Tully's Coffee has acquired the Los Angeles Coffee Station stores, which operate under the name Grand Central Coffee, in a transaction finalized on September 29, 2000.

With the acquisition of the Coffee Station stores, Tully's will enter the Los Angeles market with three existing prominent locations prior to the opening of the currently scheduled 18 Tully's locations before the end of the year.

Strategically located in the greater Los Angeles area, each of the three Coffee Station locations will become signature Tully's Coffee stores. Serving as Tully's official entry into the Los Angeles market, store locations will include sites at the historic Hollywood Roosevelt Hotel, Cedar Sinai Hospital and MGM offices in Santa Monica.

The new store locations will be renovated to feature Tully's signature trade dress, including a warm color-scheme with wood cabinetry, slate tile flooring and eclectic hand-crafted leather and wicker furniture. Additionally, all retail locations will include Tully's customary line of retail items from Krups, Bodum, Nissan and Brita, as well as ceramic mugs, plates and other coffee accessories.

"Acquiring these prime retail locations provides for a perfect entry for Tully's into the Los Angeles market," said Tom O'Keefe, Founder, Chairman and CEO of Tully's Coffee. "Tully's upholds a strong commitment to our employees, our customers and our communities, and I am confident that the transition from Coffee Station to Tully's will not affect the service and quality that loyal Coffee Station customers have come to expect. We will continue our strategy for aggressive growth and strive to locate new stores next to, or across the street from, every Starbucks to offer what we believe is a warmer cup of coffee!"

Founded in 1992 by Tom O'Keefe, Tully's Coffee Corporation is the third largest company-owned specialty coffee retailer in the nation. Tully's Coffee currently has 120 locations and 45 signed leases for future stores in Washington, California, Idaho, Japan, Singapore, Taiwan and Sweden. Tully's corporate headquarters and roasting plant are located in the Seattle landmark, former Rainier Brewery facility, at 3100 Airport Way South, in Seattle, Wash., USA. For more information, call 800/96-TULLY or visit Tully's Web site at www.tullys.com.