New World Coffee announces Connecticut as a new market, purchases Ridgefield Coffee; expects up to ten additional sites in Connecticut through 1997

Business Wire, August 5, 1996

NEW YORK--(BUSINESS WIRE)--Aug. 5, 1996--New World Coffee Inc. (NASDAQ:NWCI), announced today it has entered into the Connecticut market through the acquisition of Ridgefield Coffee Company.

The company said if purchased Ridgefield Coffee, which operates a 1600 square foot store in Ridgefield, Conn., with annual revenues of approximately $600,000 and over 20% operating cash flow margins, for $325,000, consisting of $150,000 in cash and a $175,000 two year note paying 6% interest.

R. Ramin Kamfar, president and chief executive officer of New World Coffee said, "We are very pleased to be able to acquire Ridgefield Coffee at a great price. Their specialty coffee bar fully meets our new store prototype demographic, size and financial criteria, and allows us a foothold in the Connecticut market, a new market which we have targeted."

Kamfar added, "New World expects to add up to ten more stores in Connecticut through year end 1997."

New World Coffee Inc., the largest coffee bar retailer based in the Northeastern United States, currently owns and operates 30 espresso bars in the New York City, New Jersey and Pennsylvania areas and has six leases for upcoming locations.

CONTACT: New World Coffee Inc.

R. Ramin Kamfar

212/343-0552 ext. 21

or

KCSA

Paul Holm/Joseph A. Mansi

212/682-6300 ext. 201/205