Starbucks Acquires Key Operating Rights of Beijing and Tianjin to Handin Asia Pacific

Acquisition represents Starbucks' development strategy and commitment to the Chinese market

Beijing, October 24, 2006 - Starbucks (Nasdaq: SBUX) Announces Acquisition of High Grown Investment Group, a Controlling Shareholder of Beijing Meida Coffee Co., Ltd. ("Beijing Meidai Coffee") from Handy Asia Pacific and other shareholders (Hong Kong) Co., Ltd. ownership. Beijing Meida Coffee is a licensed licensee of Starbucks Coffee International Limited and operates Starbucks' more than 60 retail stores in Beijing and Tianjin. However, the transaction details have not been disclosed. Beijing Sanyuan Company still holds minority interests in Beijing Meidai Coffee.

H&Q Asia Pacific is Asia Pacific's leading private equity investment fund. Through its interest in Beijing Meidai Coffee, H&Q Asia Pacific took the lead in leading Starbucks Coffee into the Chinese market and opened its first Beijing branch in 1999. H&Q Asia Pacific and other investment partners have worked together to successfully develop Starbucks from one store in 1999 to more than 60 stores by the end of August this year.

Wang Jinlong, President of Starbucks Greater China (Wang Jinlong News, Wang Jinlong) said: “We are very pleased to significantly increase our controlling stake in Beijing and Tianjin. This acquisition reflects our commitment to the Chinese market and helps us further improve operational efficiency. Accelerate the development in China and contribute to the establishment of leisure living environment in Beijing and Tianjin. In addition, based on the close relationship established between Beijing Mead Coffee and local partners (employees) and customers, the transaction will help Starbucks further Integrate with the local market. Now there are two years away from the 2008 Beijing Olympic Games, we will strive to accelerate the pace of development in this important market."

Dr. Xu Dalin, president and founder of H&Q Asia Pacific, stated: “This transaction shows the advantages of the Starbucks brand. We successfully introduced Starbucks into the Chinese market and established it as a brand of high-quality coffee, which is recognized by the market and well received by customers. Satisfied, we are very proud of this.In addition to confirming that consumer brands are important to the Chinese market, this transaction also confirms that private equity investment funds such as Handing Asia Pacific have helped to win market recognition for leading brands like Starbucks. Important role."

Since opening its first coffee shop in Beijing in 1999, Starbucks has become a part of the community in China. As of October 1, 2006, Starbucks provided customers with "Starbucks Experience" in more than 430 coffee shops in Greater China, including more than 190 coffee shops in 19 cities in mainland China. Starbucks is also actively developing and participating in some local community projects. One of the most well-known is the Starbucks China Education Project with a total investment of 40 million yuan (US$5 million). This is a project jointly developed by Starbucks in September 2005 with Give2Asia, a non-profit organization established by the Asia Foundation in the United States, to promote charitable work. The China Education Project aims to improve the education situation in China, especially helping poor students in rural areas in China.

Starbucks Introduction

Through the enthusiastic dedication of partners (employees), Starbucks has enabled people in 37 countries around the world to drink Starbucks coffee of the same quality at the same time. Starbucks offers the best coffee in the world, with more than 12,000 retail stores in North America, Latin America, Europe, the Middle East and the Pacific Rim. The company is committed to providing customers with the highest quality coffee and personal connections through the unique "Starbucks Experience" while working hard to improve the social, environmental and economic conditions of partners, coffee growers, coffee country of origin and serving communities. By partnering with Ethos Water, Starbucks has long integrated social responsibility into all aspects of its business. The company manufactures and sells bottled Starbucks Frappuccino® coffee beverages, Starbucks DoubleShot® espresso beverages and ice cream Starbucks® Superpremium ice creams through joint marketing partners, through marketing and distribution agreements in convenient locations outside retail stores. Production and sales of StarbucksTM coffee and cream liqueurs continue to surprise customers. In addition, the company also owns Tazo® Tea, Starbucks Hear MusicTM Disc, Seattle's Best Coffee and Torrefazione Italia. The unique and innovative personality of these brands has made Starbucks more deeply rooted.

Handing Asia Pacific Introduction

H&Q Asia Pacific is the leading private equity investment fund in the Asia-Pacific region and was established in 1985 by Xu Dalin and the Hambrecht & Quist Group. H&Q Asia Pacific is currently an independent private equity fund management company, managing total assets of US$2.1 billion through its offices in Silicon Valley, Hong Kong, Seoul, Shanghai, Singapore, Taipei and Tokyo. H&Q Asia Pacific invests in technology, production, consumer branded products, financial services, media and real estate and other industries. For more information, please contact the Chief Operating Officer Jarlon Tsang, email or browse.