Peet's Coffee & Tea, Inc. (Nasdaq:PEET), a specialty coffee roaster and marketer, yesterday announced that it expects to meet its planned second quarter revenue and exceed its planned earnings. The results reflect continued revenue and earnings growth in every distribution channel.

"We are pleased with our results this quarter and year-to-date. We expect that our second quarter results will mark the third consecutive quarter of excellent performance, despite unsettled economic conditions," said Christopher P. Mottern, president and chief executive officer of Peet's Coffee & Tea, Inc. "Demand for Peet's products remains strong in each of our business segments -- direct delivery, specialty sales and retail."

During the second quarter, Peet's introduced several new offerings to expand its product categories. In April, Peet's celebrated 35 years in the specialty coffee industry with the introduction of Anniversary Blend Coffee and Anniversary Blend Tea. The Company also introduced two rare first flush Darjeeling teas and a new special lot of Panama coffee from the Boquete region. In its retail stores, Peet's successfully introduced a new blended ice drink, The Swirl, to its summer menu. Another milestone achieved during the quarter was the opening of Peet's 60th retail store in Wellesley, Mass., expanding its presence in the Boston market.

Peet's specialty grocery program continued to grow, adding several new accounts that distribute fresh, roast-dated coffee from freestanding displays. During the quarter, the Company reached an agreement with Larry's Markets of Seattle, Wash. to operate Peet's Coffee Kiosks in each Larry's location.

Additionally, the Company announced several strategic partnerships. These include a wholesale agreement with La Brea Bakery of Van Nuys, Calif., an arrangement with the ING Bank to provide coffee for their ING Direct Cafes, and a relationship with BiRite Foodservice to distribute Peet's coffees and teas to foodservice accounts throughout Northern California and Northern Nevada.

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 60 company-owned stores in four 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 800/999-2132. Peet's Coffee & Tea, Inc. shares are traded under the symbol PEET.

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. Because of the uncertainties inherent in these forward-looking statements, our actual results could differ materially from those set forth in forward-looking statements. The Company's estimates regarding our 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, coffee and other raw material prices and availability, successful execution of strategies and plans for expansion, competition, general economic conditions, the popularity of specialty coffee due to consumer trends, health factors or other issues, as well as other risk factors as described more fully in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K filed on April 2, 2001.