Coffee Holding Co., Inc. Reports Second Quarter and Six Month Results

Market Wire, June, 2008

Coffee Holding Co., Inc. (AMEX: JVA) today announced its operating results for the three and six months ended April 30, 2008. In this release, the Company:

--  Reports net sales of $18,169,441 for the quarter and $33,131,982 for
    the six months ended April 30, 2008;

--  Reports sales growth of 28.0% for the quarter and 23.5% for the six
    months ended April 30, 2008 compared to the three and six month periods
    ended April 30, 2007; and

--  Reports net losses of $2,044,178 for the quarter and $1,861,913 for
    the six months ended April 30, 2008.
    

Net sales totaled $18,169,441 for the three months ended April 30, 2008, an increase of $3,975,068, or 28.0%, from $14,194,373 for the three months ended April 30, 2007. Net sales totaled $33,131,982 for the six months ended April 30, 2008, an increase of $6,302,497, or 23.5%, from $26,829,485 for the six months ended April 30, 2007. The increase in net sales for each period reflects increased amounts of green coffee, branded coffee and private label coffee sold as well as increased sales prices compared to the three and six month periods of 2007.

The Company had a net loss of $2,044,178, or $0.37 per share (basic and diluted), for the three months ended April 30, 2008 compared to net income of $338,888, or $0.06 per share (basic and diluted), for the three months ended April 30, 2007. For the six months ended April 30, 2008, the Company had a net loss of $1,861,913, or $0.34 per share (basic and diluted), compared to net income of $648,592, or $0.12 per share (basic and diluted), for the 2007 period. The losses for the three and six month periods ended April 30, 2008 were due to sharp increases in cost of sales that resulted from higher coffee prices and losses on options and futures contracts. As a result, cost of sales exceeded net sales for the quarter ended April 30, 2008 and were 99.4% of net sales for the six months ended April 30, 2008. Net losses on options and futures contracts equaled $2,082,679 for the second quarter of fiscal 2008 and $1,489,236 for the six months ended April 30, 2008.

Commenting on the Company's losses on options and futures contracts, President and Chief Executive Officer Andrew Gordon said, "The increased investment by index funds in crop futures during the first few months of 2008 placed a major financial strain on commercial participants in many markets, including coffee. The price spike and subsequent market crash saw coffee prices surge over $0.35 (26%) and then collapse within a five week period. This spike prevented many companies, including ourselves, from adequately managing risk during this time. We were unable to defend our hedge and pricing positions due to the excess speculation involved in our market. The end result was a significant loss on our hedge positions as well as an inadequately priced physical coffee position. Fortunately, both our hedging losses as well as high priced physicals have been washed through our income statement during this period."

"Going forward, we anticipate a return to 'business as usual' for our company," said Mr. Gordon. "We continue to see our revenues increase annually and we have a record of profitability during ten of the last twelve quarters since going public. Our balance sheet remains strong even after having paid out a $0.28 per share cash dividend in February as well as the extraordinary loss incurred during this past fiscal period. We stand behind our stock and believe its current market price is by no means representative of its true value. For that reason, we will continue as a company to buy our stock back as part of our publicly announced share repurchase program at every available opportunity."

"Finally, our much anticipated rollout of Entenmann's branded coffee products occurred during this last quarter. Although we experienced significant onetime costs in packaging development and slotting (product placement) in conjunction with the rollout, those costs were neither excessive nor unanticipated. More importantly, the initial results both in sales and consumer feedback on the product line are extremely positive and give us a strong indication as to how successful Entenmann's coffee will be in the marketplace over the next several years."

"We realize the results for this period obviously are unacceptable to both our management and our shareholder base," concluded Mr. Gordon. "In our 38 years of existence, we have never underperformed and incurred losses of this magnitude. We firmly believe we will never see a repeat of this performance again. We look forward to a fresh start this upcoming quarter."

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 throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi unit retail customers.