Starbucks Signs Agreement Giving SYSCO Exclusive Foodservice Distribution Rights

HOUSTON, January 21, 2003--SYSCO Corporation (NYSE:SYY), North America's largest foodservice marketer and distributor, and Starbucks Coffee Company (NasdaqNM:SBUX), today announced an agreement granting SYSCO exclusive rights to distribute Starbucks products to non-contracted foodservice customers. This agreement will be implemented immediately by SYSCO through its 64 full-service broadline distribution locations across the United States.

Under terms of the multi-year agreement, SYSCO will be a strategic foodservice distribution partner with Starbucks, targeting a variety of potential customers such as businesses, colleges and universities, hotels, white-tablecloth restaurants and upscale casual restaurants. Starbucks will be the only premium national brand coffee actively supported by SYSCO and, in turn, Starbucks will align its current foodservice sales, service and support resources exclusively with SYSCO.
Richard J. Schnieders, SYSCO's chairman and chief executive officer, said, "The ability to leverage our sales and distribution networks with a high quality brand provides excellent growth opportunities to SYSCO and Starbucks. Both companies will benefit from the sales and market share gains that we expect to achieve. Equally important, our customers will have the opportunity to increase traffic and sales by offering the unique Starbucks products to their clientele."

"Through this agreement Starbucks can achieve a broader market presence, bringing the Starbucks Experience to a wider audience," said Jim Donald, president, Starbucks North America. "SYSCO will make ordering and delivery of our products for our foodservice customers much easier and more efficient. As we grow and expand our business in the foodservice arena, partnering with a world-class foodservice distributor, like SYSCO, will enable us both to grow and meet our goals at a faster pace."

SYSCO is the largest foodservice marketing and distribution organization in North America, generating sales of approximately $23.4 billion for fiscal year 2002 that ended June 29, 2002. Supported by more than 49,000 employees at 149 distribution locations, the company provides products and services to about 415,000 customers, including restaurants, healthcare and educational institutions, lodging establishments and other foodservice operations. The SYSCO distribution network extends throughout the United States and Canada and includes broadline companies, specialty produce, meat and hotel supply operations and SYGMA, the company's chain restaurant distribution subsidiary. For more information about SYSCO, visit the company's Internet home page at www.sysco.com.