EMERYVILLE, Calif. - Peet's Coffee & Tea announced that in response to the approximate 35% rise in green Arabica coffee prices since the beginning of this year, it will raise the price on most drinks by $0.10 and on beans sold in Peet's stores an average of 8%, effective September 29, 2010.

"The cost of coffee has risen dramatically this year and is now close to a 13-year high," said Patrick O'Dea, president and CEO. "We've been successful in offsetting a significant portion of these costs, enabling us to delay action until now and keep the price increase to a minimum. Despite the rising cost of coffee on the world market, we remain committed to buying the finest-quality beans, roasting them by hand in the world's only LEED Gold Certified Roastery (Leadership in Energy and Environmental Design), and delivering the freshest coffee to our customers."

Peet's also indicated it would selectively raise prices on packaged beans in its other channels of distribution either sometime during the company's calendar fourth quarter or early next year.

The company today also reaffirmed its fiscal 2010 GAAP diluted earnings per share target of $1.22 to $1.25 and non-GAAP diluted earnings per share target of $1.27 to $1.30. The non-GAAP earnings per share target excludes $0.05 of costs related to the company's response to the subpoena it received in connection with the Federal Trade Commission's anti-trust review of the acquisition of Diedrich Coffee by Green Mountain Coffee Roasters.

ABOUT PEET'S COFFEE & TEA Peet's Coffee & Tea, Inc. (PEET) is the premier specialty coffee and tea company in the United States. The company was founded in 1966 in Berkeley, Calif. by Alfred Peet. Peet was an early tea authority who later became widely recognized as the grandfather of specialty coffee in the U.S. Today, Peet's Coffee & Tea offers superior quality coffees and teas in multiple forms, by sourcing the best quality coffee beans and tea leaves in the world, adhering to strict high quality and taste standards, and controlling product quality through its unique direct store delivery selling and merchandising system. Peet's is committed to strategically growing its business through many channels while maintaining the extraordinary quality of its coffees and teas. For more information about Peet's Coffee & Tea, Inc., visit www.peets.com.

Double Forte Nicole Arena 415-848-8103 narena@double-forte.comor