Peet's Coffee & Tea, Inc. Discusses Fourth Quarter 2001, Year-End Performance and Guidance for Fiscal Year 2002

EMERYVILLE, CA - January 14, 2002 - Peet's Coffee & Tea, Inc. (NASDAQ: PEET), a specialty coffee roaster and marketer, today announced that it expects to meet its planned fourth quarter 2001 earnings and revenue targets.  As a result, the company also plans to meet its year-end revenue and earnings projections for 2001.

"We are pleased with our expected earnings performance for the quarter and our estimated earnings and revenue results for the entire year," said Christopher P. Mottern, president and chief executive officer of Peet's Coffee & Tea, Inc. "  Our fourth quarter revenues were strong across all channels of distribution, and our holiday marketing and promotional programs were well received by customers."

The company also announced today that it has established guidance for fiscal year 2002. Based on current projections, the company estimates that 2002 earnings will range between $0.35 to $0.40 per share.  Revenue for the year is expected to increase 10 to 13 percent.

"Our focus on multi-channel revenue growth remains our primary objective for 2002," continued Mr. Mottern.  "Earnings should grow at a faster pace than revenues as we continue to leverage our existing infrastructure and overhead."

Peet's Coffee & Tea, Inc. Q4 & 2001 Year-End Earnings Conference CallThe company will report its fourth quarter and 2001 year-end earnings via conference call on Thursday, February 28, 2002. The teleconference call will begin at 2 p.m. PST/5 p.m. EST. The call will be simultaneously webcasted on Peet's Web site at www.peets.com. A news release outlining the financial results will be distributed publicly an hour prior to the call.

The teleconference can be accessed by calling 1-800-289-0468. A replay of the teleconference will be available 90 minutes after the end of the call at 1-888-203-1112, using access code 662693. The recording will be archived through midnight EST on Thursday, March 7, 2002.

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 60 company-owned stores in four states. Peet's is committed to strategically growing its business and to maintaining a unique culture and focus on customer satisfaction. For information about Peet's Coffee & Tea, Inc., visit www.peets.com or call 1-800-999-2132.  Peet's Coffee & Tea, Inc. 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.  Because of the uncertainties inherent in these forward-looking statements, our actual results could differ materially from those set forth in forward-looking statements. The Company's estimates regarding our 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, coffee and other raw material prices and availability, successful execution of strategies and plans for expansion, competition, general economic conditions, the popularity of specialty coffee due to consumer trends, health factors or other issues, as well as other risk factors as described more fully in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K filed on April 2, 2001.