Coffee People, Inc. Hires Senior Vice President; Jim McDermet to Oversee Oregon and Washington Operations.

BEAVERTON, Ore.--(BUSINESS WIRE)--Nov. 5, 1998--Coffee People, Inc. (Nasdaq:MOKA) today announced that Jim McDermet has been hired as senior vice president of the specialty coffee retailer, effective November 2, 1998.

McDermet brings extensive experience in managing company growth strategies to Coffee People, Inc. which announced its plans to franchise its Oregon stores in early September.

McDermet comes to Coffee People with over 28 years of experience in the food service industry. Most recently, he served as president and chief operating officer of Briazz, Inc. of Seattle, Wash. Prior to that, he served as president and chief operating officer of Java Southeast, Inc., headquartered in Miami, Fl. He also spent more than 20 years with Burger King, where he was responsible for developing franchise projects and for managing over 400 franchised restaurants.

"We are excited about the opportunity to have someone of Jim McDermet's background and experience joining the Coffee People team," said Alton McEwen, president and chief executive officer of Coffee People, Inc. "We look forward to Jim's contributions and to the continuing success of the Coffee People culture," McEwen added.

Taylor Devine, who was hired as president and chief operating officer of Coffee People, Inc. in September 1995, will leave the company to pursue other business opportunities. Devine's resignation becomes effective December 31, 1998.

Established in 1983, Coffee People, Inc. is the second largest specialty coffee retailer in the United States. The company has 313 stores throughout the United States and in six foreign countries, including 272 Gloria Jeans stores in 38 states, 15 Coffee Plantation stores in Arizona and 26 Coffee People stores in Oregon. For more information about the coffee company, visit the company's web site at www.coffeepeople.com.