Redbox™ Surpasses Blockbuster in Number of U.S. Locations

OAKBROOK TERRACE, Ill.--(BUSINESS WIRE)--Redbox, the fully automated DVD rental system featuring new release rentals for $1 per night, now features more U.S. retail locations than Blockbuster. Launching only 12 prototype locations in 2002, redbox recently installed its 6,000^th fully automated kiosk – surpassing Blockbuster in number of rental locations nationwide to become the industry leader. Featuring the industry’s only rent-and-return anywhere policy, an unbeatable $1 per night price point and convenient locations, redbox offers consumers a more convenient home entertainment solution.

“Redbox offers a level of service and convenience that our competitors simply can’t provide”

“Redbox offers a level of service and convenience that our competitors simply can’t provide,” said Gregg Kaplan, chief executive officer, redbox. “Customers continue to embrace the redbox service, and our proven technology and production timeline have allowed us to expand rapidly in the competitive home entertainment industry. We expect this growth to continue at a rapid pace through 2007 and beyond as redbox expands its leadership position and becomes a household name in communities nationwide.”

Redbox is now available in 46 states and expects to be operational in every state in the continental U.S. by the end of 2007. The streamlined, efficient installation of redbox kiosks allows the brand to penetrate new markets in under a month and provides consumers ready access to the latest movie titles.

Each fully automated redbox kiosk holds more than 500 DVDs, representing 100-150 of the newest movie releases, with new titles available every Tuesday. Consumers simply use a touch screen to select their favorite movies, swipe a valid credit or debit card and go. The complete transaction takes less than 60 seconds. Customers can keep the DVD for as long as they’d like for $1 per night plus tax. After 25 nights, rental charges cease and the DVD is the customer’s to keep.

In addition, redbox’s patented rent-and-return anywhere technology allows consumers to rent DVDs at one location and return them to any redbox nationwide – a convenience not offered by the leading brick-and-mortar brands. Consumers also can guarantee their favorite movie is in stock and waiting for them, by reserving a DVD online at www.redbox.com and picking it up at the kiosk of their choice.

Redbox kiosks are available at select McDonald’s^® restaurants, leading grocery stores and other retailers nationwide, reaching consumers where they already shop. In November 2007, redbox will install more than 400 new locations in markets including Baltimore; Dallas; Dayton, Ohio; Las Vegas; Little Rock, Ark. and Roanoke, Va.

About Redbox

Redbox Automated Retail, LLC is the nation’s leader in automated DVD rental services. Redbox continues to revolutionize the DVD rental industry with kiosks featured in the nation’s leading grocery stores, select McDonald’s restaurants and other locations nationwide. In September 2006, redbox launched prepaid online reservations – offering guaranteed and immediate access to new release titles with no membership or mailman required. Redbox Automated Retail, LLC is owned by Coinstar, Inc., McDonald’s Ventures, LLC, a wholly-owned subsidiary of McDonald's Corporation, and private investors. More information about redbox can be found at www.redbox.com.