Coinstar Sends Letter Urging Stockholders to Re-Elect Incumbent Directors

    Demonstrates Independent Experts' Support for Coinstar's Execution
                    and Stockholder Value Creation

   Troubled by Shamrock's Record of Financial Losses and Stock Price
     Declines at Companies Where Shamrock Has Board Representation

BELLEVUE, Wash.--(BUSINESS WIRE)--May 14, 2008--Coinstar, Inc. (NASDAQ: CSTR) today announced that it is mailing a letter to Coinstar stockholders from David W. Cole, Chief Executive Officer, and Keith D. Grinstein, Chairman of the Board, in connection with the Company's 2008 Annual Meeting of Stockholders to be held on June 3, 2008. Coinstar's Board unanimously recommends stockholders vote FOR Coinstar's independent and qualified nominees -- Deborah Bevier, David Eskenazy and Robert Sznewajs -- by signing, dating and returning the WHITE proxy card today.

    May 14, 2008

    Dear Fellow Stockholder:

Your vote at Coinstar's upcoming Annual Meeting of Stockholders is important to the future of your investment in the Company.

Your Board of Directors and management team are successfully executing Coinstar's goals - as demonstrated by the approximate 200%(1) increase in Coinstar's stock price since mid-2003 when we began our 4th Wall(TM) strategy. To help sustain this record of value creation, your Board unanimously recommends that stockholders vote the enclosed WHITE proxy card "FOR" your Board's director nominees -- Deborah Bevier, David Eskenazy and Robert Sznewajs.

(1) From the closing price of $12.14 on July 14, 2003 to $36.53, the closing stock price on May 13, 2008.

COINSTAR'S EXECUTION AND STOCKHOLDER VALUE CREATION ARE RECOGNIZED

                 AND SUPPORTED BY INDEPENDENT EXPERTS

On May 1st, Coinstar reported record first quarter results that exceeded both the Company's guidance and Wall Street's expectations. This performance is just the latest example of your Board's and management's record of operational, financial and strategic execution. We are confident that Coinstar is solidly positioned to build on the progress we have made and deliver even greater value in the future. But don't just take our word for it -- read what independent experts have said about Coinstar:

        --  "We hold a high opinion of the company's multifaceted
            growth strategy as well as the efficiency of its business
            model, its strong cash flow generation and senior
            management team."(a) (T.C. Robillard, Bank of America,
            05/02/08)

        --  "Management's ability to execute is very encouraging as is
            its progress in achieving its stated strategic goals."(a)
            (Conley Turner, Wall Street Strategies, 05/09/08)

        --  "CSTR's strategy of leveraging presence of its
            entertainment machines to win a coin and DVD kiosk
            national rollout agreement with WMT is bearing fruit."(a)
            (Ali Mogharabi, B. Riley & Co. LLC, 05/02/08)

        --  "Wal-Mart Contract Expands Again, While Redbox Plans an
            IPO; A Good Story for a Tough Environment, Upgrading to
            BUY"(a) (John Kraft, D.A. Davidson & Co., 05/02/08)

        --  "We have always been bullish on Coinstar's growth
            prospects, but the company managed to surprise us. Growth
            accelerated, and Coinstar expects to hit a run rate of $1
            billion in revenue and $200 million in EBITDA in mid-2009,
            two quarters faster than previously expected. It beat
            guidance in its important coin counting and DVD (Redbox)
            divisions. It continues to grow its gift card division
            rapidly in the U.S. and in the U.K."(a) (Lawrence Berlin,
            First Analysis Securities Corporation, 05/06/08)

        --  "Through rapid investment and expansion of its
            coin-counting machines and DVD rental kiosks, we believe
            Coinstar has carved out an attractive position for itself
            as a premier provider of outsourced services that enable
            retailers to capitalize on underutilized floor space."(a)
            (Nate Brochmann, William Blair & Company, 05/07/08)

    (a) Permission to use quotation neither sought nor obtained.

    SHAMROCK'S RECORD OF FINANCIAL LOSSES AND STOCK PRICE DECLINES

A dissident hedge fund, Shamrock Activist Value Fund, is attempting to install three of its hand-picked director nominees - two paid Shamrock employees and one paid Shamrock advisor - onto your Board. While Shamrock may boast of its record as an "investor," Shamrock's record in actually stewarding companies is much different. If fact, unlike the strong performance and record of value creation achieved by your Board, Shamrock's director representatives have overseen declining financial results and stockholder returns at most companies where Shamrock has gained Board representation.

        --  A Shamrock representative was appointed to the Board of
            Collectors Universe in July 2007. Since then, that company
            has suffered significant stock price declines and
            accelerating financial losses, as evidenced by:

            --  A 36% decline in the stock price as of May 13, 2008;
                and

            --  Operating losses of $1.5 million and $4.9 million in
                the most recent quarter and last nine month period,
                respectively.

        --  At iPass, another of Shamrock's activist investments,
            Shamrock has created "uncertainty regarding iPass and its
            strategic direction."(2) In fact, since Shamrock's
            representatives were appointed to the iPass Board in
            February 2007, iPass's stockholders have suffered:

            --  A 57% decline in the stock price as of May 13, 2008;

            --  Operating losses of $2.2 million and $13.3 million in
                the most recent quarter and last twelve month period,
                respectively; and

            --  Lowest gross margin since 2004 in the most recent
                quarter.

(2) Letter from iPass Lead Independent Director to Shamrock, March 14, 2008. Permission to use quotation was neither sought nor obtained.

We strongly believe that adding even one of Shamrock's nominees to Coinstar's Board could jeopardize the continued execution of the Company's strategy and negatively impact the value of your investment in Coinstar. We suggest Coinstar stockholders consider the following about Shamrock:

        --  Questionable governance record: Shamrock may not hesitate
            to replace its Board designees if they do not advance
            Shamrock's short-term goals and agenda. At iPass, Shamrock
            is replacing one of its own Board designees, who is a
            renowned governance expert, with a paid Shamrock employee
            designee after the governance expert failed to support
            Shamrock's agenda. This record undercuts Shamrock's claims
            of being committed to good corporate governance and makes
            clear to us that when Shamrock calls for "stockholder
            representation," what they really mean is Shamrock
            representation.

        --  No new skills: Based on the credentials provided by
            Shamrock, we do not believe that any of Shamrock's
            nominees would add value to your Board. In fact, any
            relevant experience of Shamrock's nominees is already well
            represented on Coinstar's Board. Your directors bring
            broad and diverse expertise in critical areas including
            retail, branded consumer products, employee relations,
            finance, accounting and banking (including regulatory and
            compliance requirements for financial transactions).

        --  Recycled recommendations: At Coinstar, Shamrock is
            promoting the same tired ideas it has used in other proxy
            campaigns at public companies facing wholly different
            circumstances. While these recommendations may be
            appropriate for some underperforming companies, they are
            not applicable to Coinstar, a company that continues to
            execute its well-developed strategic plan, deliver strong
            returns to stockholders and is actively committed to
            strong corporate governance practices.

        --  Paid and conflicted: All three of Shamrock's nominees work
            for -- and receive regular payments from -- Shamrock.
            These fee arrangements raise doubts about Shamrock's
            nominees' ability to act independently and represent the
            interests of ALL Coinstar stockholders.

        --  Inaccurate statements to stockholders: Four weeks ago,
            Shamrock filed its preliminary proxy statement with the
            SEC touting the credentials of its nominees. Since this
            time, Coinstar has made repeated efforts to correct the
            public record -- namely that Shamrock nominee John
            Panettiere is not a current director of Gencor Industries,
            having "resigned" for unexplained reasons from Gencor's
            Board in 2002, and that he was a Class B director, not an
            elected representative of the public stockholders.
            Notably, Shamrock failed to acknowledge its inaccurate
            statements until just recently, and buried the correct
            information at the end of Shamrock's May 13th release,
            calling this material mistake simply a "clerical error."
            While Shamrock may say it supports "transparent
            communications" with stockholders, Shamrock's record in
            this case demonstrates otherwise.

    COINSTAR'S BOARD HAS DELIVERED OUTSTANDING OPERATING, FINANCIAL
      AND STOCK PRICE PERFORMANCE AND STRONG CORPORATE GOVERNANCE

Shamrock's attempt to replace your directors with its paid representatives is unwarranted. The experience and stewardship of your Board and management team have enabled Coinstar to achieve:

        --  Solid operational execution: Over the past five years,
            your Board and management have successfully transformed
            Coinstar's business from a single product line to a
            diversified industry leader that manages the store-front
            needs in more than 50,000 retail locations around the
            world.

        --  Strong financial performance: As Coinstar's first quarter
            results and subsequent increase in guidance demonstrate,
            we are driving strong financial performance across our
            integrated product portfolio.

        --  Superior stock price performance: Coinstar has delivered
            superior stockholder returns over the past one and three
            year periods, outperforming the S&P 500 by 24% and 83%,
            respectively(3).

        --  Sound corporate governance: Coinstar has a long-standing
            commitment to strong corporate governance policies and
            procedures. Coinstar regularly reviews ways to improve its
            already solid record, as evidenced by such recently
            announced corporate governance enhancements, including the
            early termination of our stockholder rights plan and the
            adoption of a majority voting standard for uncontested
            elections.

Unlike your Board, which has delivered solid operating, financial and stock price performance to ALL Coinstar stockholders, we believe that Shamrock's nominees, if elected, would act only to advance Shamrock's short-term agenda, and not the interests of all Coinstar stockholders.

(3) Based upon closing prices for Coinstar and the S&P 500 as of May 13, 2008.

            SUPPORT YOUR BOARD -- RE-ELECT YOUR DIRECTORS.

                    VOTE THE WHITE PROXY CARD TODAY

Protect your investment in Coinstar and do not risk your company's solid performance and prospects by exposing Coinstar to Shamrock's short-term, self-serving agenda through its paid director nominees. We urge you to support your Board and Coinstar's highly qualified directors who are committed to representing the interests of all Coinstar stockholders:

        --  Deborah Bevier, an independent director since 2002 and
            Chair of the Compensation Committee, has over 35 years of
            experience with both public and private companies in areas
            relevant to Coinstar, including organizational, finance
            and banking experience. Ms. Bevier brings extensive
            banking and regulatory expertise to the Board as Coinstar
            grows its money transfer and e-payment business;

        --  David Eskenazy, an independent director since 2000 and
            Chair of the Audit Committee, has over 24 years of
            accounting and investment experience. Trained as a CPA,
            Mr. Eskenazy brings to the Board an understanding of
            complex accounting rules and diverse investment management
            experience; and

        --  Robert Sznewajs, an independent director since 2002 who
            has served in multiple board and executive leadership
            positions at public and private companies. Mr. Sznewajs,
            also trained as a CPA, is currently President, CEO and
            board member of a publicly traded banking institution, and
            has been a director of the Portland branch of the Federal
            Reserve for 4 years. He brings to the Coinstar Board a
            valuable understanding of the changing financial services
            industry, which is relevant both to our product offering
            and our customer base. Overall, Mr. Sznewajs possesses
            more than 30 years of accounting, finance and banking
            experience, including expertise in commercial and consumer
            payment systems and merchant processing.

Your vote is important, no matter how many or how few shares you own. To vote your shares, please sign, date and return the enclosed WHITE proxy card by mailing it in the enclosed pre-addressed, stamped envelope. You may also vote by phone or Internet by following the instructions on the enclosed proxy card. If you have any questions or need any assistance voting your shares, please contact Georgeson Inc., which is assisting the Company in this matter, toll-free at 1-(888) 605-7543.

On behalf of Coinstar's Board of Directors, we thank you for your continued support.

/s/ Keith D. Grinstein          /s/ David W. Cole

Keith D. Grinstein              David W. Cole
Chairman of the Board           Chief Executive Officer

This announcement does not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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, money transfer, electronic payment solutions, entertainment services and self-service DVD rental. The Company's products and services can be found at more than 50,000 retail locations including supermarkets, drug stores, mass merchants, financial institutions, convenience stores and restaurants.

Important Additional Information

On April 30, 2008, Coinstar began mailing to its stockholders a definitive proxy statement with a WHITE Proxy Card and other materials in connection with Coinstar's 2008 Annual Meeting of Stockholders. STOCKHOLDERS ARE URGED TO READ COINSTAR'S DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS BECAUSE THEY CONTAIN IMPORTANT INFORMATION. The definitive proxy statement and other documents relating to the 2008 Annual Meeting and Coinstar can be obtained free of charge from the SEC's website at http://www.sec.gov. These documents can also be obtained free of charge from Coinstar at its website, www.coinstar.com, under: About Us -- Investor Relations -- SEC Filings. The contents of the websites above are not deemed to be incorporated by reference into the definitive proxy statement or other materials. In addition, copies of the definitive proxy statement, WHITE Proxy Card and other materials may be requested by contacting our proxy solicitor, Georgeson Inc. by phone, toll-free, at 1-(888) 605-7543.

Detailed information regarding the names, affiliations and interests of individuals who are participants, including Coinstar directors and certain executive officers and other employees, in the solicitation of proxies of Coinstar's stockholders is available in Coinstar's definitive proxy statement.

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 "will," "believe," "estimate," "expect," "intend," "anticipate," "goals," "prospects," 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 press release include statements regarding Coinstar, Inc.'s anticipated growth and future operating 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, as well as from risks and uncertainties beyond Coinstar'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, actions taken by Coinstar's stockholders, payment of increased service fees to retailers, fewer than expected installations, 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 our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. These forward-looking statements reflect Coinstar's expectations as of the date of this press release. Coinstar undertakes no obligation to update the information provided herein.

    CONTACT: Coinstar, Inc.
             Brian Turner, Chief Financial Officer, 425-943-8000
             or
             Media
             Marci Maule, Director Public Relations, 425-943-8277
             or
             ICR, Inc.
             Tom Ryan, 203-682-8200
             or
             Joele Frank, Wilkinson Brimmer Katcher
             Matthew Sherman / Barrett Golden, 212-355-4449

    SOURCE: Coinstar, Inc.