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Starbucks Coffee Company Increases International Store Count By More Than 20 Percent Year Over Year

Posted on: Wednesday, 8 February 2006, 15:00 CST

Worldwide and Cross-Cultural Relevance of Starbucks Experience Leads to 10 Consecutive Quarters of Profitability

Since Starbucks Coffee Company (Nasdaq:SBUX) opened its first stores outside North America nearly 10 years ago, the Company has grown to more than 3,000 stores in 36 countries outside of the United States, as of January 29, 2006. Starbucks long-term goal is to have at least 15,000 international stores.

At the end of fiscal 2005 alone, there were more than 2,900 Starbucks locations in international markets, with 1,438 stores in Asia-Pacific, 552 in Canada, 809 in Europe, Middle East and Africa (EMEA), and 140 in Latin America, representing an increase of more than 20 percent over fiscal year-end 2004. As of January 1, 2006, Starbucks has seen 10 consecutive quarters of profitability in its international operating segment.

"Fiscal 2005 was a year of continued progress and achievement," said Martin Coles, president of Starbucks Coffee International. "It was also a year in which the Starbucks Experience took hold internationally and the real potential for future growth became solidified. We've demonstrated that whether you're in Paris, London, or Hong Kong, great coffee, the human connection and our Third Place environment have universal appeal."

Highlights of fiscal 2005 included new market openings in Jordan, The Bahamas and Ireland; increasing equity ownership in Germany and Chile; obtaining majority ownership in Southern China; opening the first Company-operated stores in three cities in mainland China, including Qingdao, Dalian and Chengdu; and winning major trademark victories in China and Russia, paving the way for continued growth in China and future opportunities in Russia.

"Success in fiscal 2006 will rest on several factors, including recruiting and training great partners (employees), leveraging the power of the Starbucks brand, consistently delivering the Starbucks Experience, and strategically opening new markets while continuing to expand our presence in existing markets, especially China," said Coles.

"Looking ahead, we continue to target having at least 15,000 stores internationally," he added. "With aggressive growth planned for most of our current markets -- with China poised for the greatest expansion over time -- and new markets like Russia, Brazil and India on the horizon, that number seems very attainable."

About Starbucks Coffee Company

Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 10,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business. In addition to its retail operations, the Company produces and sells bottled Frappuccino(R) coffee drinks, Starbucks DoubleShot(R) espresso drink, and a line of superpremium ice creams through its joint venture partnerships. The Company's brand portfolio provides a wide variety of consumer products -- innovative superpremium Tazo(R) teas and exceptional compact discs from Starbucks Hear Music(TM) enhance the Starbucks Experience through best-of-class products. The Seattle's Best Coffee(R) and Torrefazione Italia(R) coffee brands enable Starbucks to appeal to a broader consumer base by offering an alternative variety of coffee flavor profiles.

This release includes forward-looking statements regarding anticipated store openings. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors including but not limited to successful execution of internal performance and expansion plans, fluctuations in U.S. and international economies and currencies and other risks detailed in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section of Starbucks Annual Report on Form 10-K for the fiscal year ended October 2, 2005. The Company assumes no obligation to update any of these forward-looking statements.

(C) 2006 Starbucks Coffee Company. All rights reserved.

Meeting b-roll footage will be available for download at IA-6, Transponder 21 (C-Band) Downlink Frequency: 4120 Vertical Audio 6.2/6.8 on Wednesday, February 8 from 10 a.m. (PT)/1 p.m. (ET) and 1 p.m. (PT)/4 p.m. (ET).

Source: Business Wire

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