941604--2/27/2006--COINSTAR

related topics

{customer, product, revenue}

{product, market, service}

{product, liability, claim}

{stock, price, operating}

{acquisition, growth, future}

{system, service, information}

{control, financial, internal}

{operation, natural, condition}

{property, intellectual, protect}

{operation, international, foreign}

{condition, economic, financial}

{competitive, industry, competition}

{provision, law, control}

{gas, price, oil}

{regulation, change, law}

Factors That May Affect Our Business, Future Operating Results and Financial Condition The termination, non-renewal or renegotiation on materially adverse terms of our contracts with any one or more of our significant retail partners could seriously harm our business, financial condition and results of operations. We may be unable to continue to pay our retail partners a service fee that allows us to operate our coin-counting and entertainment services machines at historical levels of profitability. We may be unable to attract new retail partners and penetrate new markets and distribution channels. We may be unable to identify and define product trends, as well as to anticipate, gauge and react to changing consumer demands in a timely manner. We may be unable to achieve the strategic and financial objectives for our entry into the entertainment services business, and our failure to do so could materially and adversely affect our business, operating results and financial condition. Competitive pressures could seriously harm our business, financial condition and results of operations. Defects, failures or security breaches in our coin-counting machines operating system could harm our business. Lack of consumer confidence, whether real or perceived, in our coin-counting machines could harm our business. We may be unable to adequately protect or enforce our patents and other proprietary rights. Acquisitions involve risks that could harm our business and impair our ability to realize potential benefits from such acquisitions. Our future operating results may fluctuate. Higher petroleum prices may adversely affect our operating results and reduce our profitability. We depend upon third-party manufacturers, suppliers and service providers. There are risks associated with conducting our businesses and sourcing goods internationally. Our business, operating results and financial condition can be adversely affected by severe weather, natural disasters and other events beyond our control, such fires, power failures, telecommunications loss and terrorist attacks. We are subject to federal, state, local and foreign laws and government regulation specific to our business. Recall of any of the products dispensed by our entertainment services machines or by the entertainment services industry generally could adversely affect our entertainment services business. We may be subject to product liability claims if people or property are harmed by our products and services. Our stock price has been and may continue to be volatile. If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. Our anti-takeover mechanisms may affect the price of our common stock and make it harder for a third party to acquire us without the consent of our board of directors.

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941604--2/27/2006--COINSTAR_INC