Peet's Coffee & Tea, Inc. Introduces 2004 African Blend Coffee; Highlights Sustainable Relationship with Growers in Tanzania

Business Wire, August 2, 2004

EMERYVILLE, Calif. -- Peet's Coffee & Tea, Inc. (Nasdaq:PEET), a specialty coffee roaster and marketer, today introduced its new 2004 African Blend Coffee. This special offering combines the highest-quality coffees from East Africa, creating a unique Peet's blend that balances stout body and fine acidity with delicate floral aromatics.

The introduction of this blend highlights a Tanzania lot that Peet's purchased directly from a group of 645 small-scale growers, representing the first time that coffee growers in Tanzania have been able to bypass the national coffee auction and sell directly to roasters. This historic accomplishment was made possible through the support of Peet's non-profit partner, TechnoServe, an organization committed to supporting entrepreneurial men and women in the developing world.

Like many other coffee growers affected by the global coffee crisis of oversupply and static demand, Tanzanian coffee growers have been challenged with poor quality crops, low yields and an inefficient marketing system, all of which significantly impacted the growers' livelihoods. In 2000, Peet's joined TechnoServe in working with members of the Association of Kilimanjaro Specialty Coffee Growers, which now totals more than 6,000 small-scale farmers, to improve production for higher-quality and more consistent coffee. The installation of centralized pulperies has been essential to improving production. With centralized pulperies, the crucial steps of fermentation and washing are carefully controlled, replacing the haphazard practice of farmers pulping their own cherries with varying equipment and varying results.

"We are pleased to see the dramatic progress in the quality of the coffees that these farmers are producing, and proud to be working directly with them to ensure that their hard-earned gains can be maintained," said Doug Welsh, vice president of coffee, Peet's Coffee & Tea, Inc. "More importantly, we are fully committed to nurturing our relationships with growers to help them sustain their livelihood for the long-term, while continuing to provide our customers with the freshest, highest quality coffee available."

Peet's African Blend Coffee

Peet's African Blend is a blend of unique lots from the 2004 crop. In the cup it is floral and full with a bright flavor suggestive of tangerine.

Available while supplies last, African Blend is priced at $13.95 per pound and can be purchased in Peet's retail stores, at www.peets.com or by calling 800-999-2132. Peet's African Blend will also be available in 12-ounce bags within Peet's stores inside Larry's Markets(TM) throughout the Greater Seattle Area and at select grocery stores nationwide.

About Peet's Coffee & Tea, Inc.

Founded in Berkeley, Calif. in 1966, Peet's Coffee & Tea, Inc. is a specialty coffee roaster and marketer of fresh, deep-roasted whole bean coffee for home and office enjoyment. Peet's fresh-roasted coffee, hand-selected tea and related items are sold in several distribution channels including specialty grocery and gourmet food stores, online and mail order, office and restaurant accounts and company-owned stores throughout the U.S. For information about Peet's Coffee & Tea, visit www.peets.com or call 800-999-2132.

About TechnoServe

Founded in 1968 and headquartered in the U.S., TechnoServe helps entrepreneurial men and women in poor rural areas of the developing world to build businesses that create income, opportunity and economic growth for their families, communities and countries. TechnoServe's mission is based on the premise that economic development is a critical precursor to social development, because infrastructure like schools, health clinics and libraries cannot be built or maintained without financial resources, which are generated by profitable businesses and the jobs and incomes they provide. TechnoServe is currently assisting coffee growers in Central America (including El Salvador, Honduras and Nicaragua) and Tanzania. TechnoServe also works in Peru, Ghana, Kenya, Mozambique and South Africa. For more information, visit www.technoserve.org, or call Mara Neville at 800-999-6757.

This press release contains statements that are not based on historical fact and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Because of the uncertainties inherent in these forward-looking statements, the Company's actual results could differ materially from those set forth in forward-looking statements. The Company's estimates regarding its operations and financial results are based on currently available operating, financial and competitive information. Actual future results and trends may differ materially depending on a variety of factors including but not limited to, risks arising from accounting adjustments; the Company's ability to implement its business strategy, attract and retain customers, and obtain and expand its market presence in new geographic regions; the availability and cost of high quality Arabica coffee beans; consumers' tastes and preferences; and competition in its market as well as other risk factors as described more fully in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 28, 2003.