Coinstar To Acquire Travelex Money Transfer

TMT is privately owned and is a wholly-owned subsidiary of Travelex Ltd. ("Travelex") based in London. TMT was established in mid-2003 and uses leading edge Internet-based technology to provide consumers with an easy-to-use, reliable and cost-effective way to send money around the world. In addition to company-owned locations, TMT has agreements with banks, post offices, and other retail locations to supply its service.

TMT's revenues for the trailing twelve months ended December 31, 2005, were approximately $5.8 million with a negative EBITDA of approximately $10.4 million. As of March 31, 2006, TMT employed approximately 125 people. Its primary send markets are the United Kingdom, France and Italy. Travelex, either directly or by means of the local entities having the appropriate licenses, will continue to operate the money transfer business in the United States, France and Italy during a transitional period pending receipt by Coinstar of required governmental licenses.

"We are very pleased to announce this acquisition, and we look forward to adding money transfer to our 4th Wall product portfolio," said Steve Verleye, senior vice president and general manager of E-Pay at Coinstar, Inc. "TMT has done an excellent job designing its technology infrastructure and building its global distribution network. In addition, their commitment to governmental regulatory and compliance standards has been superior, which is critical as the network grows."

"Coinstar's existing e-payment offerings and expansive retail channel in North America was very attractive to us," said Mohit Davar, chief executive officer of TMT. "We look forward to joining forces with Coinstar to build out our network in North America and around the world."

The global money transfer market is valued at between $250 and $300 billion in transferred value. It's also estimated that 175 million people live outside of their countries of origin, one of the factors driving money transfer industry growth rates at about 10 percent annually.

Coinstar's 4th Wall products and services help retail customers maximize profit at the front of the store between the cash registers and the front doors. The addition of money transfer enhances Coinstar's offerings and strengthens its e-payment services product line. Further, money transfer is one of the top services retailers request for the front end. The company's existing e-payment products consist of prepaid long distance, prepaid wireless airtime, gift cards, and prepaid debit cards. Similar to money transfer, many of these services cater to immigrants and the unbanked market. Other services provided through Coinstar and its affiliates at the front end include self-service coin counting, skill crane machines, bulk vending, and DVD rental kiosks.