Coffee People Inc. opens 20th Oregon location; Two stores slated in Denver area.

PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 30, 1996--Coffee People Inc. (NASDAQ:MOKA), a specialty coffee retailer and operator of coffee houses, has opened its 20th store in Oregon and plans to add two stores in the Denver area in November.

The Denver stores will be the first ones outside Oregon and signal the start of a major expansion program for the company.

The newest store in Tigard opened on Oct. 29 and is the company's third suburban location. It features a menu of more than 200 coffee drinks, shakes, pastries and other coffee-related products.

Leases have been signed for the two Denver area stores -- one in Greenwood Village and the other in Lakewood -- and both stores are anticipated to be open by mid November.

"The opening of stores in the Denver area is the first step in our expansion program that targets the addition of 30 new stores in selected cities between now and the end of 1997," said Jim Roberts, president and chief executive officer. "With the proceeds from the company's initial public offering of 1.55 million shares of common stock in late September, we have the financial strength to move ahead with this strategic growth plan."

Roberts said that several stores are planned in the Colorado market and expansion opportunities are also being studied in other Western states.

In business since 1983, Coffee People currently has 20 outlets in Oregon including coffee houses, drive-through Motor Mokas(R) and Aero Moka(TM) kiosks at the Portland International Airport. For the first six months of 1996, the company had revenues of $5.9 million.

CONTACT: Coffee People Inc.

Ken Ross, 503/223-7714

or

In.ves'com

Dolores Chenoweth, 503/291-1924