Diedrich Coffee Signs Franchise Agreement for Development of 40 Coffeehouses in Colorado (7/00)

Diedrich Coffee, Inc., a leading coffeehouse operator, franchiser, wholesaler and custom roaster of specialty coffees, announced that it has signed a major Franchise area development agreement. The agreement with the Coffeehouse Colorado LLC calls for the development of 40 Diedrich Coffee brand coffeehouses in the state of Colorado over the next five years.

The principals of the newly formed Coffeehouse Colorado LLC, Gary Robison and Nick Kraft, have significant experience in the ownership, operation and development of ten Burger King restaurants in Denver, Colorado. Coffeehouse Colorado LLC will also operate the six existing Diedrich Coffee brand coffeehouses and espresso bars currently located in Denver.

Diedrich Coffee, Inc. is the nation's second largest retailer in the specialty coffee market with annual system-wide revenues in excess of $150 million annually through 363 retail locations in 37 states and nine foreign countries. The Company's primary brands are Diedrich Coffee brand 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.