Starbucks Builds Continued Success with T-Mobile HotSpot — the Nation's Largest Commercial Wi-Fi Network

Business Wire, July 6, 2004

SEATTLE -- High-Speed Wireless Internet Service is Now Available in More Than 3,100 Starbucks Coffeehouses Nationwide as T-Mobile HotSpot Locations Are Added to Stores in Five States

Finding a fast, convenient and reliable Wi-Fi Internet connection is now much easier for Starbucks customers in Indiana, Kansas, Missouri, New Mexico and Wisconsin. Starbucks Coffee Company (Nasdaq:SBUX), T-Mobile USA, Inc. and HP (NYSE:HPQ) (Nasdaq:HPQ) have expanded their leadership role in offering consumers the ability to stay connected on-the-go. The T-Mobile HotSpot wireless broadband Internet service has been added to more than 110 Starbucks stores in these five states.

With more than 3,100 Starbucks coffeehouses now offering Internet access nationwide, the Company continues to build on the success of T-Mobile HotSpot in its stores. Starbucks has extended the reach of the T-Mobile HotSpot service to new markets, and is providing customers with exclusive digital entertainment content found only by connecting at Starbucks.

"Starbucks customers have clearly embraced Wi-Fi technology as part of their daily routine," said Ken Lombard, president of Music and Entertainment for Starbucks. "The convenience and reliability of T-Mobile HotSpot is bringing customers in more frequently and keeping them in the stores longer, primarily during off-peak hours. For these reasons, we believe T-Mobile HotSpot is having a positive impact on our business and is enhancing the Starbucks Experience for our customers."

The T-Mobile HotSpot service at Starbucks is proving to be very successful. With millions of customer accesses since the August 2002 launch, customers are finding that Starbucks is a great place to stay connected to e-mail or the Web while they're away from home or the office. Internal research indicates that T-Mobile HotSpot subscribers visit Starbucks more often -- an average of eight times per month -- and spend more time in the stores -- the average connection lasts approximately one hour. Nearly 90 percent of T-Mobile HotSpot accesses are during off-peak store hours, which are after 9 a.m.

Starbucks continues to add value to the HotSpot experience in its stores by offering users access to exclusive entertainment content found only on the T-Mobile HotSpot service at Starbucks. As Starbucks preferred technology partner, HP powers the multimedia content and is collaborating with the Company to create new and meaningful ways for customers to enjoy digital content -- driving change and innovation in entertainment distribution and consumption.

Throughout the month of July, T-Mobile HotSpot users at Starbucks can access interactive multimedia content from Roadtrip Nation, and follow the journey of nine college students as they trek across the United States to capture stories of leaders in society who have defined their own roads in life. HotSpot users at Starbucks can watch interviews with leaders from past roadtrips, track the progress of the summer 2004 Student Roadtrips and learn more about Roadtrip Nation. More information on Roadtrip Nation can be found at www.roadtripnation.com, or by connecting at Starbucks.

"Compelling entertainment content is -- and will continue to be -- an important part of the T-Mobile HotSpot service at Starbucks," said Lombard. "From the start, we have considered the T-Mobile HotSpot network a platform to enable new customer experiences in our stores. Whether it's the ability to interact with exclusive content from the Sundance Film Festival, or listen to great musicians like Sarah McLachlan, Willie Nelson or legendary blues artists, logging in at Starbucks has become a rich Internet experience."

"Starbucks and T-Mobile HotSpot are a natural fit," said Joe Sims, vice president and general manager for T-Mobile HotSpot. "As more and more Starbucks locations now offer the T-Mobile HotSpot service, our customers know they can easily find a wireless broadband connection in all the places they already go as part of their daily lives. With more than 4,700 T-Mobile HotSpot locations nationwide, it's easy to find a HotSpot whether it's around town or around the country."

To use the T-Mobile HotSpot service at Starbucks, customers with a Wi-Fi-enabled notebook computer, Tablet PC or Pocket PC simply need to launch their Internet browser from within a participating Starbucks and log in. New customers need to activate a T-Mobile HotSpot account, which is available by signing up at www.t-mobile.com/hotspot or by launching their browser in a participating Starbucks location. New customers can try the service for free as part of a limited time offer available at any participating Starbucks location by using a complimentary T-Mobile HotSpot DayPass, which is available in an in-store brochure. Additional terms and conditions apply. T-Mobile offers several pricing plans including DayPass, pay-as-you-go, month-to-month and annual subscription plans. T-Mobile customers can add month-to-month subscriptions to their wireless voice or GPRS data bill at a 50 percent discount off regular pricing.