Starbucks 'Hear Music Media Bar' Makes Its Debut in Austin; New CD Burning Service to Roll Out in 30 Austin Starbucks Locations

Business Wire, Oct 28, 2004

AUSTIN, Texas -- Starbucks Coffee Company (Nasdaq:SBUX) today celebrated the rollout of its new CD burning service in Austin. Starbucks Hear Music(TM) media bar, an innovative service, powered by HP (NYSE, Nasdaq: HPQ) technology, allows Starbucks customers to create personalized CD compilations and burn full-length albums from a vast digital library of songs. Thirty stores in Austin will feature the Hear Music media bar, at which customers can also explore their musical interests through exclusive Hear Music editorial features and recommendations. Starbucks and HP executives helped to launch the service today during a special celebration at the 5th & Lamar Starbucks location in downtown Austin.

"Starbucks has a long-standing history of providing innovative experiences for consumers, and the Hear Music media bar is no exception," said Ken Lombard, president, Starbucks Entertainment. "The Hear Music media bar will create unique opportunities for Austin residents and visitors to discover and acquire a wide array of great music in a fun and customized way."

Austin Starbucks customers will be able to interact with the Hear Music media bar at self-service screens placed throughout the 30 participating stores. Using a stylus pen on a touch screen, customers can burn existing albums or create custom CD compilations, song by song, from an initial catalog of more than 150,000 hand-picked songs covering a wide array of genres; select personalized album artwork and titles for custom CDs; listen to full-length songs and albums before purchasing; and pay for CD creations using a Starbucks Card or most credit cards, including the Starbucks Card Duetto(TM) Visa(R). Albums are offered at average retail prices, while custom CDs are available at the price of $8.99 for the first seven songs and $0.99 for each additional song.

As the leader in technology innovation and the preferred technology provider for both Starbucks corporate headquarters and its retail stores, HP and Starbucks together develop solutions that support and enhance the overall Starbucks Experience. The Hear Music media bar is powered by HP software, hardware and services, including HP Tablet PCs, workstations, printing technology, networking, and integration services that enable customers to use the innovative touch-screen interface to create and burn their own CD simply and easily.

In addition to the extensive catalog of songs, Starbucks plans to offer exclusive content to consumers through the Hear Music media bar. Upcoming exclusives include a Starbucks-sponsored live performance from Willie Nelson, who will headline a concert with opening act Milton Mapes, at Stubb's BBQ in Austin on November 14. Starbucks also collaborated with Rhino Records to secure exclusive distribution rights of live recordings from the recent Austin City Limits Festival, which featured many well known and emerging artists. Select audio tracks from these concerts will be available for burning exclusively at the Hear Music media bar and at the Starbucks Hear Music Coffeehouse in Santa Monica, CA, in the weeks following the launch of the service.

As a special show of support for local music programs, Starbucks will provide a $5,000 donation to the Texas Music Project (www.texasmusicproject.org), a statewide initiative founded by the Social Marketing Resource Center. The Texas Music Project's mission is to restore and strengthen music education in Texas schools by working with Texas artists and musicians to increase awareness and funding for music education.

Further demonstrating the impact that Starbucks is having on the music industry, the launch of the Hear Music media bar comes on the heels of the platinum selling Ray Charles Genius Loves Company CD, which was produced and distributed through a collaboration between Starbucks and Concord Records; the launch of Starbucks "Hear Music" Channel 75 on XM Satellite Radio; the introduction of the new Starbucks Hear Music Coffeehouse retail concept; and the recent release of Emmylou Harris Artist's Choice(TM) compilation CD. Starbucks anticipates the release of Norah Jones Artist's Choice(TM) compilation CD in early November.

Starbucks expects to extend the Hear Music media bar to other Starbucks locations in 2005. For more information on the Hear Music media bar and to find store locations in Austin, consumers can visit http://www.starbucks.com/hearmusic.> About Hear Music

Founded in 1990, and acquired by Starbucks Coffee Company in 1999, Hear Music is dedicated to helping people discover great music. Not a traditional record label or distributor, Hear Music, with a catalog of more than 100 CD compilations, handpicks songs from new and classic records to create CDs that help people discover music they might not hear otherwise. Hear Music creates CDs and music programming for Starbucks coffeehouses worldwide, as well as for the newly launched 24-hour Starbucks "Hear Music" Channel 75 on XM Satellite Radio. Hear Music operates innovative retail stores in California including the Hear Music Coffeehouse in Santa Monica. Hear Music CDs are featured at Hear Music and Starbucks retail locations, as well as at www.hearmusic.com.