Coinstar, Inc.
Ticker:CSTR 13231 SE 36th Street, Suite 200
Exchange:NASDAQ-National Market Bellevue, WA 98006
Industry:Service (SIC Code 7299) (206) 644-6789

Offering Information
Type of Shares:Common Shares Filing Date:5/9/97
U.S. Shares:3,000,000 Offer Date:7/2/97
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:3,000,000 Offer Price:$10.50
Secondary Shares:0 Gross Spread:$0.74
Offering Amount: $42,000,000 Selling:$0.44
Expenses: - Reallowance:$0.10
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
Smith Barney Inc.Lead Manager (212) 723-7300
Hambrecht & Quist IncorporatedCo-manager (415) 439-3626

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Cooley Godward Castro Huddleson & Tatum
Bank's Law Firm: Wilson, Sonsini, Goodrich & Rosati
Auditor: Deloitte & Touche
Registrar/Transfer Agent: American Securities Transfer, Inc

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 3/31/97 3/31/96 3/31/97
Revenue:$8.31$4.00$0.75Assets:$81.54
Net Income:-$15.97-$7.50-$2.31Curr Assets:
EPS:Liabilities:$86.02
Prior EPS:-$0.68$0.56Curr Liabilities:
Cash Flow/Oper:-$3.35Equity:-$4.48
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company develops, owns and operates a network of automated, self-service coin counting and processing machines that provide consumers with a convenient means to convert loose coins into cash. The Coinstar units located in supermarkets nationwide, accept and count accumulated loose coins deposited by consumers and issue vouchers listing the total number denominations and dollar value of coins processed less a processing fee of 7.5% charged by the company. The vouchers are redeemable by customers at store cashiers for either credit towards retail purchases or cash, regardless of whether a purchase is made. The company believes its service addresses a significant consumer need for a convenient and reliable coin processing method. The Coinstar service provides consumers with a means of redeeming accumulated loose coins and an alternative to manually presorting, counting and wrapping coins typically required for cash redemption at a bank. Since inception, the Coinstar network has processed over 7 million customer transactions consisting of over 5 billion coins worth over $190 million.

Use of Proceeds
The proceeds from the proposed offering will be used to fund the continued expansion of the Coinstar network; for working capital, product research and development activities and general corporate purposes.

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