Starbucks Announces Relationship With William Morris Agency; As the Coffee Retailer Transforms Traditional Music Distribution and Motion Picture Marketing, Talent Agency Enlisted to Identify Projects

Business Wire, May 1, 2006

SEATTLE & BEVERLY HILLS, Calif. -- Starbucks (NASDAQ:SBUX) today announced a relationship with the William Morris Agency (WMA) in which WMA will identify music, film and book projects for Starbucks to consider for marketing and distribution in its stores. The relationship signals the significant interest in Starbucks as a partner to labels and studios and provides Starbucks the opportunity to add value to its entertainment strategy and gain access to significantly more content for consideration.

With its national footprint of stores, strong passion and trust from its huge and diverse customer base, and proven track record with word-of-mouth marketing, Starbucks has already demonstrated success in reconnecting its millions of customers with new and unique music options, from the GRAMMY Award winning Ray Charles, to Bob Dylan, Herbie Hancock and new artist Sonya Kitchell who charted with her first ever album co-released and marketed by Starbucks. More recently, Starbucks provided its customers with a unique opportunity to discover Akeelah and the Bee, an inspirational new film which opened April 28, co-presented by Lionsgate, 2929 Entertainment and Starbucks Entertainment.

"While we are a coffee company at heart, Starbucks provides much more than the best cup of coffee -- we offer a community gathering place where people come together to connect and discover new things," said Howard Schultz, Starbucks chairman. "Our customers have given us permission to be part of their entertainment discovery through the trust they have of the brand and our editorial voice introducing them to new music and movies. We believe Starbucks is a very powerful distribution channel, which is why we are so pleased to be working with the largest diversified talent and literacy agency in the world, William Morris Agency, to bring our customers even more forms of entertainment."

"Since Starbucks shook up the music industry when it launched its focused music strategy in 2004 we recognized the important role that they would have on entertainment marketing and distribution going forward," said William Morris CEO, Jim Wiatt. "They are a company that has gained the trust and respect of the millions of customers who walk through their doors each week; and they are a company dedicated to innovation and altruism. As they extend their reach into broader forms of entertainment, we couldn't be more pleased and honored to be working with Starbucks."

"We are extremely pleased about the response that the industry has had in regards to our entertainment strategy. We look forward to working very closely with the William Morris Agency, identifying and bringing forward projects to introduce to our customers that truly reflect our brand values and meet the high quality standard they have come to expect from us," said Ken Lombard, president, Starbucks Entertainment. "We are extremely excited about the value that William Morris is providing to our strategy and more importantly bringing quality entertainment choices to our customers."

Added WMA President, Dave Wirtschafter: "We are incredibly proud to partner with one of the most respected brands in the world. And while Starbucks has already gained a strong foothold in the world of entertainment, we feel that with their existing market awareness and our ability to maximize their position, we can enhance an already formidable brand."

About Starbucks Entertainment

Starbucks Entertainment's first film offering follows a very successful year for the Company's music strategy. Starbucks Hear Music executed initiatives such as the co-production of the GRAMMY(R) award-winning Ray Charles Genius Loves Company album, as well as the exclusive offering of the ten year anniversary acoustic recording of Alanis Morissette's Jagged Little Pill. More recently Starbucks Hear Music co-produced and launched its first global CD release: Herbie Hancock's Possibilities, which is available simultaneously at Starbucks and traditional music retail worldwide, and which has been nominated for two GRAMMY(R)s, marking the second year in a row in which an album Starbucks Hear Music co-released has received multiple GRAMMY(R) nominations. Year one of Starbucks Hear Music's strategy also included co-releasing the first officially sanctioned, professionally produced version of Bob Dylan's rare, historic 1962 "Gaslight" sessions, another Starbucks exclusive, and the unveiling of the Hear Music(TM) Coffeehouses in Miami and San Antonio, which feature the next generation of the Hear Music(TM) media bars, enabling customers to burn a custom CD of their choice from a selection of more than one million digital tracks.

About Starbucks Coffee Company

Through the dedication of our passionate partners (employees), Starbucks Coffee Company has transformed the way people in 37 countries enjoy their coffee, one cup at a time. Starbucks is the premier purveyor of the finest coffee in the world, with more than 11,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering its customers the highest quality coffee and human connection through the Starbucks Experience, while striving to improve the social, environmental and economic well being of its partners, coffee farmers, countries of coffee origin, and the communities which it serves. Through Ethos Water, Starbucks demonstrates its long history of integrating a social conscience into all aspects of its business. The Company surprises and delights its customers by producing and selling bottled Starbucks Frappuccino(R) coffee drinks, Starbucks DoubleShot(R) espresso drinks and Starbucks(R) superpremium ice creams through its joint-venture partnerships, and Starbucks(TM) Coffee and Cream Liqueurs through a marketing and distribution agreement, in other convenient locations outside its retail operations. The Company's brand portfolio includes superpremium Tazo(R) teas, Starbucks Hear Music(TM) compact discs, Seattle's Best Coffee and Torrefazione Italia. These brands' unique and innovative personalities allow Starbucks to appeal to a broad consumer base.