Green Mountain Coffee, Inc. (NASDAQ: GMCR) yesterday reported another strong quarter, with a 24.5% increase in sales and a 97.2% increase in net income for its fiscal second quarter of 2001.

Net sales increased 24.5% to $22,741,000 for the twelve weeks ended April 14, 2001, compared to $18,259,000 for the twelve weeks ended April 8, 2000. Total coffee pounds sold for the quarter increased 22.3% year-over-year to 2,913,000 pounds.

Green Mountain Coffee's gross profit for the quarter was 42.6% of sales compared to 39.8% of sales in the year ago period, as the Company continued to benefit from brand strength and low green coffee commodity prices. The Company held operating expenses as a percentage of sales steady, at 32.9%, excluding a prior year loss on abandonment of fixed assets. Operating margins improved to 9.7% of sales, compared to 6.1% of sales a year ago. The Company achieved a 97.2% year-over-year increase in net income to $1,213,000, and earnings per share rose from $0.09 a year ago, to $0.17 for the twelve weeks ended April 14, 2001.

The area of the highest volume increase in coffee pounds sold was the convenience store channel, with second quarter year-over-year growth of 37.1%, due in part to the initial ramp-up in sales to the distributor McLane Company, Inc. under the Company's previously announced new agreement with Exxon Mobil Corporation. The office coffee services channel experienced growth of 26.8% year-over-year during the quarter due primarily to the continued strength of the single-serve K-cup® coffee packages for the Keurig® brewing system. Growth in the supermarket channel also was strong at 16.5% year-over-year.

For the twenty-eight weeks ended April 14, 2001, Green Mountain Coffee sales were up 24.8% to $53,646,000, compared to $43,001,000 for the twenty-eight weeks ended April 8, 2000. The Company realized a 19.1% increase in coffee pounds sold for this same period. Net income increased 58.4% to $3,033,000, or $0.43 per share, for the current period, compared to $1,915,000, or $0.27 per share, for the twenty-eight weeks ended April 8, 2000.

Robert P. Stiller, Chairman, President, and Chief Executive Officer of Green Mountain Coffee said, "As we prepare to celebrate our twentieth anniversary as a company, and tenth anniversary of supporting social and environmental issues, I am delighted to be reporting these strong results to our stockholders. At Green Mountain Coffee, we are focused on superior execution. Whether it is outstanding coffee, outstanding customer service, outstanding corporate citizenship, or outstanding financial results, the employees throughout Green Mountain Coffee are doing their part to make it happen. The opportunities for the brand and the business, as we take advantage of new technologies, new partnerships, and new geographic markets, are very exciting. At the same time, our successful growth expands our ability to improve the environment and make our local and global communities better, which also is very exciting. I want to thank all our employees, our loyal customers, and the consumers who love our coffee, for making it possible."

Robert D. Britt, Chief Financial Officer, elaborated upon the Company's impressive second quarter results, saying, "This past quarter we essentially doubled our earnings over the comparable prior year quarter. Our cash flow also was very strong with earnings before interest, taxes, depreciation and amortization (EBITDA) increasing 69% to $3.05 million from $1.8 million in the year- ago quarter. Based on our strong balance sheet and recent Federal Reserve actions, our variable rate borrowings under our revolving line of credit have now dropped well below 6%, supporting our efforts to grow earnings faster than sales, and continue to build stockholder value."

The Company also reported that between April 19 and May 11, 2001, the trustee for its Employee Stock Ownership Trust purchased 25,800 shares of the Company's stock at an average price of $25.15 per share. Although the Employee Stock Ownership Trust was created by the Board of Directors of Green Mountain Coffee to increase employee ownership in the Company, the Trustee acts independently of the Board and management in making these open market purchases.

Green Mountain Coffee, Inc. is a leader in the specialty coffee industry and has been recognized by Forbes Magazine as one of the "200 Best Small Companies in America." The Company roasts high-quality arabica coffees and offers over 60 varieties including single-origin, estate, certified organic, Fair Trade, proprietary blends, and flavored coffees that it sells under the Green Mountain Coffee Roasters® brand.

The majority of Green Mountain Coffee's revenue is derived from its wholesale operation that serves supermarkets, convenience stores, offices, and other locations where fine coffees are sold. Green Mountain Coffee also operates a direct mail operation and e-commerce Web site (http://www.GreenMountainCoffee.com) with secure on-line ordering for customers from its Waterbury, Vermont headquarters. The Company seeks to make the world a better place for present and future generations by operating in an environmentally and socially conscientious manner.

Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those set forth in forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, fluctuations in availability and cost of green coffee, the impact of a weaker economy, competition and other business conditions in the coffee industry and more generally in the food and beverage industry, the impact of the loss of one or more major customers, delays in the timing of adding new locations with existing customers, the Company's level of success in continuing to attract new customers, variances from budgeted sales mix and growth rate, weather and special or unusual events, as well as other risk factors as described more fully in the Company's filings with the Securities and Exchange Commission.

Green Mountain Coffee urges coffee lovers, investors and everyone else who is interested in the Company and its news to sign up for automatic e-mail receipt of its press releases. To take advantage of this free service, go to the investor services section of the Company's Web site, which can be accessed directly at http://GreenMountainCoffee.com/scripts/investor.asp. Next, click on "News Releases via E-mail" to sign up.

                      GREEN MOUNTAIN COFFEE, INC.
                 Consolidated Statement of Operations
             (Dollars in thousands except per share data)
                               Unaudited

                       Twelve       Twelve   Twenty-eight Twenty-eight
                        weeks        weeks      weeks        weeks
                        ended        ended      ended        ended
                       4/14/01       4/8/00    4/14/01       4/8/00
Net sales:
 Wholesale          $   21,915   $   17,594   $   50,950   $   40,808
 Consumer direct           826          665        2,696        2,193
Net sales               22,741       18,259       53,646       43,001

Cost of sales           13,061       10,990       31,445       25,686

  Gross profit           9,680        7,269       22,201       17,315

Selling and
 operating expenses      5,756        4,642       13,152       10,691
General and
 administrative
 expenses                1,721        1,372        3,608        3,056
Loss on abandonment
 of fixed assets          --            135         --            135

  Operating income       2,203        1,120        5,441        3,433

Other income                14           14           27           10
Interest expense          (146)        (107)        (344)        (248)

Income before
 income taxes            2,071        1,027        5,124        3,195

Income tax expense        (858)        (412)      (2,091)      (1,280)

Net income          $    1,213   $      615   $    3,033   $    1,915

Basic income
 per share:
Weighted average
 shares outstanding  6,353,999    6,719,956    6,302,420    6,838,890
Net income          $     0.19   $     0.09   $     0.48   $     0.28

Diluted income
 per share:
Weighted average
 shares outstanding  7,178,428    7,093,768    7,118,183    7,088,950
Net income          $     0.17   $     0.09   $     0.43   $     0.27




                      GREEN MOUNTAIN COFFEE, INC.
                      Consolidated Balance Sheet
                        (Dollars in thousands)

                                         April 14,  September 30,
                                           2001         2000
                                        (Unaudited)
  Assets
Current assets:
 Cash and cash equivalents               $  1,258    $    559
 Receivables, less allowances
  of $436 at April 14, 2001
  and $320 at September 30, 2000            9,852       8,454
 Inventories                                4,974       5,350
 Other current assets                       1,300         510
 Deferred income taxes, net                   234         182

 Total current assets                      17,618      15,055

Fixed assets, net                          11,831      11,274
Other long-term assets                        292         348
Deferred income taxes, net                    343         497

                                         $ 30,084    $ 27,174

  Liabilities and Stockholders' Equity
Current liabilities:
 Current portion of
  long-term debt                         $    160    $    135
 Accounts payable                           6,184       6,125
 Accrued compensation costs                 1,566       1,381
 Accrued expenses                           1,182         614
 Accrued losses and
  other costs of discontinued
  operations, net                             119         119

  Total current liabilities                 9,211       8,374

Long-term debt                                272         283

Long-term line of credit                    6,000       8,500

Commitments and contingencies

Stockholders' equity:
 Common stock, $0.10 par value:
 Authorized - 10,000,000 shares;
  Issued - 7,544,602 and 7,342,010
  shares at April 14, 2001 and
  September 30, 2000, respectively            754         734
 Additional paid-in capital                15,186      13,534
 Retained earnings                          5,811       2,778
 Other comprehensive (loss)                  (121)       --
 Treasury shares, at cost -
  1,137,506 shares at
  April 14, 2001 and
  September 30, 2000                       (7,029)     (7,029)

 Total stockholders' equity                14,601      10,017

                                         $ 30,084    $ 27,174




                      GREEN MOUNTAIN COFFEE, INC.
           Total Company Coffee Pounds Sold by Sales Channel
              (As a Percent of Total Coffee Pounds Sold)
                               Unaudited

Channel                     Q2           Q2
                          12 wks.      12 wks.       Q2        Q2
                           ended        ended      Y/Y lb.  % Y/Y lb.
                          4/14/01       4/8/00    Increase  Increase

Supermarkets                22.3%        23.4%      92,000     16.5%

Convenience Stores          30.7%        27.4%     242,000     37.1%

Other Retail                 1.8%         2.3%      (4,000)   (7.3)%

Restaurants                  8.7%        11.6%     (24,000)   (8.7)%

Office Coffee Service       26.0%        25.2%     160,000     26.8%
Distributors

Other Food Service           8.5%         8.4%      46,000     22.9%

Consumer Direct              2.0%         1.7%      19,000     47.5%

Totals                  2,913,000    2,382,000     531,000     22.3%

Note 1: Certain prior year customer channel classifications were
reclassified to conform to current year classifications.

Note 2: Consumer Direct is comprised of direct mail and e-commerce Web
site sales to consumers.



                      GREEN MOUNTAIN COFFEE, INC.
           Total Company Coffee Pounds Sold by Sales Channel
              (As a Percent of Total Coffee Pounds Sold)
                               Unaudited

Channel                    Q2 YTD       Q2 YTD      Q2         Q2
                           28 wks.      28 wks.     YTD        YTD
                           ended        ended      Y/Y lb.  % Y/Y lb.
                          4/14/01       4/8/00    Increase  Increase

Supermarkets                24.0%        24.3%     241,000    17.6%

Convenience Stores          28.4%        27.1%     380,000    25.0%

Other Retail                 2.0%         2.5%      (1,000)  (0.7)%

Restaurants                  9.3%        11.5%     (26,000)  (4.0)%

Office Coffee Service       25.3%        22.8%     407,000    31.7%
Distributors

Other Food Service           8.5%         9.2%      50,000     9.7%

Consumer Direct              2.5%         2.6%      22,000    15.3%

Totals                  6,697,000    5,624,000   1,073,000    19.1%

Note 1: Certain prior year customer channel classifications were
reclassified to conform to current year classifications.

Note 2: Consumer Direct is comprised of direct mail and e-commerce Web
site sales to consumers.



          Wholesale Coffee Pounds Sold, by Geographic Region
        (As a Percentage of Total Wholesale Coffee Pounds Sold)
                               Unaudited


                           Q2            Q2
                         12 wks        12 wks       Q2         Q2
                         ended          ended     Y/Y lb.    % Y/Y lb.
                        4/14/01        4/8/00    Increase    Increase

Northern New England      29.3%         32.1%      84,000       11.2%

Southern New England      24.1%         24.2%     122,000       21.5%

Mid-Atlantic              21.5%         21.6%     106,000       20.9%

South Atlantic             8.7%          7.4%      75,000       43.4%

Midwest                    2.2%          2.8%      (1,000)     (1.5)%

South Central & West       5.9%          2.3%     115,000      213.0%

Multi-Regional             7.2%          8.4%       8,000        4.1%

International              1.1%          1.2%       3,000       10.7%

Totals                2,854,000     2,342,000     512,000       21.9%

Note 1: Excludes coffee pounds sold in the Consumer Direct channel.

Note 2: The allocation by region of coffee pounds sold to certain
McLane Company, Inc. warehouses for distribution to ExxonMobil
convenience stores has been estimated. This information will be
adjusted in future quarters once the detailed sales data to ExxonMobil
locations is made available to GMCR.



          Wholesale Coffee Pounds Sold, by Geographic Region
        (As a Percentage of Total Wholesale Coffee Pounds Sold)
                               Unaudited



                         Q2 YTD        Q2 YTD     Q2 YTD    Q2 YTD
                      28 wks ended  28 wks ended   Y/Y lb.  % Y/Y lb.
                        4/14/01        4/8/00    Increase   Increase

Northern New England      30.8%         33.5%     174,000        9.5%

Southern New England      24.8%         24.3%     286,000       21.5%

Mid-Atlantic              21.9%         21.3%     265,000       22.7%

South Atlantic             8.0%          6.5%     161,000       45.0%

Midwest                    2.5%          2.5%      26,000       19.3%

South Central & West       4.1%          2.2%     153,000      130.8%

Multi-Regional             6.8%          8.7%     (35,000)     (7.3)%

International              1.1%          1.0%      21,000       38.9%

Totals                6,531,000     5,480,000   1,051,000       19.2%

Note 1: Excludes coffee pounds sold in the Consumer Direct channel.

Note 2: The allocation by region of coffee pounds sold to certain
McLane Company, Inc. warehouses for distribution to ExxonMobil
convenience stores has been estimated. This information will be
adjusted in future quarters once the detailed sales data to ExxonMobil
locations is made available to GMCR.