Starbucks Reports 22 Percent Revenue Growth in June; Comparable Store Sales Increase Six Percent

"In June, we continued to deliver solid revenue and comparablestore sales growth in line with our growth targets," stated JimDonald, Starbucks president and chief executive officer. "Sales wereprimarily driven by the popularity of our seasonal handcrafted blendedbeverages. In addition, food sales were a strong contributor, fromboth expanded lunch locations and enhanced bakery offerings, alldelivered with friendly and enthusiastic service by our storepartners."

For the 39 weeks ended July 2, 2006, consolidated net revenueswere $5.8 billion, an increase of 23 percent from consolidated netrevenues of $4.7 billion for the same 39-week period in fiscal 2005.Comparable store sales increased eight percent for the 39 weeks endedJuly 2, 2006, as compared to the same 39-week period in fiscal 2005.
Net stores opened during
the 39 weeks ended Stores open as of
July 2, 2006 July 2, 2006
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United States:
Company-operated Stores 526 5,393
Licensed Stores 517 2,952
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1,043 8,345
International:
Company-operated Stores 162 1,357
Licensed Stores 338 2,082
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500 3,439

Total 1,543 11,784
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Starbucks plans to release its fiscal third quarter 2006 financialresults on August 2, 2006, and will hold a conference call at 1:30p.m. Pacific time on the 2nd to discuss these results. The conferencecall will be broadcast live over the Internet and can be accessed at:http://www.starbucks.com/aboutus/investor.asp.

Through the dedication of our passionate partners (employees),Starbucks Coffee Company has transformed the way people in 37countries enjoy their coffee, one cup at a time. Starbucks is thepremier purveyor of the finest coffee in the world, with more than11,500 retail locations in North America, Latin America, Europe, theMiddle East and the Pacific Rim. The Company is committed to offeringits customers the highest quality coffee and human connection throughthe Starbucks Experience, while striving to improve the social,environmental and economic well being of its partners, coffee farmers,countries of coffee origin, and the communities which it serves.Through Ethos Water, Starbucks demonstrates its long history ofintegrating a social conscience into all aspects of its business. TheCompany surprises and delights its customers by producing and sellingbottled Starbucks Frappuccino(R) coffee drinks, StarbucksDoubleShot(R) espresso drink and Starbucks(R) superpremium ice creamsthrough its joint venture partnerships, and Starbucks(TM) Coffee andCream Liqueurs through a marketing and distribution agreement, inother convenient locations outside its retail operations. TheCompany's brand portfolio includes superpremium Tazo(R) teas,Starbucks Hear Music(TM) compact discs, Seattle's Best Coffee andTorrefazione Italia. These brands' unique and innovative personalitiesallow Starbucks to appeal to a broad consumer base.

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