Diedrich Coffee Enters Office Coffee Service Market Through A New Partnership With Arrowhead Mountain Spring Water

Business Wire, March 12, 1998

IRVINE, Calif.--(BUSINESS WIRE)--March 12, 1998--Diedrich Coffee, (Nasdaq: DDRX) a premium retailer and roaster of the world's best coffees and Arrowhead Mountain Spring Water, the nation's largest premier spring water company, have joined together to bring Diedrich Coffee products to offices serviced by Arrowhead's growing coffee sales division.

The Orange and Los Angeles Counties-based test represents Diedrich Coffee's introduction into the office coffee service market.

"Consumers are demanding the same premium roasted coffees they enjoy outside of the office environment during working hours," said Ed Apffel, director of wholesale for Diedrich Coffee.

"Our partnership with Arrowhead puts us in the right place at the right time to meet the demand."

As part of the agreement, the Arrowhead coffee sales division will make four different Diedrich Coffee blends available to customers throughout Los Angeles, Orange and San Diego counties.

Arrowhead Mountain Spring Water Co. was founded in 1894 and has grown to be the leading brand of spring water in Southern California.

"Diedrich Coffee, like Arrowhead, is committed to serving an exceptional product with a high level of customer service," said Dimitrios Smyrnios, general manager for Arrowhead Mountain Spring Water Co. "We believe that our customers will enjoy the convenience of having high-quality Diedrich Coffee delivered straight to their offices."

Diedrich Coffee owns and operates 37 neighborhood coffeehouses in California, Texas and Colorado. Diedrich Coffee has been publicly traded on Nasdaq since September of 1996. More information about Diedrich Coffee may be obtained by calling 800/354-5282 or visiting the Diedrich Web site at www.diedrich.com.

CONTACT: Diedrich Coffee Inc., Irvine

Mike Reeves, 714/260-6704