Sep 25, 2003

Peet's Coffee & Tea, Inc. Opens Its 72nd Retail Store In Austin

Marks Company's First Store In Texas

EMERYVILLE, Calif. - September 25, 2003 - Peet's Coffee & Tea, Inc. (NASDAQ: PEET), a specialty coffee roaster and marketer, today announced the opening of its 72nd retail store, located in Austin, Texas, just outside the University of Texas at Austin. This marks the eighth Peet's store to open this year.

"We are very pleased to be opening our first stand-alone Peet's store in Austin," said Patrick O'Dea, president and chief executive officer, Peet's Coffee & Tea, Inc. "Building on the strong existing customer base in our mail order business, we believe there is great opportunity in Austin to provide coffee consumers with our distinctive offering -- fresh, artisan-roasted whole bean coffee for home and office consumption."

Only Peet's coffees are hand-roasted daily in small batches by skilled artisans using Peet's Deep-RoastingTM style and then shipped within 24 hours for ultimate freshness, resulting in Peet's distinctive full-bodied flavor. Much like a butcher shop or produce stand that prides itself on offering the freshest and highest quality meats or produce, each Peet's store is a fresh market for the highest quality whole bean coffees and hand-selected teas.

Like all Peet's retail stores, the new Austin store features a dedicated bean counter where knowledgeable staff, also known as "Peetniks," hand-scoop and individually bag the freshest beans to each customer's request. Each staff person is extensively trained as a coffee and tea expert to help customers select the best coffee or tea to suit their needs.

Peet's retail stores also offer a full-service bar where Peetniks produce hand-crafted beverages made to Peet's meticulous standards and made fresh with each order. The Peet's bar allows customers to sample properly roasted beans and specialty teas at their absolute best.


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. For information about Peet's Coffee & Tea, Inc. visit or call 1-800-999-2132.

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. In particular, the Company's expectations regarding store openings and availability of locations for sites in 2002 are "forward-looking statements." 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. Actual future store openings depend on a variety of factors including but not limited to the completion of the development projects where the planned stores are to be located, the availability of high quality retail inventory for additional store locations, the Company's ability to identify appropriate locations for future stores and to obtain leases for such stores on satisfactory terms, and the Company's operations and financial results in general. Actual results and trends may differ materially depending on a variety of factors including but not limited to, its 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 our market as well as other risk factors as described more fully in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 30, 2002.