Provides Convenient, Economical Prints from Digital Cameras

BELLEVUE & SEATTLE, Wash.--(BUSINESS WIRE)--Jan. 9, 2003--Coinstar
Inc. (Nasdaq:CSTR) and PhotoWorks Kiosks, Inc. today announced the
launch of a pilot that provides high-quality prints and photo CDs to
digital camera users. The pilot is scheduled to begin in January 2003 at
approximately 50 supermarket locations in Reno, Nevada, Charlotte, North
Carolina, and Seattle, Washington. The pilot is expected to run for six
months.

To use the service, a digital camera user brings a digital memory
card or CD to the Coinstar Center. At the Center, the customer can view
the images on a touchscreen interface, select the images to print, and
complete the credit card order--a process that can take less than two
minutes. The images are uploaded to PhotoWorks for advanced digital
photo printing. Professional quality prints and photo CDs are then
delivered to the customer, via mail, typically within two to three
days--eliminating the need for a return trip to pick up photos. A 4"x6"
print can cost as little 29 cents.

"This service is consistent with our strategy of making Coinstar a
highly convenient touchpoint for a wide range of consumer services that
save people time and money, and simplify their lives," said Dave Cole,
chief executive officer of Coinstar. "While the use of digital cameras
has increased significantly, printing or uploading digital images from
home can be very expensive and time consuming."

According to industry data, 14.3 percent of U.S. households owned a
digital camera at the end of 2001. And by the end of 2006, 48 percent of
households are expected to have digital cameras--provided there is a
convenient, economical way to get prints.

"We're providing a print solution that is convenient, easy to use,
and less expensive than home printing," said Gary Christophersen,
President of PhotoWorks Kiosks, Inc. "We believe the accessibility of
Coinstar Centers, combined with value pricing make this service an
attractive option for the rapidly growing number of digital camera owners."

About Coinstar Inc.

Coinstar Inc. owns and operates the only network of
supermarket-based machines that offer coin counting and other electronic
services. The company has more than 10,500 machines linked by a
sophisticated interactive network throughout the United States, as well
as in Canada and the United Kingdom.

About PhotoWorks Kiosks, Inc.

PhotoWorks Kiosks, Inc. is a wholly owned subsidiary of PhotoWorks,
Inc. (OTCBB:FOTO), a leading online, direct mail, and retail photo
services Company. Founded in 1978, PhotoWorks, Inc. combines 24 years of
experience with a tradition of innovation, including being the first to
offer free scanning, online archiving, and e-mail sharing services to
both film and digital camera users. PhotoWorks Kiosks, Inc. provides
digital cameras users with easy solutions, at a retail location, for
getting digital prints and CDs.