Coinstar Signs Definitive Agreement to Sell Its Money Transfer Business to Sigue Corporation

BELLEVUE, Wash. and LOS ANGELES, Aug. 24 /PRNewswire-FirstCall/ -- Coinstar, Inc. (Nasdaq: CSTR) and Sigue Corporation ("Sigue") today announced the signing of a definitive agreement for Sigue to purchase Coinstar's money transfer business.  The aggregate purchase price is expected to be $41.5 million, which will be subject to a post-closing net working capital adjustment.  In addition, Coinstar will be financing a portion of the purchase price payable by Sigue under the definitive agreement through a promissory note.  The closing of the transaction is expected next year, subject to certain closing conditions and required regulatory approvals.  

"We believe that our global money transfer business should complement Sigue's already extensive network of money transfer agents in the United States and Latin America," said Paul Davis, chief executive officer of Coinstar, Inc. "In addition, the sale of the money transfer business allows Coinstar to direct its full efforts toward our automated retail strategy."

Guillermo de la Vina, chief executive officer of Sigue stated, "Following the closing of the transaction, Sigue will become one of the largest global money transfer companies with pay out locations in over 130 countries. This acquisition is complementary with our existing strategy and will allow us to better serve customers here in the U.S. and around the world."  He continued, "We are very pleased to enter into this agreement with Coinstar, which will allow both companies to focus on our core competencies and strengths."

Coinstar filed a Current Report on Form 8-K that contains certain additional information regarding the transaction.

Coinstar announced financial results on July 29 that reflected the money transfer business as discontinued operations and provided 2010 third quarter and full year guidance for ongoing operations that did not include results related to the money transfer business.

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 rental and Coinstar® self-service coin-counting brands. The company has approximately 26,900 DVD kiosks and 19,000 coin-counting kiosks in supermarkets, drug stores, mass merchants, financial institutions, convenience stores, and restaurants. For more information, visit www.coinstar.com.

About Sigue Corporation

Headquartered in Sylmar, California, Sigue is a leading financial services company providing international electronic money transfer services to Mexico, Central America, South America, the Caribbean and the Philippines.  The company is privately held and operates through a comprehensive network of agents throughout the U.S., Mexico and Guatemala.  Sigue has payment arrangements with leading financial institutions in Mexico, Central and South America including the Caribbean and the Philippines.

Certain statements in the foregoing are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including phrases conveying expectation or intent and other expressions identifying future performance. These forward-looking statements are subject to a number of substantial risks and uncertainties and may be identified by the words "will," "anticipate," "believe," "expect," "may," or "intend," or similar expressions, but their absence does not mean that the statement is not forward-looking. Forward-looking statements are not guarantees of future events, results, performance or conditions, and these may vary materially from those expressed or implied in those statements. Differences may result from actions taken by Coinstar or Sigue, as well as from risks and uncertainties beyond Coinstar's control, including those relating to Sigue. Such risks and uncertainties include, but are not limited to, actions resulting from federal, state, local and foreign laws and regulations or taken by governing bodies, the ability to obtain the required licenses, permits, consents, approvals, authorizations, qualifications and orders from the appropriate U.S. and foreign governmental entities, the acquisition of the required funding by Sigue, Sigue's ability to repay the promissory note, the renegotiation on materially adverse terms of the definitive agreement and the possibility that the transaction will not close or that closing will be delayed. The foregoing list of risks and uncertainties is illustrative, but by no means exhaustive.  For more information on factors that may affect Coinstar, please review "Risk Factors" described in Coinstar, Inc.'s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the "SEC"), as well as other public filings with the SEC. These forward-looking statements reflect Coinstar's expectations as of the date hereof. Coinstar undertakes no obligation to update the information provided herein.

SOURCE Coinstar, Inc.

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