Coffee People acquires three Hot 'N Now locations for Motor Mokas

Business Wire, Dec 26, 1996

PORTLAND, Ore.--(BUSINESS WIRE)--Dec. 26, 1996--Coffee People Inc. (NASDAQ:MOKA), a specialty coffee retailer and operator of coffee houses, plans to open three additional drive-through stores in the Portland area.

The company announced today that is is acquiring the locations -- formerly Hot 'N Now sites in the metropolitan area -- from Taco Bell and will convert the existing facilities into Motor Mokas(R).

Coffee People currently has four Motor Mokas in operation in the Portland area. "Our drive-through stores are extremely popular with customers and highly profitable," said Jim Roberts, chief executive officer. "We expect to have these three Motor Mokas open in spring 1997."

The company is purchasing the real estate and improvements at two of the sites while acquiring the building with a ground lease at the third site.

"These new Motor Mokas are part of our strategic plan to enlarge the company's operations by a total of 30 new stores in selected cities between now and the end of 1997," said Roberts. "This announcement brings to eight the number of new store units opened or announced since our initial public offering in late September 1996. That is slightly more than 25 percent of our goal over the next 12 months."

Coffee People recently opened a new store in Tigard, Ore.; two in the Denver area -- the company's first stores outside Oregon -- and announced the planned opening of stores in Huntington Beach and San Diego, Calif. in early 1997. The company is also investigating potential sites in Chicago, Dallas, Houston and San Francisco.

In business since 1983, Coffee People currently owns and operates 22 outlets in Oregon and Colorado including coffee houses, drive-through Motor Mokas(R) and Aero Moka(TM) kiosks at the Portland International Airport. For the first nine months of 1996, the company had revenues of $9 million. -0-

This news release contains forward-looking statements that involve a number of risks and uncertainties. Actual results may differ materially from projected results. For a complete discussion of the risks associated with forward-looking information, refer to the Risk Factors contained in the company's Registration Statement on Form SB-2 as filed with the Securities and Exchange Commission, effective Sept. 25, 1996.

CONTACT: Coffee People Inc.

Ken Ross, 503/223-7714

or

In.ves'com

Dolores Chenoweth, 503/291-1924