Peabodys Coffee Inc., (OTCBB:PBDY) announced today that David A. Lyman has joined its board of directors. Mr. Lyman's appointment brings the total board membership to five following the July 7 announcement naming Cliff B. Young as President/CEO and director. The company's board now consists of Chairman, Todd Tkachuk, President/CEO, Cliff B. Young, former Burger King Chairman, Barry J. Gibbons, David A. Lyman, and Roman M. Kujath.

"The timing for joining Peabodys is critical," commented Mr. Lyman. "Interest is swinging back towards businesses with real sales and real people after a period of watching the new economy come and go. The time for a Peabodys breakthrough is right here - right now."

Mr. Lyman has extensive experience formerly holding senior positions with Capitol EMI Music, North American Van Lines ("NAVL"), Godfathers Pizza, Family Vision Center, and American Hospitality Concepts. From 1976 through 1983, he held various management positions at 3 different PepsiCo companies including NAVL, Pizza Hut, and Frito Lay. As V.P. of Human Resources at NAVL, his responsibilities included all domestic, Canadian, and foreign operations in both Germany and Singapore. He was a senior director of field personnel for Pizza Hut, where his responsibilities included all operating systems for Pizza Hut's domestic operations. At Family Vision Center, Mr. Lyman was the V.P. of Operations responsible for 170 retail optical outlets located within Wal-Marts, Sam's Clubs and Sears stores. Dr. Lyman received his Ph.D. in psychology from the University of Nebraska-Lincoln in 1974.

Director Barry Gibbons, former Burger King Chairman said, "Peabodys is on the verge of a growth breakthrough and it is vital that the right team is in place to deliver against our expectations. David's appointment is major piece of the jigsaw."

Peabodys Coffee, Inc. is a specialty coffee retailer who owns and operates 21 specialty coffee carts, kiosks, and a retail store located throughout California and Northern Nevada. The company's operating units are typically located in institutional settings such as universities, hospitals and corporate office buildings.

This release contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.