Starbucks Hosted African Coffee Stakeholders Celebrating Economic, Social Development in East Africa

In acknowledgement of the significant progress taking place in theAfrican coffee growing regions, Starbucks Coffee Company (NASDAQ:SBUX)hosted an "African Coffee Celebration" at its Seattle headquarters tohonor coffee farmers in East Africa. The farmers efforts incollaboration with Starbucks and other partners have resulted in someof the highest quality coffee beans introduced in recent years,contributing to new economic and social developments in their coffeegrowing communities.

The two-day celebration on May 31 and June 1, 2006, centeredaround coffee farmers and exporters from four African nations -- somevisiting the United States and Starbucks headquarters in Seattle forthe first time. Representing Ethiopia, Kenya, Rwanda, and Tanzania,the farmers and exporters met with public policy makers, strategicbusiness partners, and Starbucks partners (employees) to share theirpersonal experiences. Guests also were educated about Starbuckssocially responsible coffee buying practices, updated on the status ofvarious social and economic initiatives in East Africa and experienceda "coffee cupping" to taste coffees from each African nation.

"The cooperative union that I represent -- Oromia Coffee FarmersCooperative Union and two other unions Sidama and Yirgacheffee havebeen selling coffee to Starbucks since 2003 and have been fortunate tosell our coffees to Starbucks for a price that is better than theconventional market," said Tadesse Meskela Gudeta, an agriculturaleconomist and farmer in Ethiopia. "Besides buying coffee, Starbucks isinvesting in social projects in Ethiopia and are creating long-termrelationships with coffee farmers by focusing on sustainability,empowerment of farmers, environmental management, conservingbiological diversity, and a healthy working environment for workers."

Starbucks Updated Guests on the "African Heartlands CoffeeProject"

Starbucks proudly announced that the "African Heartlands CoffeeProject," which launched in June 2005, is now rolling out the firstinitial stages of Starbucks C.A.F.E. Practices in Kenya. C.A.F.E.(Coffee and Farmer Equity) Practices are Starbucks coffee buyingguidelines designed to encourage coffee farmers to grow high-qualitycoffee and to promote equitable relationships with farmers, workers,and communities, as well as protect the environment. The three-yearventure and $600,000 commitment launched in collaboration with theAfrican Wildlife Foundation -- a leading conservation organizationwith nearly 45 years of successful expertise working in Africa --focuses on growing and processing coffee in a sustainable manner whilemeeting Starbucks high quality standards, a pre-requisite for C.A.F.E.Practices. Working together, the verification team will further theadoption of sustainable coffee growing and processing practices inKenya and Tanzania.

"The many positive developments taking place in East Africa'scoffee growing regions is a clear reflection of the hard work anddedication of coffee growers who are passionate about embracing higherquality standards," said Jim Donald, Starbucks president and ceo."Through continued education, implementation of new stages of C.A.F.E.Practices and collaboration with local and international organizationswith proven expertise in Africa, Starbucks looks forward tocelebrating even more successes with Africa's coffee farmers."

Information shared during the two-day event included an update onreconstruction efforts to rehabilitate two pulping stations, which areessential to the production of coffee. Now completed, the pulpingstations better enable farmers in Kihuyo and Kiamariga to produce highquality coffee, and serve as models for water recirculation andconservation, waste re-use and management and energy conservation.

"We are so proud of the work completed thus far on the AfricanHeartlands Coffee Project," said Annika Vieira, director, corporatepartnerships from the African Wildlife Foundation. "Collaborating withStarbucks is such a unique experience because the Company trulyunderstands and cares about the economic and social well-being ofcoffee farmers and communities, as well as the conservation of theenvironment."

Black Apron Exclusives Award New Opportunities

Starbucks was also proud to share the positive impact the awardingof "Black Apron Exclusives" has had on farmers' livelihoods and coffeegrowing practices. The Black Apron Exclusives coffees are a rare honorbestowed upon only the best and most exceptional coffees found in theworld, and are produced in limited supply. To date, five out of 11Starbucks Black Apron Exclusives have been awarded to African coffeegrowers. Starbucks awards US$15,000 for each Black Apron Exclusivescoffee, which is to be applied to projects that will help to improvethe lives of the farmers in the community. Attendees learned where andhow these projects have been carried out by the various farmers whichincluded:

Ethiopia:

-- Shirkina Black Apron Exclusives Award (#8, October 2005) - The Fero Cooperative utilized the award to partly finance construction costs of the Cooperative's new office.

-- Ethiopia Harrar Black Apron Exclusives Award (#2, June 2004) - The coffee farming village of Dire Dawa, which brought this coffee to Starbucks, used the award money to help support their community's medical services.

-- In FY04 and FY05, Starbucks Coffee U.K. additionally contributed a total of $148,000 toward the installation of a water pump that directs water into a reservoir tank built around the town of Bensa Ware Kebele in Ethiopia.

-- Starbucks U.K. also sponsored the construction of a new library and provided books needed for students at the nearby Daye High School in Ethiopia to continue their studies.

Kenya:

-- Kenya Kirinyaga Black Apron Exclusives Award (# 9, January 2006) - The Kikuyu tribe members who cultivated this coffee purchased computers, software, and computer training, which will allow the Cooperative to implement an electronic bookkeeping for the delivery of coffee cherries.

Rwanda:

-- Rwanda Blue Bourbon Black Apron Exclusives Award (#10, March 2006)- The coffee farmers that deliver coffee cherries to the Gatare and Karengera washing stations used the award to purchase cows for the communities' coffee farmers, which supplement their local diets and provide organic fertilizer for their smallholder coffee farms.

-- Additionally in FY06, Starbucks Coffee Company contributed nearly $8,000 for the purchase of classroom furniture including chairs, desks, and lockers for six classrooms at Kinunu School in Kayove District in Rwanda. A Starbucks exporter and the local community also sponsored the construction of a playground for the school, benefiting more than 100 children.

Tanzania:

-- Elephant Kinjia Black Apron Exclusives (Award #6, May 2005) - Blackburn Estate's award contributed to a rainwater system to construct a sanitary building, and to supply the community with new drying beds to process their coffee. Both projects helped improve living conditions and health services in the village.

Starbucks Coffee Company

Through the dedication of our passionate partners (employees),Starbucks Coffee Company has transformed the way people in 37countries enjoy their coffee, one cup at a time. Starbucks is thepremier purveyor of the finest coffee in the world, with more than11,000 retail locations in North America, Latin America, Europe, theMiddle East and the Pacific Rim. The Company is committed to offeringits customers the highest quality coffee and human connection throughthe Starbucks Experience, while striving to improve the social,environmental and economic well being of its partners, coffee farmers,countries of coffee origin, and the communities which it serves.Through Ethos Water, Starbucks demonstrates its long history ofintegrating a social conscience into all aspects of its business. TheCompany surprises and delights its customers by producing and sellingbottled Starbucks Frappuccino(R) coffee drinks, StarbucksDoubleShot(R) espresso drinks and Starbucks(R) superpremium ice creamsthrough its joint-venture partnerships, and Starbucks(TM) Coffee andCream Liqueurs through a marketing and distribution agreement, inother convenient locations outside its retail operations. TheCompany's brand portfolio includes superpremium Tazo(R) teas,Starbucks Hear Music(TM) compact discs, Seattle's Best Coffee andTorrefazione Italia. These brands' unique and innovative personalitiesallow Starbucks to appeal to a broad consumer base.