Diedrich Coffee To Expand Into Nevada (3/00)

Diedrich Coffee, Inc., the nation's second largest retailer in the specialty coffee market, announced that it has signed a second development agreement with M & P Coffee, Ltd. that calls for the development of 17 coffeehouses and an undetermined number of kiosks and carts in Nevada. M & P Coffee currently has an agreement with Diedrich Coffee to open 50 coffeehouses in Southern California.

Diedrich Coffee's national expansion objective is to add 1,200 to 1,500 new Diedrich Coffee coffeehouses over the next five to seven years through Franchise area development agreements with experienced, Multi-unit franchise operators. With this latest agreement, Diedrich Coffee has entered into eight major franchise area development agreements that provide for the development of approximately one-third of these units, up to 494 new coffeehouses.

In 2000, Diedrich Coffee coffeehouses will begin to open in the Florida; Southern California; North Carolina; Phoenix, AZ; Portland, OR; Connecticut and Nevada markets.

Diedrich Coffee, Inc. is the nation's second largest retailer in the specialty coffee market with 360 outlets in 38 states and nine foreign countries. The company's primary brands are Diedrich Coffee coffeehouses and Gloria Jean's Coffees, the nation's leading chain of mall-based coffee stores. Headquartered in Irvine, Calif., Diedrich Coffee specializes in sourcing and custom roasting the world's highest quality coffees and offering them to customers through its coffeehouses and mall stores and via wholesale, mail order and its website.