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Green Mountain Coffee Roasters Announces Price Increase.

WATERBURY, Vt. -- Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) today announced a price increase of approximately $.35 per pound of roasted coffee. This price increase, of less than a penny per cup of brewed coffee, reflects the impact of three factors: a sharp increase in the commodity ("C")

price for green unroasted coffee, increasing differentials for premium quality coffees, and higher energy and transportation costs. The price increase will be effective on orders that ship beginning January 10, 2005.

Market forces have increased the commodity ("C") price of "green" unroasted coffee by over 40% since August of 2004. In addition, the quality differentials above the "C" that Green Mountain Coffee Roasters pays to obtain its high quality coffees have widened. Finally, the higher national prices for energy and transportation also are partially responsible for the price increase announced today.

Scott McCreary, Chief Operating Officer of Green Mountain Coffee Roasters, said, "While adjusting prices is always a difficult decision, the significant increases in raw material costs coupled with higher fuel and energy expenses make this action a necessity. We have been, and will continue to be focused on providing our customers with the best value in coffee and service possible."

President and CEO Robert Stiller noted, "Our coffees have received some of the highest quality ratings by the Coffee Review, one of the most respected and widely read independent coffee reviewers in the world. Providing great-tasting, high-quality coffees for our customers, giving customers excellent service, and contributing to the quality of life for coffee farmers, continue to be our key areas of focus. We believe our highly rated coffees and our support services enable our wholesale customers to bring outstanding value to specialty coffee lovers."

Green Mountain Coffee Roasters, Inc. is a leader in the specialty coffee industry and offers over 100 coffee selections including estate, certified organic, Fair Trade Certified(TM), signature blends, and flavored coffees that it sells under the Green Mountain Coffee Roasters(R) and Newman's Own(R) Organics brands. While the majority of Green Mountain Coffee's revenue is derived from its wholesale operations, the Company also operates a direct mail business and an e-commerce website (www.GreenMountainCoffee.com) from its Waterbury, Vermont, headquarters. Each year the Company contributes at least five percent of its pre-tax profits to support socially responsible initiatives. Based on its performance, Green Mountain Coffee Roasters has been recognized for the past five years as one of Forbes Magazine's "200 Best Small Companies," for the past two years in the top ten on Business Ethics magazine's list of "100 Best Corporate Citizens," and in 2004 as one of the Society of Human Resource Management's "Best Medium Companies to Work for in America."

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