Coinstar Sells E-Payment Services Business to InComm

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May 26, 2010
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Coinstar Sells E-Payment Services Business to InComm

ATLANTA and BELLEVUE, Wash., May 26 -- InComm and Coinstar, Inc. (NASDAQ:CSTR) today announced that InComm has purchased Coinstar's E-Payment services business, which includes operations in the United States and the United Kingdom. The aggregate purchase price was $40 million, which is subject to a post-closing net working capital adjustment.

With the transaction, InComm has acquired a comprehensive prepaid product portfolio including approximately 400 individual prepaid card products from more than 65 unique issuers spanning various prepaid segments, including wireless, long distance telecom, branded retail gift, financial services, and digital entertainment.

"We are pleased to have found a great home for our E-Payment business with InComm, a prepaid industry leader.  Our broad product portfolio and targeted distribution combined with InComm's solution will provide retailers an exceptional prepaid offering," said Paul Davis, chief executive officer of Coinstar, Inc.  "Coinstar will continue to focus on our core strengths in automated retail to serve our consumers, retailers and shareholders."

"This acquisition will expand our retail opportunities, including broadening distribution in convenience stores and will give more consumers easy access to the flexibility of prepaid products," said Brooks Smith, chief executive officer of InComm.  "The E-Pay team, including managers and employees, will be a great addition to InComm's team and we look forward to their contributions to the future growth of our business."

The transaction closed May 25, 2010.  In addition, Coinstar filed a Current Report on Form 8-K that contains certain information regarding the transaction.

  Raymond James & Associates, Inc. acted as Coinstar's financial advisor.

  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 its retailers. The company's core automated retail businesses are self-service coin counting and self-service DVD rental. Coinstar also offers money transfer services. The company's services can be found at more than 80,000 points of presence including supermarkets, drug stores, mass merchants, financial institutions, convenience stores, restaurants, and money transfer agents. For more information, visit http://www.coinstar.com.

About InComm

InComm is the industry leading marketer, distributor and technology innovator of stored-value gift and prepaid products using its state-of-the-art point-of-sale transaction technology and payment solutions to revolutionize retail product sales and customer experiences. With a dedication partners have grown to trust over the past 17 years, InComm provides a turnkey solution by leveraging proven retail expertise, patented technology, and best practices in marketing with creative design, optimal placement, promotion and messaging at retail. Merchandising, card production, supply chain logistics, and full category and sales management complete the award-winning suite of services offered. InComm is the nation's largest provider of gift cards, prepaid wireless products, reloadable debit cards, digital music downloads, content, games, software and bill payment solutions with nearly $10 billion in retail sales transactions processed in 2009. InComm partners with consumer brand leaders around the world to provide more than 200,000 retail locations the products and services their customers demand. Since 1992, InComm's patented technologies have made the buying process easier for consumers while streamlining the selling process for product and retail partners. To learn more about InComm, visit http://www.incomm.com or call 1.800.352.3084. InComm is headquartered in Atlanta, GA with offices in Japan, Canada, the United Kingdom, Puerto Rico, Colorado, Texas, Florida, New Jersey, Oregon, Arkansas, Alabama and Minnesota.

Source: Coinstar, Inc.
   

CONTACT:  Marci Maule of Coinstar, Inc., +1-425-943-8277,
mmaule@coinstar.com; or Jenn Boutwell of InComm, +1-770-882-2240,
jboutwell@incomm.com

Web Site:  http://www.coinstar.com/
http://www.incomm.com/

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