Starbucks Leads Global Coffee Industry in Paying Premium Prices for Sustainably-Sourced Coffee

Starbucks Coffee Company (NASDAQ:SBUX) announced today that the
average price per pound it paid for all its coffee increased from
US$1.28 in fiscal year 2005 to US$1.42 ($3.12 per kilogram) in fiscal
year 2006. During the same period the industry average "C" (commodity)
market price was $1.04 per pound ($2.28 per kilogram). Additionally,
Starbucks announced that the coffee the Company purchased through its
independently verified coffee sourcing and purchasing guidelines,
known as C.A.F.E. Practices, increased from 77 million pounds (35
million kilograms) in fiscal year 2005 to 155 million pounds (70
million kilograms) in fiscal 2006 - 53 percent of the total coffee
purchased by the Company. This represents a year-over-year increase of
100 percent.

"At Starbucks, our commitment to pay premium prices for premium
quality coffee has not wavered over the years," said Dub Hay, senior
vice president, Coffee. "It's an approach that not only serves the
short- and long-term economic interests of coffee farmers and
suppliers; it also serves our needs by creating an incentive for
farmers to improve quality and increase production. That, in turn,
contributes to a more sustainable supply of the high-quality coffee we
depend on to support our continued growth."

Starbucks developed C.A.F.E. Practices (Coffee and Farmer Equity
Practices) in partnership with Conservation International and
Scientific Certification Systems to provide incentives for coffee to
be cultivated and processed in a sustainable manner.

Beyond paying premium prices for premium quality coffee, coffee
purchased under C.A.F.E. Practices guidelines meets criteria around
social responsibility in the farming community, economic transparency
to help ensure equitable payment to farmers for their crops, and
environmental leadership.

"Starbucks has shown real leadership by demonstrating how its
supply chain can be a powerful tool for conservation and sustainable
livelihoods," said Glenn Prickett, senior vice president for
Conservation International. "By expanding purchases through its
C.A.F.E. Practices program and paying premium prices, Starbucks is
providing farmers with an important incentive to grow coffee in an
environmentally friendly manner. This investment in coffee growing
communities further helps build local infrastructure, such as schools
and medical facilities, and contributes to the communities' long-term
success."

"C.A.F.E. Practices provides an opportunity to coffee suppliers
around the world to assess their socio-economic and environmental
standards while marketing their crop in a profitable and transparent
supply-chain," said Eduardo A. Esteve, managing director,
Agroindustrias Unidas de Mexico, S.A. de C.V. "As a farmer, every
point gained in C.A.F.E. Practices is translated into more
competitiveness. I have no doubt it has helped me become a better
employer making my farm, Guadalupe Zaju, a farm that can attract field
workers."

In addition to C.A.F.E. Practices-approved coffee, Starbucks
purchased coffee in fiscal year 2006 through other responsible
environmental or economic certification efforts. These included
conservation (shade grown) coffee (two million pounds or one percent
of Starbucks total coffee purchases), certified organic coffees (12
million pounds or four percent of Starbucks total coffee purchases),
and Fair Trade Certified(TM) coffee (18 million pounds or six percent
of Starbucks total coffee purchases). Starbucks remains one of the
largest purchasers, roasters and distributors of Fair Trade
Certified(TM) coffee in North America.

For more information about C.A.F.E. Practices, including specific
information about the verification process, please visit
http://www.scscertified.com/csrpurchasing/starbucks.html. For more
general information about Starbucks and coffee, please visit
http://www.starbucks.com/whatmakescoffeegood/.

About Starbucks Coffee Company

Starbucks Coffee Company provides an uplifting experience that
enriches people's lives one moment, one human being, one extraordinary
cup of coffee at a time. To share in the experience, visit
www.starbucks.com.