Diedrich Coffee Introduces Limited-Reserve Guatemalan Estate Coffee.

IRVINE, Calif.--(BUSINESS WIRE)--Oct. 28, 1998--Offering Southern Californians the chance to enjoy an extremely rare Guatemalan estate coffee, Diedrich Coffee (Nasdaq: DDRX) is launching the limited-edition Finca Dos Marias(TM) in its coffeehouses this month.

Finca Dos Marias, which means the "Plantation of Two Marias," is a sustainable estate coffee(a) grown west of Antigua in the Department of San Marcos. Estate coffees are those grown and produced on one farm, often run for generations by families who are dedicated to exacting standards and a concern for the environment.

Finca Dos Marias is set in a remote, mountainous region of Guatemala that offers the perfect environment for optimal bean growing. The combination of altitude (5,000 feet), annual rainfall (80 - 90 inches) and temperature range (65 degrees - 75 degrees F) create a micro-climate that produces the highly sought-after "strictly hard bean" which results in coffee that is more complex and flavorful. Finca Dos Marias, a medium roast, displays classic Guatemalan coffee traits: a crisp, clean top layer and a smoky, spicy finish.

Martin Diedrich, chief coffee officer for Diedrich Coffee, who spent his early years on his family's coffee plantation in Guatemala, said he is delighted that Diedrich Coffee can offer patrons such a remarkable, limited-reserve coffee.

"Finca Dos Marias is harvested only once each year and unlike most coffees available in the world today, it is processed primarily by hand. Each individual bean is checked three times by the plantation's coffee sorters. This amazingly intensive quality-control ensures that the coffee's brilliant taste and sharp, acidic qualities are realized," said Diedrich.

The Finca Dos Marias plantation, originally planted in the 1870s, is set below a virgin cloud forest that has become a breeding ground for the nearly-extinct Quetzal bird, Guatemala's "bird of freedom" and sacred bird of the ancient Maya civilization. Vividly illustrating the plantation's pride in its product and attention to detail, Finca Dos Maria staff will hand-paint the Quetzal bird symbol on each of the farm's coffee bags before they are transported to Diedrich Coffee's Southern California headquarters.

Finca Dos Marias, available only until November 25 or while supplies last, sells for $13.50 per pound and is available at all Diedrich Coffee coffeehouses, by mail order through the company's Web site at www.diedrich.com and by telephone at 800/354-JAVA (5282). Consumers who have questions about Finca Dos Marias can call 800/729-8114 to speak to one of the plantation's coffee specialists.

Diedrich Coffee, with headquarters in Irvine, specializes in sourcing and custom roasting the world's highest quality coffees and offering them to customers through its coffeehouses, via wholesale and via mail order. Diedrich Coffee operates 36 coffeehouses in California, Colorado and Texas, and seven cart operations in California.

Diedrich Coffee has been publicly traded on NASDAQ since September 1996. For more information about Diedrich Coffee, call 800/354-5282 or visit its Web site at www.diedrich.com.

(a) Sustainable coffee is produced on plantations where the grower strives to maintain the natural balance of nature through the use of organic recycling, reforestation and an absolute respect for the preservation of the environment.