Starbucks Announces Strategic Initiatives to Increase Shareholder Value; Chairman Howard Schultz Returns as CEO

The Board of Directors of Starbucks Coffee Company (NASDAQ:SBUX)
today announced a series of initiatives aimed at driving shareholder
value by refocusing the Company on providing customers with the
distinctive Starbucks Experience and building on Starbucks legacy of
innovation. To accomplish this objective, the Board has appointed
Howard Schultz, chairman, to take on the additional role of chief
executive officer, effective immediately, replacing Jim Donald, who is
leaving the Company.

"Howard is the architect of the Starbucks brand and the visionary
behind the unique customer experience that is at the heart of this
remarkable company´s success," said Craig Weatherup, chairman of the
Starbucks Board´s Nominating and Corporate Governance Committee.
"Given what the Board believes needs to be done, there is no better
person to drive change and ensure that Starbucks is positioned to
innovate, execute and relentlessly focus the entire organization on
the customer."

Schultz served as chief executive officer of the Company from 1987
to 2000. During that period, the Company went public in 1992 and
enjoyed exceptional U.S. and international growth. From 2000 onward,
in his role as chairman, Schultz focused on the Company´s global
strategies and expansion, which now includes a significant and growing
presence in 43 countries. As chairman and chief executive officer, he
will be responsible for the overall strategic direction of the
company, with a predominant focus on everything that touches the
customer. Martin Coles, chief operating officer, will work closely
with Schultz and have oversight responsibility for all operational
aspects of the business.

"I am enthusiastic about returning to the role of chief executive
officer for the long term and excited to lead Starbucks and its
dedicated partners (employees) to even greater heights of achievement
on a global basis," Schultz said. "We must address the challenges we
face and we know what has to be done. Put simply, we are recommitting
ourselves to what has made Starbucks and the Starbucks Experience so
unique: ethically sourcing and roasting the highest quality coffee in
the world; the relentless focus on the customer; the trust we have
built with our people, and the entrepreneurial risk-taking, innovation
and creativity that are the hallmarks of our success."

Schultz stated that his agenda will include:

-- improving the current state of the U.S. business by refocusing
on the customer experience in the stores, new products and
store design elements, and new training and tools for the
Company´s store partners to help them give customers a
superior experience;

-- slowing the Company´s pace of U.S. store openings and closing
a number of underperforming U.S. store locations, enabling
Starbucks to renew its focus on its store-level unit
economics;

-- re-igniting the emotional attachment with customers and
restoring the connections customers have with Starbucks(R)
coffee, brand, people and stores;

-- re-aligning Starbucks organization and streamlining the
management to better support customer-focused initiatives and
reallocating resources to key value drivers; and

-- accelerating expansion and increasing the profitability of
Starbucks outside the U.S., including redeploying a portion of
the capital originally earmarked for U.S. store growth to the
international business.

"Taken together, these initiatives will help transform Starbucks
and drive the Company´s enduring success. We know that we can improve
our performance by getting back to the essence of what drove Starbucks
past success - our passion for the business and a complete focus on
the customer and our relationship with our people. In doing so, we
will rely on the continued efforts and dedication of our partners all
around the world, who have and will continue to contribute so much to
the Starbucks success story," commented Schultz.

Starbucks will provide further details about its updated store
growth strategy and other actions during its 2008 first quarter
earnings call on January 30, 2008.

Schultz stated that there are no one-shot solutions or overnight
fixes, rather success lies in rigorous execution of the objectives he
outlined for the Company. "The position we hold today in our
customers´ and partners´ hearts and souls all around the world is not
an entitlement. We must earn the trust of our customers every day - by
how we conduct our business, how we treat each other as people and how
we act as a responsible corporate citizen. We remain committed to
providing health care for all full and part-time partners, executing
our best-in-class Corporate Social Responsibility efforts, and
encouraging our coffee suppliers to participate in our C.A.F.E.
(Coffee and Farmers Equity) practices program in our origin countries.

"On behalf of the Board and all Starbucks partners, I would like
to thank Jim Donald for his numerous contributions to our Company. Jim
was a passionate and tireless advocate for our brand, and we wish him
success in his future endeavors," concluded Schultz.

Widely known as the architect of Starbucks brand image, Howard
Schultz joined Starbucks Coffee Company as director of operations and
marketing in 1982, when the Company had only four stores. In August
1987, Schultz purchased Starbucks Coffee Company. Under Schultz´s
leadership, Starbucks was one of the first companies in North America
to offer two unique benefits to its eligible full- and part-time
partners: healthcare benefits, and grants in the form of stock
options, called Bean Stock. In June 1992, Starbucks was the first
specialty coffee company to become a public company and is now the
leading retailer, roaster and brand of specialty coffee in the world.
In addition to its retail locations in North America, Latin America,
Europe, the Middle East and the Pacific Rim, Starbucks sells coffee
and tea products through its specialty operations, and licensed
stores.

Conference Call with Financial Community

The Company will host a conference call for the financial
community today at 5:30 p.m. (EST) to discuss the announcement. The
call will be available as an audio webcast through the Investor
Relations section of the Company´s website at
http://investor.starbucks.com.

Following today´s call, the Company´s next conference call will be
to discuss its financial results for the 2008 first quarter as well as
to provide further details on its store growth strategy and other
actions. The call will be held on Wednesday, January 30, 2008,
following the issuance of its 1Q08 financial results press release.

About Starbucks

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.

Forward-Looking Statements

This release includes forward-looking statements about recent
trends in the company´s business and the company´s future business
plans, initiatives and objectives. These forward-looking statements
are based on currently available operating, financial and competitive
information and are subject to various risks and uncertainties. Actual
future results and trends may differ materially depending on a variety
of factors including, but not limited to, coffee, dairy and other raw
material prices and availability, successful execution of internal
performance and expansion plans, fluctuations in U.S. and
international economies and currencies, the impact of initiatives by
competitors, the effect of legal proceedings, and other risks detailed
in the company´s filings with the Securities and Exchange Commission,
including the "Risk Factors" section of Starbucks Annual Report on
Form 10-K for the fiscal year ended September 30, 2007. The company
assumes no obligation to update any of these forward-looking
statements.

To read a letter to Starbucks customers, go to www.starbucks.com.