Abstract: A compact disc (CD) dispenser mounted on a bagging machine is disclosed. The dispenser includes turret and transfer assemblies. The turret assembly includes an indexing system to sequentially and one at a time position mandrels carrying CD disc sets at a dispensing location. The transfer assembly includes a pair of pickup heads driven by the rotary actuator. The pickup heads are adapted sequentially and one at a time to remove discs from a set positioned at the dispensing location and after 180.degree. rotation of the fluid actuator, drop a picked up disc into a waiting bag in the bagging machine.