Coffee Holding Co., Inc. Announces Formation of Joint Venture.

BROOKLYN, N.Y. -- Coffee Holding Co., Inc. (AMEX:JVA) today announced that it has entered into a joint venture with Caruso's Coffee of Brecksville, Ohio. Pursuant to the terms of the joint venture, Generations Coffee Company, LLC, a Delaware limited liability company (the "Joint Venture"), will engage in the roasting, packaging and sale of private label specialty coffee products from its Brecksville location. Coffee Holding will own 60% of the Joint Venture and Caruso's Coffee will own 40% of the Joint Venture. The profits earned by the Joint Venture will be divided among the parties in accordance with their respective percentage ownership interests. Coffee Holding will be the exclusive supplier of coffee inventory for the Joint Venture.

"Generations Coffee will become the specialty arm of Coffee Holding," said Andrew Gordon, President and Chief Executive Officer of Coffee Holding. "This Joint Venture will allow us to bid on the private label gourmet whole bean business we have not been equipped to pursue from an operational standpoint in the past. With this specialty roasting facility in place, in many cases right in the backyard of our most important wholesale and retail customers, we are in an ideal position to combine our current canned private label business with high-end private label specialty whole bean business. High-end specialty whole bean coffee sells for as much as three times more per pound than the canned coffees in which we currently specialize. We believe that our entry into this line of business will result in both higher revenue and profits."

"Additionally, we have taken a step to vertically increase the specialty supply side of our business by now becoming a player on both the wholesale and retail ends, taking away the one dimensionality of our current structure where we were only on the wholesale end of selling green unroasted specialty Arabica beans. We will now be roasting these same gourmet coffee beans for our existing customers, putting us in a position to supply them with the entire spectrum of their private label coffee needs. We believe that the Joint Venture also broadens our customer base and allows us to potentially seek strategic acquisitions on the specialty coffee side of the business - smaller regional roasters who were too small for us to digest in our current business model but which could more easily be integrated into Generations Coffee."

"Lastly, we do not believe the Joint Venture will directly compete with our current specialty green coffee customer base, as they do not, for the most part, service these types of retailers' private label needs, as their predominant focus is usually marketing their own brands as well as sales to smaller upscale boutique retailers and specialty coffee shop type businesses."

About Coffee Holding Co.

Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding has been a family operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. Coffee Holding's private label and branded coffee products are sold through the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi unit retail customers.

Any statements that are not historical facts contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in Coffee Holding's Securities and Exchange Commission filings. Coffee Holding undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.