Peet's Coffee & Tea, Inc. Introduces ''Peet's at Home;'' Celebrate the Holidays with Family and Friends by Sharing the Gift of Peet's.

EMERYVILLE, Calif. -- Peet's Coffee & Tea, Inc. (Nasdaq:PEET), a specialty coffee roaster and marketer, today announced the introduction of its 2004 "Peet's at Home" holiday program. This celebration of sharing and enjoying Peet's in the comfort of the home with family and friends begins November 1 and continues through the end of December.

The centerpiece of the program is the company's core holiday offerings, Holiday Blend coffee and Holiday Breakfast Blend tea, which represent the world's finest coffee and tea lots of the year, hand-selected by Peet's experts and skillfully blended for perfect balance of flavor, aroma and body. These offerings will be complemented by coffee and tea gift sets, specially designed by Peet's, to enhance the enjoyment of a perfectly brewed cup of coffee or tea at home. In addition, Peet's will introduce a new "Peet's at Home" delivery tour for retail store customers. This limited offering gift will make it easier than ever for the company's store customers to send Peet's fresh, deep-roasted coffee to the doorsteps of family and friends, wherever they may live.

New online services at www.peets.com include a custom gift box program that enables customers to pair Holiday Blend coffee with a number of complementary items and a "multi-ship" feature that allows customers to select one gift item and ship to several recipients on one simple order form.

"This year's Holiday Blend delivers the incredible body and complexity with the pure and fresh flavors our customers have come to expect," said Doug Welsh, vice president of coffee, Peet's Coffee & Tea, Inc. "We are especially proud of this year's blend because it also features a meticulously cared for Nicaragua coffee crafted by Las Hermanas -- an all-women cooperative group of coffee growers with whom we have developed a very special partnership with over the last three years."

"The key to Holiday Breakfast Blend tea is selecting lots from specific estates that carry the right degree of pungency, sweetness and fragrance," said Eliot Jordan, director of tea, Peet's Coffee & Tea, Inc. "We've blended some exceptional lots in this year's blend that will satisfy the most discerning tea drinker's palate."

Holiday Blend Coffee

The extraordinary coffee of Nicaragua Las Hermanas is at the heart of 2004 Holiday Blend. Sweet and balanced, Las Hermanas is rounded out by a specially cured Sumatra for concentrated flavor, syrupy and spicy aroma, and a Guatemala Antigua that levels the taste buds with layers of flavor, acidity and a bolt of bittersweet chocolate. Holiday Blend coffee is priced at $13.95 per pound or $14.95 per pound for Decaffeinated Holiday Blend. Both are available at all Peet's retail stores, online at www.peets.com and through mail order at 1-800-999-2132. Holiday Blend is also available in 12 oz. bags at select grocery stores nationwide and at Peet's locations within Larry's Markets(TM).

Holiday Breakfast Blend Tea

This year's Holiday Breakfast Blend tea features a new crop Darjeeling whole-leaf tea that lends distinctively bright, floral flavors and a hint of Muscat grape. For body and complexity, a blonde-tipped Yunnan is added along with a special reserve Keemun. The cup is complex with incredibly nutty and sweet thickness infused with piney, smokey aroma. Peet's Holiday Breakfast Blend tea is priced at $11.95 per 4-ounce package or $9.95 per box of 25 tea bags. It is available to purchase at all Peet's retail stores nationwide, at Peet's locations inside Larry's Markets(TM), online at www.peets.com and through mail order at 1-800-999-2132.

Send Peet's Home for the Holidays -- Introducing the Peet's Bean Tour Card

One of the company's most popular holiday gifts each year delivered fresh to the home or office: the Peet's Bean Tour Card is available to purchase in Peet's retail stores and Peet's stores within Larry's Markets(TM), beginning November 15, and features six months of coffee for $99.00 including shipping. The bean tour is redeemable at www.peets.com or by calling 1-800-999-2132. As a special holiday bonus, store customers will receive a $5.00 pre-loaded Peet's card for every bean tour purchased through the end of December.

Celebrate the Gift of Peet's at Home for the Holidays

For coffee and tea lovers, Peet's fresh deep-roasted coffees and hand-selected teas make distinctive holiday gifts to enjoy throughout the winter season. This year choose from an exclusive selection of coffee and tea gift sets, samplers, accessories and Peet's sweets, all presented in festive packaging.

Contribute to Local and Global Communities -- a Peet's Community Tradition

On December 24, 2004, Peet's will offer free brewed coffee in all of its stores and will accept donations to local non-profit organizations chosen by the employees of each store. Additionally, Peet's will match the donations that each store receives (up to $1,000.00 per store). Established in 1986, this annual tradition brings together the company, its employees and customers on one very special day to celebrate community and support local non-profit organizations. In 2003, more than $115,000 was raised and donated to local non-profit organizations.

The company will also continue to contribute to the global communities where it does business, through grants to its international partners Coffee Kids, Global Education Partnership and TechnoServe.

About Peet's Coffee & Tea, Inc.

Founded in Berkeley, Calif., in 1966, Peet's Coffee & Tea, Inc. is a specialty coffee roaster and marketer of fresh, deep-roasted whole bean coffee for home and office enjoyment. Peet's fresh-roasted coffee, hand-selected tea and related items are sold in several distribution channels including specialty grocery and gourmet food stores, online and mail order, office and restaurant accounts and 88 company-owned stores in seven states. For information about Peet's Coffee & Tea, visit www.peets.com or call 1-800-999-2132. Peet's Coffee & Tea shares are traded under the symbol PEET.

This press release contains statements that are not based on historical fact and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including those relating to earnings and sale guidance for 2004 and expected new store openings in 2004. Because of the uncertainties inherent in these forward-looking statements, the Company's actual results could differ materially from those set forth in forward-looking statements. The Company's estimates regarding its operations and financial results are based on currently available operating, financial and competitive information. Actual future results and trends may differ materially depending on a variety of factors including, but not limited to, risks arising from accounting adjustments; the Company's ability to implement its business strategy, attract and retain customers, and obtain and expand its market presence in new geographic regions; the availability and cost of high quality Arabic coffee beans; consumer's tastes and preferences; and competition in its market as well as other risk factors as described more fully in the Company's filing with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 28, 2003.