Starbucks Successful Year in Music Leads to Shift in Paradigm with Introduction of Transformative Approach to Entertainment Industry

Celebrating a successful year in music and a groundbreaking entryinto film, Starbucks (NASDAQ:SBUX) announced today the launch of twonew CD projects with world renowned recording artist Tony Bennett atthe Company's Annual Meeting of Shareholders. Additionally, more than5,000 Starbucks Shareholders were treated to a special preview of theupcoming Lionsgate film, "Akeelah and the Bee." These projects furtherdemonstrate Starbucks innovation in the music and film industries andthe ability to transform their customers' entertainment experience.

"Starbucks has created a truly transformational entertainmentexperience that provides our customers a venue to discover music andmovies from a brand they have come to trust," said Howard Schultz,chairman, Starbucks Coffee Company.

Two New Tony Bennett CD Projects

With the celebration of Tony Bennett's 80th birthday this year,Starbucks will pay tribute to an artist who represents the best ofAmerican culture. As a recording icon, a visual artist, a supporter ofarts education and a humanitarian, Bennett embodies the ideals ofintegrity, innovation and unwavering dedication to his craft. One ofthe rare recording artists to have new albums chart in five differentdecades, Tony Bennett is a singer's singer. Over the course of hisremarkable career, Bennett has earned countless accolades, including12 GRAMMY(R) Awards. Bennett has been honored with the GRAMMY(R)Lifetime Achievement Award, an EMMY award, the Kennedy Center Honors,a GRAMMY(R) for "Record of the Year" ("I Left My Heart in SanFrancisco," 1962), and "Album of the Year" ("MTV Unplugged," 1993).

To commemorate his 80th birthday milestone and to honor Bennett'slifetime of achievement and artistry, Starbucks Hear Music willintroduce customers to two new Tony Bennett CD projects in 2006.

"Tony Bennett transcends generations and demographics," said KenLombard, president of Starbucks Entertainment. "It is an honor to workwith Tony Bennett to offer two remarkable recordings to our customers.We are excited to commemorate him on the occasion of his 80th birthdayand are enthusiastic about helping our customers discover andcelebrate his music this year."

The first is a Starbucks Hear Music(TM) Opus Collection, "Throughthe Years," which will be available exclusively at StarbucksCompany-operated locations in the U.S. and Canada beginning on April4. Starbucks Hear Music worked with Bennett to select a mix of classichits as well as some of the artist's hand-picked personal favorites,to create a portrait of Bennett's musical career. Included on the15-track CD, "Through the Years," are "I Left My Heart in SanFrancisco," "My Favorite Things," "Cold, Cold Heart," and "The Way YouLook Tonight."

Later in 2006, Starbucks will offer a second CD, a RPM/Columbianational new release, which will feature newly recorded duets withBennett and a wide range of musical artists, among them Bono, theDixie Chicks and Billy Joel. The repertoire will include the songsmost closely associated with Bennett's catalog of hits from his fivedecades of recording. The duets album, which is currently untitled,will be available simultaneously at Starbucks Company-operatedlocations as well as traditional retailers.

"I feel very fortunate to celebrate my 80th birthday with thesetwo CD releases -- the first as a retrospective of my career followedby a collection of new recordings with musical performers that Iadmire," says Tony Bennett. "To be associated with Starbucks HearMusic, which has proven its ability to connect artists with customerswho love great music, is a wonderful opportunity."

More than 5,000 Starbucks Shareholders View Trailer of UpcomingMovie "Akeelah and the Bee"

Also at today's meeting, more than 5,000 Starbucks shareholderswere among the first in Washington to preview the upcoming Lionsgatefilm, "Akeelah and the Bee," and share in Starbucks enthusiasm for thenext phase of its Entertainment strategy. As Starbucks continues toseek and capitalize on emerging opportunities, the Company will takeits strategy to the next level by bringing relevant and uniqueentertainment to the forefront and utilizing its expansive retailfootprint.

"Film has always been part of the strategic roadmap forentertainment at Starbucks," said Lombard. "We think customers willappreciate the movie's authentic and inspirational qualities and findthat this film meets the high-quality entertainment standards ourcustomers have come to expect. It's a logical evolution that StarbucksEntertainment would move into partnering with film studios."

"We are thrilled to share this special preview of 'Akeelah and theBee' with Starbucks shareholders," said Jon Feltheimer, chiefexecutive officer, Lionsgate. "Starbucks customers have come to trustStarbucks curatorial voice and expect high-quality products andservices. We are proud to present the first film in this new phase oftheir entertainment strategy."

The Year Ahead

Starbucks Entertainment is looking forward to another excitingyear, both in film and music, by changing the rules of engagement andleveraging a unique set of assets to offer customers exposure toquality entertainment options and discovery as part of their dailycoffee routines.

Upcoming projects include:

-- Launching the second Hear Music(TM) Debut CD, Sonya Kitchell's "Words Came Back to Me," which will be simultaneously released at Starbucks and traditional music retail by Velour Music Group and Starbucks Hear Music

-- Opening of the third Starbucks Hear Music(TM) Coffeehouse located in Miami

-- Supporting the theatrical release of "Akeelah and the Bee" through in-store promotions and word of mouth marketing in more than 5,500 Company-operated locations and select licensed locations in the U.S. and Canada

-- Beginning April 4, begin carrying the "Akeelah and the Bee" soundtrack and will carry the DVD in U.S. Company-operated locations when it is available later in 2006

By elevating the music experience in stores and instilling arenewed sense of value to the discovery and acquisition of music forcustomers, Starbucks has created a powerful new distribution channelfor the music industry. A solution that transforms the way labels,artists and music fans connect. As the Company moves into film, itremains committed to furthering its music strategy and is confidentthat music will always be a part of the Starbucks Experience and anessential part of the coffeehouse culture. Starbucks success withmusic has been instrumental in the decision to continue to innovate,and extend the brand further into entertainment. Starbucks willcontinue to select quality content, provide customers with discoveryand do it in a way that enhances their experience.

"It all gets back to the basics, the foundation upon which webuilt this Company," said Schultz. "It's around the human connectionand our passion to innovate and grow with new offerings, new soundsand new experiences, while seeking opportunities to increaseshareholder value."

Proven Track Record: Transformation and Success

During the past several years, Starbucks has successfullyintroduced artists who could not find space in conventional musicstores or on traditional radio playlists. This year is no different.Starbucks has demonstrated that it is a market maker in the musicindustry, and leaders in the Entertainment industry have validatedthis. Starbucks seeks to be an innovator in the marketing anddistribution of film.

Some significant milestones from the past year include:

-- Ray Charles's "Genius Loves Company" wins eight GRAMMY(R) awards including Album of the Year and Song of the Year

-- Starbucks unit CD sales in Company-operated retail stores increases by 307 percent from fiscal year 2004 to fiscal year 2005 - representing 3.5 million units of more than 40 album titles

-- The Starbucks co-release of Herbie Hancock's "Possibilities" CD with Hancock Music and Vector Recordings receives two GRAMMY(R) nominations and is the most successful debut in Mr. Hancock's career, selling more than 42,000 copies in its first week of sales in U.S.

-- Influence on the music industry is evident with emerging artists. Starbucks inaugural launch of the "Hear Music(TM) Debut" CD series, featuring emerging artist Antigone Rising, has sold 121,000 units since May 11, 2005

-- Opens second, enhanced Starbucks Hear Music(TM) Coffeehouse, located in San Antonio, Texas, an innovative retail store which blends the classic Starbucks coffeehouse experience with an extensive selection of physical CDs and the next generation of the Hear Music(TM) media bars featuring more than 1 million digital tracks

-- Announces the next evolution of Starbucks Entertainment's strategy, with the film "Akeelah and the Bee"

The success achieved over the past year demonstrates Starbucksfirm commitment to bring music and entertainment innovation to ourcustomers. Additionally, this past year's success in musicdemonstrates that customers have given the Company permission to gobeyond music. These milestones have enhanced the Starbucks Experience.Customers have responded positively to the music offered in ourstores, showing that there is a demand for new channels of discoveryfor quality entertainment.

About Hear Music(TM) Opus Collection CDs

The Hear Music(TM) Opus Collections CD series features favoritesongs by artists essential for any record collection. The StarbucksHear Music content team selects a mix of classic tunes and songspeople may not have ever heard to create a portrait of a musicalgiant. Hear Music(TM) Opus Collections to date include: Miles Davis,Joni Mitchell, Frank Sinatra, Elvis Presley, Otis Redding, BillieHoliday, Nina Simone, Nat King Cole, Ray Charles, Aretha Franklin, theBeach Boys, the Isley Brothers, Dean Martin and Etta James.

About Starbucks Coffee Company

Starbucks Corporation is the leading retailer, roaster and brandof specialty coffee in the world, with more than 10,500 retaillocations in North America, Latin America, Europe, the Middle East andthe Pacific Rim. The Company is committed to offering the highestquality coffee and the Starbucks Experience while conducting itsbusiness in ways that produce social, environmental and economicbenefits for communities in which it does business. In addition to itsretail operations, the Company produces and sells bottled StarbucksFrappuccino(R) coffee drinks, Starbucks DoubleShot(R) espresso drink,and a line of superpremium ice creams through its joint-venturepartnerships. The Company's brand portfolio provides a wide variety ofconsumer products -- innovative superpremium Tazo(R) teas andexceptional Starbucks Hear Music(TM) compact discs enhance theStarbucks Experience through best-of-class products. The Seattle'sBest Coffee(R) and Torrefazione Italia(R) Coffee brands enableStarbucks to appeal to a broader consumer base by offering analternative variety of coffee flavor profiles.

Meeting b-roll footage will be available for download at IA-6,Transponder 21 (C-Band) Downlink Frequency: 4120 Vertical Audio6.2/6.8 on Wednesday, February 8 from 10 a.m. (PT)/1 p.m. (ET) and 1p.m. (PT)/4 p.m. (ET).