Starbucks Completes Acquisition of Seattle CoffeeCompany.

SEATTLE--(BUSINESS WIRE)--May 29, 1998--Starbucks Coffee Company announced today that it has successfully completed the acquisition of Seattle Coffee Company, the leading specialty coffee company in the United Kingdom. Starbucks will issue 1,817,894 shares of its common stock in exchange for

Seattle Coffee Company currently operates 61 Starbucks-style retail stores across the UK and has plans to open at least 25 additional locations by the end of the calendar year.

The acquisition is a first step towards achieving Starbucks new goal of opening 500 retail locations in Europe by the end of 2003.

Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in North America. In addition to its 1,668 retail locations in North America and the Pacific Rim, Starbucks sells whole bean coffees through its specialty sales group, direct response business and supermarkets. Additionally, through its joint venture partnerships, Starbucks produces and sells bottled Frappuccino(R) coffee drink and a line of premium ice creams. -0- http://www.businesswire.com/cnn/sbux.htm NewsOnDemand: 800/239-0317

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