Diedrich Coffee Inc. (Nasdaq:DDRX), a leading coffeehouse operator, franchiser, wholesaler and custom roaster of specialty coffees, Thursday announced that Robert Rodriguez, president of its Gloria Jean's Gourmet Coffees subsidiary resigned today to pursue personal interests.

Rodriguez served as president of Gloria Jean's since September of 1998. "We wish Robert well in his new endeavors and thank him for his hard work and leadership at Gloria Jean's during his tenure," said Tim Ryan, CEO and president of Diedrich Coffee. A replacement has not yet been identified.

About Diedrich Coffee

Diedrich Coffee Inc. is the nation's second largest retailer in the specialty coffee market with annual system-wide revenues in excess of $150 million annually through 362 retail locations 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.

With headquarters in Irvine, 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 Web site. For more information about Diedrich Coffee, call 800/354-5282, or visit the company's Web site at www.diedrich.com.

Forward-Looking Statements

Statements in this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and fall under the safe harbor. Actual results and financial position could differ materially from those anticipated in the forward-looking statements as a result of a number of factors, including but not limited to, the successful management of Diedrich Coffee's growth strategy, impact of competition, the availability of working capital and other risks and uncertainties described in detail under "Risk Factors and Trends Affecting Diedrich Coffee and its Business" in the company's annual report on form 10-K for the fiscal year ended Jan. 27, 1999.