Convenient Entertainment; 7-Eleven® Rolls Out Redbox® $1 Per Night New Release DVD Rentals

[The following is a release from 7-Eleven and Redbox]

January 5, 2009

Florida businesswoman, movie fan and 7-Eleven® customer Susan Gutentag loves the new redbox fully automated DVD rental kiosks now featured at select 7-Eleven stores. They’ve made her a hero with her employees and grandchildren. Redbox, the dollar-per-night rental service 7-Eleven, Inc., first piloted at select Orlando and Reno 7-Eleven stores, has won rave reviews from customers like Gutentag, so much so that the nation’s leading convenience retailer has an agreement to roll out the popular redbox kiosks to approximately half of its U.S. stores nationwide by year end. This would make 7-Eleven, Inc. one of redbox’s largest retail partners and will increase current redbox locations by more than 15 percent in 2009. To provide customers easy 24-hour access to the latest DVDs, redbox kiosks will be located primarily on the exterior of participating 7-Eleven stores. “I’m excited on three levels about redbox at 7-Eleven,” Gutentag said. “First for my company; second for my family, particularly my grandkids; and finally, for me, personally. This is so much easier and cheaper than other DVD rental alternatives – both in-store and online.” Gutentag’s graphics company requires crews to be on the road much of the time, installing interior and exterior signage for businesses across the Sunshine State. “I have a very mobile business and now, with redbox, our crews can stop at 7-Eleven to get gas, pick up snacks and grab a movie to watch on a laptop DVD player in the evening after they complete their day’s work. The beauty of it is that they can return the movie to any redbox location.” According to Gregg Kaplan, chief executive officer, redbox, “By featuring the latest DVD rentals for $1 per night, redbox meets another specific need for busy 7-Eleven customers – entertainment.” Redbox’s ease of use, both for customers and employees, made the service especially attractive to 7-Eleven, according to Kevin Elliott, 7-Eleven senior vice president of merchandising, marketing and logistics. “This is another example of 7-Eleven’s move to be more relevant to consumers seeking affordable entertainment. Redbox is yet another convenience 7-Eleven can offer customers and one that will not only save them time, but money.” Gutentag added she plans to drop her monthly DVD subscription service now that redbox has come to town. “Redbox is quicker and cheaper. I don’t have to wait for a movie to be mailed or pay new release rental rates. And I don’t have to take my grandkids to a video store where they are overwhelmed by the selection of movies. At 7-Eleven, it’s easy, plus I can rent a movie at a place I already go to everyday without having to make a special trip to pick out a movie.” 7-Eleven will promote its new service in a variety of ways starting late January. There will be special signs at stores on gasoline pumps, windows and pole signs. The company will cross-promote with redbox, which will market the partnership through grassroots efforts that may include email and text messages notifying local customers when redbox comes to 7-Eleven stores in their community. Redbox Makes Renting Easy Each fully automated redbox kiosk holds approximately 700 DVDs, representing up to 200 different new release movie titles. Consumers simply use a touch screen to select their favorite movies, swipe a valid credit or debit card and go. The complete rental transaction takes only moments. Receipts are provided to customers digitally and any questions may be answered by calling the toll-free number on the machine. Customers can keep the DVD for as long as they’d like for $1 per night plus tax, and return it to any of the more than 12,000 redbox locations nationwide via redbox’s convenient rent and return anywhere® policy. After 25 nights, rental charges cease and the DVD is the customer’s to keep. For added convenience, customers may also visit www.redbox.com to choose their DVD online and pick it up immediately at the redbox location of their choice. 7-Eleven: Entertainment Destination Redbox is the most recent addition to 7-Eleven’s push to become an entertainment destination. Late last year, 7-Eleven began offering the most popular video games, prepaid game cards and DVDs for purchase at participating 7-Eleven stores. Elliott sees it as a way to offer consumers an affordable at-home entertainment alternative in a tight economy. “Movie ticket and concession prices may become unaffordable to American families strapped by reduced income and increasing expenses,” Elliott said. “For the price of a single movie ticket, a family of four can rent a just-released movie at the new redbox and purchase Slurpee® drinks, a bag of our new 7-Select® candy and some microwave popcorn. I think more and more people will recognize the great value of this new convenience.” Coinstar: Focused on Convenience Redbox, majority owned by Coinstar, Inc., is the largest kiosk provider of DVDs to rent with more than 12,000 locations nationwide. Coinstar’s 4th Wall® program for retailers addresses an area of the store generally found between the cash registers and front doors. Products and services that are part of the 4th Wall area provide convenience and value to consumers and enhanced revenue opportunity for retailers. “Redbox kiosks have proven to be a great addition to our 4th Wall retail offering and are a key component of Coinstar’s focus on marketing products and services that provide consumer convenience and make consumers’ lives easier,” said Paul Davis, chief operating officer, Coinstar, Inc. “With 7-Eleven’s convenient locations and the growing popularity of self-service, redbox kiosks are ideal for today’s busy, price-sensitive consumers.”

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