal or renegotiation on materially adverse terms
    of our contracts with our significant retailers and suppliers,
  opayment of increased fees to retailers, suppliers and other third-party
    providers, including financial service providers,
  othe inability to receive delivery of DVDs on the date of their initial
    release to the general public, or shortly thereafter, or in sufficient
    quantity, for home entertainment viewing,
  onoteholders electing to convert our convertible notes,
  othe effective management of our content library,
  othe ability to attract new retailers, penetrate new markets and
    distribution channels and react to changing consumer demands,
  othe ability to achieve the strategic and financial objectives for our
    entry into or expansion of new businesses,
  othe ability to adequately protect our intellectual property, and
  othe 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 our most recent Annual
Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q 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.

(Financial Statements Follow)

Appendix A

Use of Non-GAAP Financial Measures

Non-GAAP Financial Measures

Non-GAAP measures may be provided as a complement to results provided in
accordance with United States generally accepted accounting principles
("GAAP").

We use the following non-GAAP financial measures to evaluate our financial
results:

  oCore adjusted EBITDA from continuing operations;
  oCore diluted earnings per share ("EPS") from continuing operations; and
  oFree cash flow from continuing operations.

These measures, the definitions of which are presented below, are non-GAAP
because they exclude certain amounts which are included in the most directly
comparable measure calculated and presented in accordance with GAAP. Our
non-GAAP financial measures are not meant to be considered in isolation or as
a substitute for our GAAP financial measures and may not be comparable with
similarly titled measures of other companies.

Core and Non-Core Results

We distinguish our core activities, those associated with our primary
operations, from non-core activities. Non-core activities are primarily
nonrecurring events or events we do not control. Our non-core adjustments
include i) deal fees primarily related to the NCR asset acquisition, ii)
income or loss from equity method investments, which represents our share of
income or loss from entities we do not consolidate or control, and iii) a gain
on the grant of a license to use certain Redbox trademarks to Redbox Instant™
by Verizon ("Non-Core Adjustments"). We believe investors should consider our
core results because they are more indicative of our ongoing performance and
trends and are more consistent with how management evaluates our operational
results and trends.

Core Adjusted EBITDA from Continuing Operations

Our non-GAAP financial measure core adjusted EBITDA from continuing operations
is defined as earnings before depreciation, amortization and other; interest
expense, net; income taxes; share-based payments expense; and Non-Core
Adjustments.

A reconciliation of core adjusted EBITDA from continuing operations to income
from continuing operations, the most comparable GAAP financial measure, is
presented in the following table:

                                    Three Months Ended      Nine Months Ended
                                    September 30,           September 30,
Dollars in thousands                2012         2011      2012       2011
Income from continuing           $  36,774     $  37,126  $ 127,345  $ 83,429
operations
  Depreciation, amortization and    52,489      38,839    136,909    108,973
  other
  Interest expense, net             3,892       5,416     11,033     18,878
  Income taxes                      20,161      22,544    80,608     51,915
  Share-based payments expense      (1,586)      869       13,144     9,362
  (benefit)^(1)
      Adjusted EBITDA from          111,730     104,794   369,039    272,557
      continuing operations
Non-core adjustments:
  Deal fees                         20          265       3,235      481
  Loss from equity method           6,021       272       15,406     880
  investments
  Gain on formation of Redbox       -           -         (19,500)   -
  Instant™ by Verizon
      Core Adjusted EBITDA from  $  117,771    $  105,331 $ 368,180  $ 273,918
      continuing operations
(1) Includes both non-cash share-based compensation for executives,
non-employee directors and employees as well as share-based payments for
content arrangements.

Core Diluted EPS from Continuing Operations

Our non-GAAP financial measure core diluted EPS from continuing operations is
defined as diluted earnings per share from continuing operations excluding
Non-Core Adjustments, net of applicable taxes.

A reconciliation of core diluted EPS from continuing operations to diluted EPS
from continuing operations, the most comparable GAAP financial measure, is
presented in the following table:

                                        Three Months Ended   Nine Months Ended
                                        September 30,        September 30,
                                        2012        2011    2012        2011
Diluted EPS from continuing           $ 1.14     $   1.18  $ 3.90     $  2.61
operations
Non-core adjustments, net of tax:^(1)
  Deal fees                             -          0.01    0.06        0.01
  Loss from equity method investments   0.12       0.01    0.29        0.02
  Gain on formation of Redbox           -          -       (0.37)      -
  Instant™ by Verizon
Core diluted EPS from continuing      $ 1.26     $   1.20  $ 3.88     $  2.64
operations
(1) Non-Core Adjustments are presented after-tax using the applicable
effective tax rate for the respective periods.

Free Cash Flow from Continuing Operations

Our non-GAAP financial measure free cash flow from continuing operations is
defined as net cash provided by operating activities from continuing
operations after capital expenditures. We believe free cash flow from
continuing operations is an important non-GAAP measure as it provides
additional information to users of the financial statements regarding our
ability to service, incur or pay down indebtedness and repurchase our common
stock. The table below provides a reconciliation of net cash provided by
operating activities from continuing operations, the most comparable GAAP
financial measure, to free cash flow from continuing operations:

                                   Three Months Ended    Nine Months Ended
                                   September 30,         September 30,
Dollars in thousands               2012       2011       2012        2011
Net cash provided by operating   $ 117,473  $ 89,779   $ 311,694   $ 261,639
activities
Purchase of property and           (56,480)   (46,902)   (133,181)   (134,779)
equipment
Free cash flow from continuing   $ 60,993   $ 42,877   $ 178,513   $ 126,860
operations



COINSTAR, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share data)

(unaudited)
                                   Three Months Ended    Nine Months Ended
                                   September 30,         September 30,
                                   2012       2011       2012        2011
Revenue                          $ 537,562  $ 465,617  $ 1,637,961 $ 1,324,917
Expenses:
 Direct operating                  351,541    310,101    1,098,750   917,687
 Marketing                         7,513      7,723      20,080      20,697
 Research and development          3,140      3,239      10,684      7,539
 General and administrative        56,010     40,076     156,609     114,795
 Depreciation and other            50,470     38,154     133,579     106,918
 Amortization of intangible        2,019      685        3,330       2,055
 assets
Total expenses                     470,693    399,978    1,423,032   1,169,691
Operating income                   66,869     65,639     214,929     155,226
Other income (expense):
 Income (loss) from equity         (6,021)    (272)      4,094       (880)
 method investments, net
 Interest expense, net             (3,892)    (5,416)    (11,033)    (18,878)
 Other, net                        (21)       (281)      (37)        (124)
Total other income (expense)       (9,934)    (5,969)    (6,976)     (19,882)
Income from continuing             56,935     59,670     207,953     135,344
operations before income taxes
Income tax expense                 (20,161)   (22,544)   (80,608)    (51,915)
Income from continuing             36,774     37,126     127,345     83,429
operations
Loss from discontinued             -          -          -           (11,068)
operations, net of tax
Net income                         36,774     37,126     127,345     72,361
Other comprehensive income,
before tax:
 Foreign currency translation      1,477      (832)      1,342       (122)
 adjustment
 Reclassification of interest
 rate hedges to interest           -          -          -           896
 expense
 Loss on short-term investments    -          -          -           (20)
 Income tax expense related to
 items of other comprehensive      -          -          -           (342)
 income
Other comprehensive income         1,477      (832)      1,342       412
(loss), net of tax
Comprehensive income             $ 38,251   $ 36,294   $ 128,687   $ 72,773
Basic earnings (loss) per
share:
 Continuing operations           $ 1.21     $ 1.23     $ 4.16      $ 2.72
 Discontinued operations           -          -          -           (0.36)
Basic earnings per share         $ 1.21     $ 1.23     $ 4.16      $ 2.36
Diluted earnings (loss) per
share:
 Continuing operations           $ 1.14     $ 1.18     $ 3.90      $ 2.61
 Discontinued operations           -          -          -           (0.35)
Diluted earnings per share       $ 1.14     $ 1.18     $ 3.90      $ 2.26
Weighted average shares used in    30,454     30,224     30,605      30,608
basic per share calculations
Weighted average shares used in    32,238     31,596     32,684      31,957
diluted per share calculations



COINSTAR, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)
                                                  September 30,   December 31,
                                                  2012            2011
 Assets
 Current Assets:
  Cash and cash equivalents                     $ 308,458       $ 341,855
  Accounts receivable, net of allowances of       44,263          41,246
  $1,373 and $1,586
  Content library                                 140,315         142,386
  Deferred income taxes                           16,621          84,228
  Prepaid expenses and other current assets       37,152          25,274
          Total current assets                    546,809         634,989
 Property and equipment, net                      525,523         499,178
 Notes receivable                                 26,289          24,374
 Deferred income taxes                            738             647
 Goodwill and other intangible assets             360,452         274,583
 Other long-term assets                           58,743          17,066
 Total assets                                   $ 1,518,554     $ 1,450,837
 Liabilities and Stockholders' Equity
 Current Liabilities:
  Accounts payable                              $ 144,064       $ 175,550
  Accrued payable to retailers                    133,132         127,450
  Other accrued liabilities                       157,063         148,996
  Current portion of long-term debt               14,792          13,986
  Current portion of capital lease obligations    10,473          12,057
          Total current liabilities               459,524         478,039
 Long-term debt and other long-term liabilities   357,839         359,288
 Capital lease obligations                        12,776          11,768
 Deferred tax liabilities                         86,088          87,840
 Total liabilities                                916,227         936,935
 Commitments and contingencies                    -               -
 Stockholders' Equity:
  Preferred stock, $0.001 par value - 5,000,000
  shares authorized; no shares
          issued or outstanding                   -               -
  Common stock, $0.001 par value - 60,000,000
  authorized;
          35,781,764 and 35,251,932 shares
          issued;
          30,184,177 and 30,879,778 shares        504,057         481,249
          outstanding
  Treasury stock                                  (216,495)       (153,425)
  Retained earnings                               316,094         188,749
  Accumulated other comprehensive loss            (1,329)         (2,671)
          Total stockholders' equity              602,327         513,902
  Total liabilities and stockholders' equity    $ 1,518,554     $ 1,450,837



COINSTAR, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)
                                  Three Months Ended     Nine Months Ended
                                  September 30,          September 30,
                                  2012       2011        2012        2011
Operating Activities:
Net income                      $ 36,774   $ 37,126    $ 127,345   $ 72,361
Adjustments to reconcile net
income to net cash flows from
   operating activities
   from continuing
   operations:
   Depreciation and other         50,470     38,154      133,579     106,918
   Amortization of intangible
   assets and deferred            2,551      1,581       4,925       3,966
   financing fees
   Share-based payments expense   (1,586)    869         13,144      9,362
   (benefit)
   Excess tax benefits on         (1,936)    (117)       (5,673)     (2,431)
   share-based payments
   Deferred income taxes          16,566     20,966      73,190      46,915
   Loss from discontinued         -          -           -           11,068
   operations, net of tax
   (Income) loss from equity      6,021      272         (4,094)     880
   method investments, net
   Non-cash interest on           1,789      1,648       5,270       4,857
   convertible debt
   Other                          (794)      (599)       (4,107)     (730)
Cash flows from changes in
operating assets and
liabilities from
   continuing operations          7,618      (10,121)    (31,885)    8,473
   Net cash flows from
   operating activities from      117,473    89,779      311,694     261,639
   continuing operations
Investing Activities:
Purchases of property and         (56,480)   (46,902)    (133,181)   (134,779)
equipment
Proceeds from sale of property    150        201         819         552
and equipment
Proceeds from sale of             -          -           -           12,221
businesses, net
Acquisition of NCR DVD kiosk      -          -           (100,000)   -
business
Equity investments                (11,377)   -           (39,727)    (2,320)
   Net cash flows from
   investing activities from      (67,707)   (46,701)    (272,089)   (124,326)
   continuing operations
Financing Activities:
Principal payments on capital
lease obligations and other       (4,008)    (5,072)     (13,202)    (22,145)
debt
Borrowing from term loan          -          175,000     -           175,000
Principal payments on term loan   (3,293)    (2,187)     (7,668)     (2,187)
Net payments on credit facility   -          (125,000)   -           (150,000)
Financing costs associated with   -          (4,196)     -           (4,196)
credit facility
Excess tax benefits related to    1,936      117         5,673       2,431
share-based payments
Repurchases of common stock and   (59,012)   -           (63,070)    (63,349)
ASR program
Proceeds from exercise of stock   53         842         4,034       2,182
options, net
   Net cash flows from
   financing activities from      (64,324)   39,504      (74,233)    (62,264)
   continuing operations
Effect of exchange rate changes   1,381      (810)       1,231       (165)
on cash
Increase (decrease) in cash and
cash equivalents from             (13,177)   81,772      (33,397)    74,884
continuing operations
Cash flows from discontinued
operations:
Operating cash flows              -          -           -           9,678
Investing cash flows              -          -           -           (12,678)
Financing cash flows              -          -           -           -
   Net cash flows from            -          -           -           (3,000)
   discontinued operations
Increase (decrease) in cash and   (13,177)   81,772      (33,397)    71,884
cash equivalents
Cash and cash equivalents:
Beginning of period               321,635    173,528     341,855     183,416
End of period                   $ 308,458  $ 255,300   $ 308,458   $ 255,300

Coinstar, Inc.
Business Segment Information
(in thousands)
(unaudited)

As a complement to our Consolidated Statements of Comprehensive Income, we are
providing the following information related to our business segments, which
includes segment operating income (loss). Management, including our chief
executive officer, evaluates the performances of our business segments
primarily on segment revenue and segment operating income from continuing
operations before depreciation, amortization and other, and certain
share-based payments ("segment operating income"). We utilize segment revenue
and segment operating income because we believe they provide useful
information for effectively allocating resources among business segments,
evaluating the health of our business segments based on metrics that
management can actively influence, and gauging our investments and our ability
to service, incur or pay down debt.

                         Three Months Ended           Nine Months Ended
                         September 30,                September 30,
Dollars in thousands     2012            2011         2012          2011
Revenue:
 Redbox              $   459,538     $   389,801   $  1,420,448  $  1,116,007
 Coin                    77,616          75,506       216,297       207,934
 New Ventures            408             310          1,216         976
Consolidated revenue $   537,562     $   465,617   $  1,637,961  $  1,324,917
Segment operating income reconciled to GAAP operating income
                         Three Months Ended           Nine Months Ended
                         September 30,                September 30,
Dollars in thousands     2012           2011         2012          2011
Segment operating
income (loss)^(1)
 Redbox^(2)          $   101,203     $   83,499    $  306,741    $  208,337
 Coin                    27,915        27,879       72,961        75,288
 New Ventures            (6,546)        (4,425)      (18,315)      (11,747)
  Subtotal               122,572       106,953      361,387       271,878
Depreciation,
amortization and
other:
 Redbox                  41,478        30,910       109,256       85,368
 Coin                    10,968        7,924        27,588        22,746
 New Ventures            43            5            65            859
  Total
  depreciation,          52,489        38,839       136,909       108,973
  amortization and
  other
 Share-based
 compensation            3,214         2,475        9,549         7,679
 expense
Operating income
(loss):
 Redbox                  59,725        52,589       197,485       122,969
 Coin                    16,947        19,955       45,373        52,542
 New Ventures            (6,589)        (4,430)      (18,380)      (12,606)
 Share-based
 compensation            (3,214)        (2,475)      (9,549)       (7,679)
 expense
  Total operating    $   66,869      $   65,639    $  214,929    $  155,226
  income
  (1) Operating income (loss) before depreciation, amortization and other, and
  share-based compensation expense.
  (2) Share-based payments expense related to our content arrangements have
  been allocated to our Redbox segment.



SOURCE Coinstar, Inc.

Website: http://www.coinstarinc.com
Contact: Marci Maule, Director of Public Relations, 425-943-8277,
marci.maule@coinstar.com, or Financial Analysts and Investors, Rosemary
Moothart, Director of Investor Relations, 425-943-8140,
rosemary.moothart@coinstar.com
 
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