Peabodys Coffee Inc., (OTCBB:PBDY) announced that it has concluded a transaction to acquire certain assets of Arrosto Coffee, Inc., a specialty coffee company operating in southern California. With the closure of this transaction, Peabodys Coffee has acquired the ability to roast its own custom coffee, substantively reducing its costs. The acquisition of the roasting plant will also support the planned entry into wholesaling and e-commerce. As part of the acquisition, Peabodys will take over the existing coffee supply contracts for the retail stores of Arrosto and the supply agreement for Koo Koo Roo and Hamburger Hamlet. Mr. Joe Konis former CEO of Arrosto coffee will join the Peabodys Coffee team and will become responsible for developing wholesaling and e-commerce. Todd Tkachuk, President/CEO of Peabodys, stated "the acquisition was a planned step to secure our supply in the fast growing US specialty coffee market - and to begin broadening our range of operations within that market." Peabodys Coffee is also continuing to explore a number of M & A opportunities in its existing "institutional" business segment. This release contains forward-looking statements. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Readers should not place undue reliance on forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.