Starbucks Announces Plans for France; First Store Expected to Open in Paris in Early 2004

PARIS--(BUSINESS WIRE)--Sept. 25, 2003--Starbucks Coffee International, a wholly owned subsidiary of Starbucks Coffee Company (Nasdaq:SBUX), today announced that it has signed a joint venture agreement with Grupo Vips, a leading European food service and retail operator, to open Starbucks retail locations in France.

The first store is expected to open in Paris in early 2004, and the joint venture company, Starbucks Coffee France SAS, will be responsible for the day-to-day operations of the business.

“Since our relationship began in 2002, Grupo Vips has been an ideal partner for Starbucks”

"We look forward to sharing our passion for high quality coffee and our commitment to outstanding customer service with local customers," said Franck Esquerre, managing director, Starbucks Coffee France SAS. "Coupled with its strong reputation worldwide as a company that deeply cares for its people and the many communities where it does business, I believe that Starbucks will be a success in France."

Esquerre, with more than 20 years experience in the restaurant and beverage business, will provide strong leadership and direction for the French team in localizing and developing the Starbucks Experience for France.

"It is with utmost respect and admiration for the cafe society in France that we announce our entry into the market," said Howard Schultz, chairman, Starbucks Coffee Company. "Historically, French cafes have served as the 'third place' to authors, philosophers and artists. I am therefore confident that the Starbucks Experience will fit well into the French cafe tradition.

"We have been thinking of opening in France for a long time," said Schultz. "Since entering continental Europe two years ago, we have been very pleased with the enthusiastic reception we have received from our European customers. Over the past several years we have been disciplined in our growth throughout the continent and are now extremely pleased to enter the French market with Grupo Vips, our partner in Spain. We believe that leveraging partners across several territories results in a stronger, more relevant business."

Starbucks recently extended territories to existing partners in southern China, the Middle East, continental Europe, and has finalized a licensing agreement with its Taiwanese partner for expansion of territory to neighboring areas around Shanghai.

"Since our relationship began in 2002, Grupo Vips has been an ideal partner for Starbucks," continued Schultz. "In addition to its years of experience in the Spanish retail and restaurant business, Grupo Vips currently operates 16 successful Starbucks locations in Madrid and Barcelona. As a company whose values, vision, and enterprising spirit so closely mirror our own, I firmly believe that we are off to a great start in building a strong and enriching relationship with French customers by offering them the highest quality of coffee along with the Starbucks Experience."

Grupo Vips is the Spanish market leader in full service dining. The group operates several leading chains including the VIPS concept, (retail and restaurant), as well as Ginos, and Laene. The group also operates other international brands: T.G.I. Fridays', Bice (Madrid) and Starbucks since 2002. It also owns and operates many other established restaurants amongst which are the celebrated Iroco, Teatriz and El Bodegon.

Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world, with more than 7,000 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 Starbucks Experience and conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business.

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