In the world's first-ever internet auction for specialty coffee, Diedrich Coffee (Nasdaq: DDRX) provided the winning bid for the entire lot of the #1 ranked Brazilian gourmet coffee: Fazenda Estiva. The blind auction received a great amount of interest internationally, with the final prices reaching record levels.

Only the top ten Brazilian specialty coffees were offered in the December auction. These top ten were selected in the first Brazilian gourmet coffee competition known as "Best of Brazil." In an unprecedented collaboration, several international organizations including the Specialty Coffee Association of America, the International Coffee Organization, and the Common Fund for Commodities, worked together with the Brazil Gourmet Project to find the best coffee grown in Brazil. The judging took place in October 1999 with a jury of 14 international coffee experts including Martin Diedrich, founder of Diedrich Coffee, as one of the jurors. While over 300 coffees were submitted for review, only ten coffees were chosen to receive the honor known as "The Cup of Excellence." From these, the expert jury then determined the number one ranked coffee to be "Fazenda Estiva" estate coffee.

"I searched for over ten years for an exceptional Brazilian Coffee that could be specially featured in our coffeehouses, but I was constantly disappointed until we found Fazenda Estiva at the competition," according to Martin Diedrich, chief coffee officer and founder of Diedrich Coffee. "Once I found such a spectacular Brazilian, I was determined to make the winning bid in the auction." Diedrich added that while Brazil produces about a third of the world's coffee supply, historically it has not been known for specialty grade coffee production.

Fazenda Estiva, the award winning estate coffee, is offered exclusively at Diedrich Coffee coffeehouses starting April 13th in Southern California, Denver, Houston, and at Diedrich Coffee People coffeehouses in Portland. Diedrich Coffee Plantation coffeehouses in Arizona will carry the coffee this May. Fazenda Estiva is also available through mail order at 1-877-872-9475 or over the web at www.diedrich.com.

Fazenda Estiva is offered at $13.95 per pound, and $7.25 for a half pound. The coffee is bright, crisp and lively. A medium roast brings out its floral aroma, its spicy tones, and its sweet, mouth-filling finish. It is a limited reserve coffee, and will be available only while supplies last.

Estate coffees, which are becoming much sought after among coffee-lovers and connoisseurs in the U.S., are those grown and produced on one coffee farm, often run for generations by families who are dedicated to exacting standards. Such farms generally have small yields and harvest just once per year so the coffee produced is not widely distributed, similar to estate wines. Diedrich Coffee, which offers approximately six to eight Limited Edition Estate coffees to customers each year recommends that consumers look for the words 'Estate Coffee' and the specific name of the estate on the label to be sure that's what they are getting.

Diedrich Coffee, Inc. is the nation's second largest retailer in the specialty coffee market with 363 outlets in 38 states and nine foreign countries. The company's primary brands are Diedrich Coffee coffeehouses and Gloria Jean's Coffees, the nation's leading chain of mall-based coffee stores. Headquartered in Irvine, Calif., Diedrich Coffee specializes in sourcing and custom roasting the world's highest quality coffees and offering them to customers through its coffeehouses and mall stores and via wholesale, mail order and its website. For more information about Diedrich Coffee, call 1-800-354-5282, or visit the company's Web site at www.diedrich.com.