Coinstar and Eddie Bauer Team up to Offer Consumers Free Coin Counting; Eddie Bauer is First Apparel eCertificate Available at Coinstar Centers Through Coin to Card Program

Business Wire, July 25, 2006

BELLEVUE, Wash. -- Coinstar, Inc. (Nasdaq:CSTR) today announced Eddie Bauer(R) as the latest addition to its Coin to Card(TM) program. Consumers pay no coin-counting fee when converting their loose change to a variety of nationally-branded gift cards and eCertificates at Coinstar Centers. Eddie Bauer is the first apparel eCertificate in the Coin to Card program and it is currently available at more than 6,500 Coinstar supermarket and drug store locations across the United States.

"We're delighted to offer users the ability to use their spare change to purchase merchandise from Eddie Bauer, one of the most established and respected apparel retailers in the country," said Alex Camara, senior vice president and general manager of worldwide coin at Coinstar, Inc. "Eddie Bauer is our first eCertificate that can be used online or at a physical retail location."

To use the Coin to Card service, consumers simply deposit their coins into the Coinstar Center -- and at many locations bills are accepted -- the coin is then counted, and the full value is applied to the selected gift card. The gift card or eCertificate is dispensed directly from the machine and can be used right away to purchase merchandise from selected retailers.

"At Eddie Bauer we're proud of our spirit of innovation, and we see the program with Coinstar as one more way to bring innovation to our customers," said Lisa Erickson, spokesperson at Eddie Bauer. "The household average of $99 in forgotten spare change can be used to purchase innovative down jackets, functional gear, quality denim and more at any of our retail locations or online at www.eddiebauer.com."

Introduced in 2005, the Coinstar Coin to Card program has nine national retailers offering gift cards and/or eCertificates including Amazon.com, Borders, Hollywood Video, iTunes, Linens 'n' Things, Pier 1 Imports, Starbucks, Virgin Digital and now Eddie Bauer. To locate Coinstar Centers offering this free coin counting program consumers can access a machine locator at www.coinstar.com.

About Eddie Bauer

Established in 1920 in Seattle, Eddie Bauer is a specialty retailer that sells casual sportswear and accessories for the "modern outdoor lifestyle." Eddie Bauer believes the Eddie Bauer brand is a nationally recognized brand that stands for high quality, innovation, style and customer service. Eddie Bauer products are available at approximately 375 stores throughout the United States and Canada, through catalog sales and online at www.eddiebauer.com and www.eddiebaueroutlet.com. Eddie Bauer also participates in joint venture partnerships in Japan and Germany and has licensing agreements across a variety of product categories.

Statements in this press release that are not historical facts are forward-looking statements -- that is, statements related to future, not past, events that are subject to risks and uncertainties. Although we believe such statements are based on reasonable assumptions, actual outcomes and results may differ materially from those projected. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, risks associated with general economic conditions, consumer confidence and consumer spending patterns; risks associated with changes in weather patterns; risks associated with legal and regulatory matters; risks associated with rising energy costs; and risks associated with reliance on information technology. Except as required by law, we undertake no obligation to update any of these forward-looking statements.

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, electronic payment solutions, entertainment services and self-service DVD rental. The company's products and services can be found at more than 60,000 retail locations including supermarkets, drug stores, mass merchants, convenience stores, and restaurants. For more information, visit www.coinstar.com.