Diedrich Coffee Inc. (Nasdaq:DDRX) announced yesterday that it closed a transaction on May 15, 2001, to sell and franchise three company-owned Diedrich Coffee brand Coffeehouses located in Houston to Magna Cum Latte Inc., a Texas Corporation. Additionally, Magna Cum Latte purchased the rights to develop six new Diedrich Coffee locations in a defined area within the Houston market. Proceeds from this transaction were approximately $1 million.