Starbucks Honors Chief Executive Orin Smith by Establishing the Company's First-Ever Scholarship Program at the University of Washington

Business Wire, Feb 9, 2005

SEATTLE -- Commitment of $500,000 Will Provide Hope and Opportunity to Students

Starbucks Coffee Company (Nasdaq:SBUX) today announced it has established the Orin C. Smith Scholarship program for sons and daughters of Starbucks partners (employees) attending the University of Washington. The announcement was made at Starbucks Annual Meeting of Shareholders at Seattle's Marion Oliver McCaw Hall.

"We are thrilled to establish the Orin C. Smith Scholarship at the University of Washington in appreciation of Orin's numerous contributions to Starbucks," said Howard Schultz, Starbucks chairman. "Orin's professional and personal commitment to Starbucks over the last 15 years has had a profound and long-lasting effect that has helped Starbucks become one of the most respected global brands. We could not think of a better way to celebrate Orin's legacy."

"Orin's passion and respect for people and coffee is a true reflection of Starbucks culture, mission and guiding principles," continued Schultz. "This scholarship program is an expression of our gratitude that will live on through our partners and their families for years to come."

A first for Starbucks, the Orin C. Smith Scholarship program will award two $25,000 scholarships each year, for 10 years, beginning in the academic year of Fall 2005 -- 2006. The scholarships will be open to University of Washington undergraduates who are sons and daughters of Starbucks employees and will cover the students' expenses such as tuition, books and fees.

"I am deeply honored to have a scholarship program in my name at the University of Washington, my undergraduate alma mater, and want to extend a heartfelt and very personal thank you to Howard Schultz, my colleagues and Starbucks partners worldwide," said Orin Smith, Starbucks president and ceo. "For the last 15 years, I have had one of the most incredible journeys business has to offer and it has enriched my life in countless ways."

Smith adds, "I continue to be inspired by the passion and commitment that our people have for this company, our customers, our coffee and one another, all of which make Starbucks such a valued and enduring company. Our people have inspired me and enriched my own life beyond measure; I am thrilled that through this scholarship we can give back to our people and their families for years to come."

When Smith joined Starbucks in 1990, the Company had 45 stores in the U.S. and Canada, with revenues of $35 million. During his five years as chief executive officer, Starbucks increased store count from 2,498 with annual total net revenues of $1.7 billion at fiscal year end 1999 to nearly 9,000 locations with more than $5 billion in annual total net revenues today.

Smith serves on several nonprofit boards in the Seattle area, including the Advisory Board for the University of Washington School of Business and the University of Washington Medicine Board of Directors. He also serves on the board of directors of Conservation International, a global nonprofit organization, as well as serving on the board of directors for Nike, Inc. Smith holds a BA from the University of Washington and an MBA from Harvard Business School.

Annual Meeting B-Roll Footage

Starbucks Corporation's Annual Meeting b-roll footage will be available for download at IA-5, Transponder 05 (C-Band), Downlink Frequency: 3800MHz Vertical, Audio: 6.20/6.80 on Wednesday, February 9, from 9:30 -- 9:45 p.m. EST and Thursday, February 10, from 11:00 -- 11:15 a.m. EST.

About Starbucks

Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with approximately 9,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. In addition to its retail operations, the Company produces and sells bottled Frappuccino(R) coffee drinks, Starbucks DoubleShot(R) coffee drink, and a line of superpremium ice creams through its joint venture partnerships. The Company's brand portfolio provides a wide variety of consumer products. Tazo Tea's line of innovative superpremium teas and Hear Music's exceptional compact discs enhance the Starbucks Experience through best-of-class products. The Seattle's Best Coffee(R) and Torrefazione Italia(R) Coffee brands enable Starbucks to appeal to a broader consumer base by offering an alternative variety of coffee flavor profiles.