Coffee Holding Co., Inc. Reports First Quarter Earnings

Business Wire, March 14, 2008

BROOKLYN, N.Y. -- Coffee Holding Co., Inc. (AMEX: JVA) today announced its operating results for the quarter ended January 31, 2008. In this release, the Company:

* Reports net sales of $14,962,541 for the three months ended January 31, 2008;

* Reports sales growth of 18.4% for the three months ended January 31, 2008 compared to the three months ended January 31, 2007;

* Reports net income of $182,265 for the three months ended January 31, 2008; and

* Reports net income of $0.03 per share (basic and diluted) for the three months ended January 31, 2008.

Net sales totaled $14,962,541 for the three months ended January 31, 2008, an increase of $2,327,429, or 18.4%, from $12,635,112 for the three months ended January 31, 2007. The increase in net sales reflects both increased amounts of green coffee and private label coffee sold as well as increased sales prices compared to the first quarter of fiscal 2007.

Net income decreased by $127,419 to $182,265 for the three months ended January 31, 2008 from $309,684 for the three months ended January 31, 2007. The decrease in net income primarily resulted from increased cost of sales during the quarter that outpaced our increased net sales for the quarter. Increased cost of sales was also partially offset by decreased operating expenses and decreased other expense. Net income equaled $0.03 per share (basic and diluted) for the three months ended January 31, 2008 compared to $0.06 per share (basic and diluted) for the three months ended January 31, 2007.

"Our first quarter's results were in line with our expectations, as we were able to achieve an acceptable level of profitability on increased revenues," said Andrew Gordon, President and Chief Executive Officer. "However, I believe that recent events in the outside commodity markets may adversely affect our bottom line in the near term. During the month of February, prices in all commodities, including Arabica and Robusta coffee, soared over 20% in a few weeks time. These price appreciations, which are not only inflationary but 'bubble like' in their current forms, have negatively impacted our profit margins for a significant portion of our business. While we have been able to obtain large price concessions from most of our customers, these price increases will not have a positive impact until late in our second quarter at the earliest. In addition, the volatility in the markets has prevented us from successfully implementing our hedging strategies. Until this volatility abates, I believe our ability to execute our past strategies will be hampered."

"Whether current conditions prove to be an aberration or a long term event we are not certain, but in light of these events we have begun the process of closely evaluating our overall business with an eye towards taking any steps necessary to maintain acceptable levels of profitability. Our balance sheet remains strong and we will continue to build on our core business base. I believe that our horizontally integrated business model will ultimately ensure our long term success in almost any business, economic or hostile market environment," noted Mr. Gordon.

About Coffee Holding

Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding has been a family operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. The Company's private label and branded coffee products are sold through the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi unit retail customers.

Any statements that are not historical facts contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.

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