SBUX ...In Howard We Trust

Text of Starbucks Announcement on March 19, 2008

Starbucks Unveils New Strategic Initiatives To Transform and Innovate the Customer Experience Business Wire via Dow Jones

Also Announces Acquisition of The Coffee Equipment Company and its State of the Art Clover(R) Brewing System

SEATTLE -- March 19, 2008

With more than 6,000 shareholders in attendance, Starbucks Coffee Company (NASDAQ: SBUX) today unveiled a series of innovative customer-facing initiatives at its Annual Meeting of Shareholders. Howard Schultz, chairman, president and ceo, shared his vision for transforming the Starbucks customer experience and reinforcing a strong foundation from which to grow. The announcements marked the next stage of Starbucks transformation following nearly three months of passionate work that began with Schultz's return as ceo on January 7.

Beyond the five initiatives the company said it would deliver, Schultz also announced that Starbucks had signed an agreement to acquire The Coffee Equipment Company and its Clover(R) brewing system.

"Eleven weeks ago, I made a personal commitment to every one of our customers and partners (employees) to reaffirm our place as the world's coffee authority," said Schultz. "By embracing our heritage, returning to our core -- all things coffee -- and our relentless commitment to innovation, we will reignite the emotional connection we have with our customers and transform the Starbucks Experience. I am confident that the ground-breaking initiatives we've announced today demonstrate our laser focus on living up to that commitment. We know that this is just the beginning, but we also know that there has never been a more exhilarating or promising time in our history."

At the Annual Meeting, Starbucks unveiled the following new initiatives. They are focused on improving the current state of the U.S. business, re-igniting the emotional attachment with customers and making foundational changes for the long term:

-- A proprietary and revolutionary in-store Clover(R) brewing system that delivers the best cup of brewed coffee available anywhere;

-- A complete reinvention of brewed coffee in-store, that will be brought to life by baristas across the U.S., who will scoop and grind a new unique coffee blend, connecting customers to the early days of Starbucks;

-- The introduction of a new state-of-the-art espresso system that provides the perfect shot every time and helps facilitate the critical connection between barista and customer;

-- The first phase of a Starbucks Card Rewards program, rewarding registered cardholders and providing unique new benefits when using their cards in Starbucks stores;

-- The launch of MyStarbucksIdea.com, Starbucks first online community, that takes the Starbucks Experience outside the store and enables customers to play a role in shaping the company's future; and,

-- An expanded relationship with Conservation International that enhances Starbucks 37-year commitment to ethically sourcing the world's finest coffees and reaffirms Starbucks leadership position in sustainable sourcing and climate preservation.

"There have been times in our history where others questioned whether we had reached our limit -- yet time and time again, we have responded by reaching even greater heights," Schultz said. "Today, we again demonstrated our commitment to surpassing the expectations of every one of our customers, shareholders and partners. We hope we've given everyone a reason to believe -- not only in the endurance of the Starbucks legacy, but also in our ability to continually raise the bar for what it means to be the world's leading roaster and retailer of specialty coffee."

BACKGROUND ON THE NEW INITIATIVES

The Next Coffee Revolution -- Clover(R) Brewing System

Starbucks has entered into an agreement to acquire The Coffee Equipment Company, whereby Starbucks will become the exclusive provider of the revolutionary Clover(R) brewing system. With its proprietary brewing process, the Clover(R) machine has quickly become regarded as the gold standard in innovation in brewing equipment.

Clover's unique brewing process is similar to the coffee press method, but utilizes a special vacuum technology that brings out the complex, rich and distinctive flavors of some of Starbucks rarest and most exotic coffees -- such as Aged Sumatra and Ethiopia Yergacheffe. The Clover(R) brewing system also adds to the theater and drama of the coffee experience through its highly visual brewing method.

Some Starbucks stores in Seattle and Boston are currently using Clover(R) brewing systems and the Company plans to further accelerate the rollout of the machines in select U.S. and international markets. Financial terms of the transaction were not disclosed.

"This acquisition will provide us with an opportunity to give customers individually brewed cups of some of Starbucks most exotic coffees," said Schultz. "In my over 25 years with Starbucks, the Clover machine unequivocally delivers the best cup of brewed coffee I have ever tasted."

The Reinvention of Brewed Coffee: Introducing Pike Place Roast

Starbucks challenged its coffee and roasting teams to create the world's most exceptional coffee blends. The result of those efforts is the new Pike Place Roast. Beginning in mid-April, this unique new coffee will be brewed in every U.S. company-operated store every day, giving customers a unique, consistent and fresh brewed coffee experience.

Pike Place Roast exemplifies Starbucks 37-year heritage and expertise in buying, blending and roasting the world's finest coffees. Starbucks roasts Pike Place Roast to be smooth and bold, bringing to life the cocoa and toasted nut flavors in the coffee.

Also next month, all Starbucks company-operated stores in the U.S. will further elevate the customer experience when they begin to scoop and grind the beans they use for brewed coffee. To enable customers to enjoy the freshest, high-quality cup of brewed coffee, stores also will brew smaller batches with a hold time of no more than 30 minutes. Licensed stores in the U.S., as well as Starbucks locations outside the U.S., also will move to a 30-minute hold time over the coming months.

"We are returning to the very best elements of our heritage and bringing back the simple romance and excitement of coffee," said Schultz. "Since 1971, we have sourced, roasted and sold the world's finest coffees. By highlighting that history through Pike Place Roast, and bringing back the sounds and aromas of the coffeehouse, we are raising the bar on what it means to serve the perfect cup of coffee."

Introduction of the Next Generation Espresso Machine: Mastrena(TM)

Over the last several months, Starbucks stores around the world have taken great strides to ensure that every customer receives a drink that exceeds their expectations, every time. From an unprecedented education and training initiative focused on espresso excellence, to the upgrading of Starbucks Verisimo(R) espresso machines in U.S. and Canada stores to ensure the highest-quality espresso with each shot, every partner at Starbucks has demonstrated a relentless commitment to quality.

As part of those continuing efforts, Starbucks today unveiled the Mastrena(TM), the next generation of world-class espresso machines exclusive to Starbucks stores. The Mastrena(TM) represents more than five years of development and collaboration between Starbucks and Thermoplan AG, one of the world's leading espresso machine manufacturers.

The Mastrena(TM) is the gold standard among espresso machines. It grinds every shot to order and its other many exceptional features result in superior consistency of espresso shots, greater options for milk steaming and customization, and a lower profile to enable baristas to connect visually with customers for personal, immediate interaction and service.

As part of its investment in delivering a world-class in-store experience, Starbucks is planning an aggressive rollout of the Mastrena(TM). By the end of the year, more than 30% of U.S. company-operated stores will have the new machine and 75% will have the Mastrena(TM) by the end of 2010. Additionally, new international stores will receive the Mastrena(TM) starting in the summer of 2008, and all international stores will complete the Verisimo(R) upgrade by the end of this calendar year.

"With the Mastrena(TM) and the upgraded Verisimo, there is no doubt that our customers will enjoy the finest shots of espresso in the world," continued Schultz. "We have brought the art of espresso to the world, and by providing our baristas with the best training and tools, we will continue to define the industry standard."

Adding Rewards to the Starbucks Card

Since its introduction in 2001, the Starbucks Card has revolutionized the way customers pay for their daily coffee experience. With more than 193 million cards issued in the U.S. and Canada since its introduction, there are approximately five million active Starbucks Card holders at any given time. This spring, every registered card holder will enjoy an elevated experience every time they use their cards.

In April, Starbucks will begin providing registered Starbucks Card holders these immediate, value-added benefits when they use their card at participating Starbucks stores in the United States and Canada:

-- Complimentary customization on select syrups (including flavors such as vanilla, hazelnut and cinnamon) and milk alternatives (such as soy or half and half). For instance, a Tall Vanilla Soy Latte would be the same price as a regular Tall Cafe Latte because the soy and the vanilla are free.

-- Complimentary Tall beverage of choice (including Frappuccino(R) blended beverages) with the purchase of one pound of whole bean coffee (on the same visit).

-- Free refills on brewed coffee (on the same visit).

-- Two hours daily of free, in-store Wi-Fi, starting this spring in company-operated stores in the U.S. (per registered cardholder).

-- The opportunity to join Starbucks in supporting charitable causes.

"Already, one in seven customers uses the Starbucks Card, and now we are taking the first steps toward recognizing these customers by providing them value beyond any other coffeehouse," said Schultz. "It is the personal relationship our customers have with our brand, our stores and our baristas that is the foundation of our success. Through this initiative, we are making it even easier to make the Starbucks Experience your own."

Creating an Online Starbucks Community Network at MyStarbucksIdea.com

The Starbucks Experience grows, in part, from the unique combination of a shared passion for coffee and the exchange of great ideas. For years, Starbucks stores have served as the center of vibrant communities, welcoming customers and encouraging creativity and dialogue. Starbucks today announced the extension of that community beyond the doors of its stores with the launch of MyStarbucksIdea.com.

Found at www.mystarbucksidea.com, the site is Starbucks first online community and enables customers to share their ideas, engage in conversations and play a role in shaping Starbucks future. This new community seeks to strengthen Starbucks connection with customers by:

-- Establishing a meaningful dialogue between and among community members and Starbucks, extending the coffeehouse experience outside store walls;

-- Creating a new space for customers to share ideas and be part of shaping Starbucks in the future; and,

-- Building an open forum to share the Starbucks story in a way that fosters authenticity, transparency and leadership in conversations about Starbucks.

The new website launches today and features an area -- Ideas Into Action -- where customers can track the progress of ideas that Starbucks is working to bring to life. Starbucks is also launching a site for Starbucks partners to share their ideas and engage in conversations.

"We engage in millions of conversations with our customers everyday, and those conversations and ideas have helped shape the company we are today," said Schultz. "With the launch of MyStarbucksIdea, we are extending the Starbucks community online and creating a dynamic forum that enables us to capture and act upon our customers' best ideas."

Taking Ethical Sourcing to New Levels

Today, Starbucks also expanded its 37-year commitment to ethically sourced coffee with a renewed relationship with Conservation International (CI).

Starbucks and CI began working together more than a decade ago to further integrate environmental conservation principles into Starbucks coffee-buying practices to ensure the sustainable production of high-quality coffee. These efforts became the foundation for C.A.F.E. (Coffee and Farmer Equity) Practices, a comprehensive program that addresses the environmental, social and economic transparency issues that are so critical to the long term health of the farmers and suppliers with whom they work.

Starbucks today unveiled a renewed five-year global commitment with CI to tackle climate change, by working together to support farmers who are preserving forests in coffee regions. The project will begin with two launch sites in Sumatra, Indonesia, and Chiapas, Mexico.

To directly link customers to this effort, the company also unveiled a new mark for its coffee. This mark symbolizes Starbucks partnership with CI and its commitment to coffee that is responsibly grown, ethically sourced and proudly served. Starbucks will work with its suppliers and CI to meet the following goals to rollout the mark:

-- By mid-April 2008, our new brewed coffee offering, Pike Place Roast, served daily at U.S. company-operated stores will qualify for the new mark.

-- By mid-April 2008, all whole bean espresso and espresso-based drinks in Europe, Middle East and Africa stores will qualify for the new mark.

-- By March 2009, all whole bean espresso and espresso-based drinks in all U.S. stores will qualify for the new mark.

-- By the end of 2009, we intend to have all espresso-based drinks qualify for this mark.

-- The ultimate goal is for all Starbucks(R) coffee to qualify for this mark.

"This is a pioneering agreement built on the foundation of our 10-year relationship," stated Schultz. "It will allow us to have a positive impact on one of the global community's most pressing issues."

"We are excited to grow this relationship, and prouder still to demonstrate our commitment by having Pike Place Roast be the first coffee to carry the new mark that symbolizes our renewed commitment," added Schultz.

For more information, please visit www.conservation.org.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest quality arabica coffee in the world. Today, with nearly 16,000 stores and more than 170,000 partners (employees) in 44 countries, Starbucks is the leading roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.

Ramble On...

As a big fan of the STARBUCKS (and SBUX) brand, I am happy to see former Seattle SuperSonics team owner Howard Schultz back at the CEO spot for the Seattle-based coffee giant. The SBUX stock tumbled in '07 but rebounded +9% on the news of Schultz' reinstatement.

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What is more newsworthy -- the fact that Jim Rice earned 392 votes, 14 shy of the 406 he needed for induction to the Baseball Hall of Fame or the fact that Chuck Knoblauch got one vote?

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When Harvard basketball players 'walk through that locker door' they are inspired by the following words on a small sign:

Defend
Box Out
Sprint
Unselfish
Have Fun

Tommy Amaker keeps it simple, just as Coach K does at Duke.

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I provided some insight into the great "Hot Stove, Cool Music" weekend, but here's the official Boston.com review:

Rocking music and baseball talk fan the flames of Hot Stove
By Sarah Rodman, Globe Staff | January 8, 2008

Still basking in the glow of the Red Sox 2007 World Series championship, the eighth-annual winter edition of the Hot Stove Cool Music benefit concert at the Paradise Sunday night kicked off 2008 with the same winning team attitude.

The epic, collegial five-hour show featured a potpourri of musicians sitting in on one another's sets resulting in a mess of good vibes, good music, good humor, and a little baseball talk, courtesy of event cofounder/ESPN baseball analyst Peter Gammons and part-time rocker/Sox general manager Theo Epstein. (The latter also graciously fielded nonbaseball questions from the sold-out crowd, and for the record, on Sunday night, it was boxers.)

The Elan Trotman band got things off to a spirited start with extended instrumental funk and rock workouts of tunes like Gnarls Barkley's "Crazy." Murder Capital of the World followed with a dose of power pop, including a take on T. Rex's "20th Century Boy."

Fluffy of hair and grungy of inclination, former Sox ace Bronson Arroyo showed off, appropriately, his excellent pitch and a willingness to experiment during his set of Fray and Pearl Jam covers with the aid of a string quartet.

Lori McKenna and her top-notch band injected a little twang into the proceedings and welcomed Kay Hanley, Bill Janovitz of Buffalo Tom, and others onto the stage for a soaring rendition of the Band's "It Makes No Difference," which was one of the night's highlights.

A raucous set from Gammons's Hot Stove All-Stars proved the most eclectic and electric treat of the evening, as a huge band, including J. Geils Band keyboardist Seth Justman, Epstein on guitar, Red Sox front-of-house guy Zack Scott on harmonica, the True Loves horns, and the rhythm section from the Gentlemen Pete Caldes and Ed Valauskas all converging on stage.

Among the peaks was Gammons's scathing new rocker about the Mitchell Report, Paul Barrere of Little Feat blazing through that band's sprawling "Dixie Chicken," and Janovitz contributing sizzling takes on Neil Young's "Powderfinger" and the Stones's "Happy" with guest tambourine player Tiffany Ortiz. (She reported that her hubby, David "Big Papi" Ortiz, is recovering nicely from surgery.) And Mighty Mighty Bosstones mouthpiece Dicky Barrett fronted the crew for a run-through of Geils's "Give It to Me."

Boston Celtics managing partner Wyc Grousbeck's band, French Lick, dashed genially through good-time covers like "I Saw Her Standing There." Fresh off the "Hannah Montana" tour, Hanley sounded tough and true in her own set, which included the Letters to Cleo chestnut "Veda Very Shining." Eli "Paperboy" Reed & the True Loves kept the energy going with their classic soul and blues routine.

Dear Leader capped the night in grandiose form with singer Aaron Perrino belting out intelligent rock anthems in his best high-dudgeon wail.

Emcee Mike O'Malley gets better and better at the difficult task of keeping the show flowing by interviewing the participants and serving as auctioneer during set breaks.

In addition to the stage auctions, which racked up more than $20,000, the Paradise Lounge was set up with silent-auction items, raffles, and opportunities for patrons to get their picture snapped with the 2007 World Series trophy. More than $200,000 was raised from the weekend festivities to benefit the Jimmy Fund and Epstein's Foundation to be Named Later.

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I was very impressed with the "Hot Stove" concept and was equally impressed with Paul Epstein, known to so many as, "Theo's brother." I like the fact I am getting to know him as "Paul Epstein," husband, father, proud native of Boston who is giving back to the community. The guy is as sharp as they come and has a very open, natural, first-class way about him. Class act, all the way. The "Foundation to be Named Laster" is in very good hands. And, one other note: Peter Gammons can play. He deserves some serious credit.

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Last bit on the Hot Stove, Cool Music these are the lyrics of a song performed by Gammons:

It is called, "THE MITCHELL REPORT"

"I was a Winnipeg Goldeye for two grand a year
Riding high pollutin' buses to Shaumburg, Illinois
I weighed one sixty three, batted two eighty five
Supporting three kids in Topeka and two ex-wives
Workin' winter midnights, dreamed of getting jacked
Tryin' to hit the ball to the warning track
Bought me a Bowflex, drank thousands of shakes
Got a tryout with a scout who said, "it's only talent you lack."
Talent I lacked

Chorus
"Canseco told Mitchell while on the Exxon Valdez
'I can make you millions, help you throw 93
'Bob Heise'd been Jim Rice if he knew what I know'
And there's never been a low as low as Canseco."

"Met a street corner agent made a dive for my dime
Gave me 30 pounds of muscle in ten weeks time
Winstrol, Anadrol, no holds barred
And a T-shirt readin' "hammer like a porn star"
Ten bombs in training camp got me Triple-A
Eight more in April brought me big league quail
One custom Hummer, three dozen suits
With my agent-- now a trainer-- along for the hoot
Along for the hoot

Chorus
Canseco told Mitchell while on the Exxon Valdez
'I can make you millions, help you throw 93
'Bob Heise'd been Jim Rice if he knew what I know'
And there's never been a low as low as Canseco."


"Then one day I got a call from Mitchell's henchmen
Seems my name showed up where it shouldn't have been
Now I'm back at the Wal-Mart working midnight to nine
Playing beer league softball in lieu of ten years time
In lieu of ten years time
Chorus
Canseco told Mitchell while on the Exxon Valdez
'I can make you millions, help you throw 93
'Bob Heise'd been Jim Rice if he knew what I know'
And there's never been a low as low as Canseco."

Words and music by Peter Gammons...

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Christmas is over and it's time for the Minnesota Wild to get new uniforms.

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If MSG gets a tax break, I should get a tax break.

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In case you missed it the other night against Denver, the Phoenix Suns shot 20-31 from three-point range and beat the Nuggets 137-115. Shawn Marion blocked six shots.

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The candidates are trying to compete in the various primaries and must stay fit. Here's how Barack Obama does it, according to the Chicago Tribune:

Ex-Duke athlete and 'good people person' Reggie Love helps keep senator fit, fed and hydrated on trail
By John McCormick

Reggie Love makes sure the water bottle is always full, the PowerBars are stocked and that the boss gets out of bed on time for his daily exercise regimen.

The former football and basketball player at Duke University is what presidential campaigns call a "body man."

Every major candidate has one. Love, 25, has walked -- literally -- in Sen. Barack Obama's shadow since February, acting as something of a traveling valet to make sure the Illinois Democrat's personal needs are met.

He snaps photos when supporters ask that their picture be taken with the candidate, makes sure there is always a Sharpie marker at the ready for autographs and keeps the candidate's favorite music loaded on the iPod.

Love also plays basketball with the candidate whenever they can squeeze in a game. And no, he says, he never lets the boss win on purpose.

"There is nothing worse than losing to Barack Obama," Love said Wednesday as he waited for Obama to finish a fundraiser at a home in Tiburon. "You never hear the end of it."

A top receiver on Duke's football team and a member of its 2001 national championship basketball team, Love does not fit the stereotype of the young Washington geek who typically fills the body man role.

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