Peet's Coffee & Tea, Inc. Announces New Licensing and Supply Agreement with Stanford University's Residential & Dining Enterprises

EMERYVILLE, Calif. & STANFORD, Calif.--()--Sept. 22, 2003--

  Partnership Marks First Full Service Peet's Store on a University Campus  

Peet's Coffee & Tea, Inc. (NASDAQ:PEET), the leading super-premium specialty coffee roaster and marketer, and Stanford University's Residential & Dining Enterprises (R&DE) today announced a new partnership featuring the first full-service, Peet's Coffee & Tea store on a university campus, within the newly constructed James H. Clark Center. Managed by Stanford Dining, a division of R&DE, Peet's products will also be proudly brewed and offered in non-licensed venues across campus, including select Stanford cafes, Tresidder Memorial Union, The Cafe at the Arrillaga Alumni Center and catering services for executive dining and conferences.

"The explosive growth of the specialty coffee market really speaks to the fact that consumers are more educated and discerning about what they eat and drink today, and this affects all aspects of foodservice dining," said Nadeem Siddiqui, Executive Director, Stanford Dining. "Trends, such as these, challenge us to continually enhance our offerings, presentation and service, and to seek out the best products available, like Peet's, which embodies the highest standard of the specialty coffee and tea industry."

Under the licensed store concept, the Clark Center location will utilize Peet's high-quality and sophisticated retail design, tailored to the property's specifications. As part of the program, it will offer a select line of Peet's fresh, deep-roasted coffees and hand-selected teas that are specially packaged and dated to ensure the freshest product available for home or office use. Additionally, through Stanford Dining, the store will brew Peet's coffee and tea to exacting standards and present Peet's unique proprietary beverages and drinks.

"Peet's is very excited to be partnering with Stanford University's Residential & Dining Enterprises, an award-winning organization committed to providing the highest quality and creative cuisine," said Bill Lilla, executive vice president, Peet's Coffee & Tea, Inc. "Together, we look forward to meeting the growing demand for Peet's distinctively fresh, deep-roasted coffees and hand-selected specialty teas on the Stanford campus, and to making Peet's an integral part of the campus community."

"Stanford University's Residential & Dining Enterprises' vision is to be the best in the business by providing cutting edge concepts to our customers. We are very pleased to be partnering with Peet's Coffee & Tea, the true leader in the specialty coffee and tea industry with an unsurpassed reputation for quality and customer satisfaction," said Shirley Everett, Associate Vice Provost of Residential & Dining Enterprises. "As a Bay Area favorite, Stanford students, faculty and staff requested Peet's, and with this partnership we are now able to make it possible, and convenient, for them to enjoy a great cup of Peet's coffee or tea, right here on campus."

About Peet's Coffee & Tea, Inc.

Founded in Berkeley, Calif. in 1966, Peet's Coffee & Tea, Inc. is a specialty coffee roaster and marketer of fresh, deep-roasted whole bean coffee for home and office enjoyment. Peet's fresh-roasted coffee, hand-selected tea and related items are sold in several distribution channels including specialty grocery and gourmet food stores, online and mail order, office and restaurant accounts and 72 company-owned stores in six states. Peet's is committed to strategically growing its business and to maintaining a unique culture and focus on customer satisfaction. For information about Peet's Coffee & Tea, Inc., visit www.peets.com or call 1-800-999-2132. Peet's Coffee & Tea, Inc. shares are traded under the symbol PEET.

About Stanford University's Residential & Dining Enterprises

Stanford University's Residential & Dining Enterprises (R&DE) is a not-for-profit, University-managed auxiliary service led by Shirley Everett, Associate Vice Provost. R&DE's purpose is to support the academic mission of Stanford University by being the best in the business -- providing the highest quality food and services to students and the Stanford community in a fiscally responsible manner. R&DE is comprised of the Office of the Associate Vice Provost, Student Housing and Housing Assignment Services which annually houses over 12,000 undergraduate, graduate and summer students, Stanford Dining, Conference Services which hosts over 18,000 guests at more than 200 summer conferences, and Administrative Services (includes Information Systems, Human Resources, Finance, and Marketing and Business Support).

Stanford Dining's nationally-recognized, award-winning food service program leads the industry by providing highest quality, nutritious food in clean, safe and contemporary environments. Stanford Dining serves over 12,000 meals daily to over 26,000 students, faculty, staff and guests in over 32 dining rooms on campus. Stanford Dining operates continually expanding and evolving residential dining, retail, catering, campus vending, athletic concession and executive service operations for Stanford University.

This press release contains statements that are not based on historical fact and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including those relating to estimate earnings per share and net revenues for the fourth quarter of 2002 and for the full year 2003. Because of the uncertainties inherent in these forward-looking statements, the Company's actual results could differ materially from those set forth in forward-looking statements. The Company's estimates regarding its operations and financial results are based on currently available operating, financial and competitive information. Actual future results and trends may differ materially depending on a variety of factors including but not limited to, risks arising from accounting adjustments; the Company's ability to implement its business strategy, attract and retain customers, and obtain and expand its market presence in new geographic regions; the availability and cost of high quality Arabica coffee beans; consumers' tastes and preferences; and competition in its market as well as other risk factors as described more fully in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 30, 2002.

Contacts

Stanford University's Residential & Dining Enterprises
Melissa Crismon Steinbeck, 650-725-9915
mmcs@stanford.edu
or
Weber Shandwick
Julie Kim, 415-248-3419
jkim@webershandwick.com

Contacts

Stanford University's Residential & Dining Enterprises
Melissa Crismon Steinbeck, 650-725-9915
mmcs@stanford.edu
or
Weber Shandwick
Julie Kim, 415-248-3419
jkim@webershandwick.com