Our Story

Our Vision To be Simply The Best™ roaster and

global retailer of specialty coffee and tea.

Our Mission To create a spirit within our Company that inspires

our Team Members to provide our customers with a

Total Quality Experience: Quality of Product, Service and Environment.

1963 Founders Herb and Mona Hyman open

first store, offering whole-bean coffee and

loose-leaf tea

1980 Multi-store expansion begins,

offering a variety of coffee and tea beverages

1989 The Coffee Bean & Tea Leaf®

invents The Original Ice Blended® Drinks

The Coffee Bean & Tea Leaf® has been innovating–and growing–since 1963. “Find Your Flavor”

isn’t just our slogan; it’s a commitment to our customers and the foundation upon which

we operate. Taste matters and so does our culinary approach to flavor. Our handcrafted

beverages can be made-to-order and customized to a customer’s preference. It’s not just about

making the perfect drink, it’s about honoring the values of the communities we serve.

Our Team Members are trained to listen and respond to each customer with

a personalized beverage that sets the standard for excellence. The Coffee Bean

& Tea Leaf® prides itself on our innovation and quality, offering one of the

most extensive selections of specialty coffee and tea from around the world.

| The first The Coffee Bean & Tea Leaf® store in Los Angeles, California Circa 1963

Company HistoryThe concept for The Coffee Bean & Tea Leaf® stores was born during a

trip the founders Herb and Mona Hyman took to Europe. After touring

the many outstanding coffee shops throughout Europe, the couple

decided to bring the specialty coffeehouse concept to America. The Coffee

Bean & Tea Leaf® was established in 1963 opening their first store in

Los Angeles, California which continues to operate today as one of our

highest volume and highest profile stores.

Over the next 35 years, Herb continued to grow his coffee business

throughout Southern California. Flavor and a handcrafted feel became

cornerstones of his business. He would blend coffee varieties per

customer requests and roast them to their liking. These personalized

requested have even been used in formulating some of our more popular

blends today. In 1996 the company was franchised in Asia. The business

did so well in Singapore and Malaysia that the company was purchased

from the Hymans and our first franchisee became the franchisor.

The Coffee Bean & Tea Leaf® has grown to be the largest and oldest

privately held specialty coffee and tea retailer in the U.S. With over

800 stores worldwide, we have a strong presence and reputation for

excellence as part of communities all over the globe. Company owned

stores are located in California, Arizona, Singapore and Malaysia. Our

growing franchised locations, include stores in

California, Hawaii, Michigan, Nevada, Texas,

Australia, Brunei, China, Egypt, India, Indonesia, Israel, East Malaysia

(Sabah), Kuwait, Malaysia, Mexico, Philippines, Qatar, Saudi Arabia, South

Korea, United Arab Emirates and Vietnam. Each year, The Coffee Bean & Tea

Leaf® serves over 100 million coffee and tea beverages worldwide.

| The first The Coffee Bean & Tea Leaf® coffee roaster (top) and weighing scale (left), circa 1963

| This page: Our Team Members build relationships

Our PeopleAt The Coffee Bean & Tea Leaf®, we put people first. From our coffee

and tea origin suppliers to our retail store Team Members and loyal

customers, we consider everyone part of our extended family. We

provide specialized training so that each Team Member is able to build

bonds of trust with our customers and their guests. By demonstrating

our Core Values (known as FROTH, or Friendly, Respect, Ownership,

Teamwork and Honesty), we inspire all employees to treat each other

with respect and to provide the Total Quality Experience our customers

have come to expect when they visit The Coffee Bean & Tea Leaf®.

Our StoresCustomers come to The Coffee Bean & Tea Leaf®

to enjoy their favorite beverages delivered with

outstanding service in a relaxing and friendly

environment. Our cafés are warm, inviting

places where everyone is welcome to hang out,

relax, and savor the best coffees and teas in

the world. Whether customers in your area

tend to zoom in for a quick cup to-go or like

to hang out and soak up the atmosphere, café

environments can be scaled and styled to suit

local customs and life styles. Team Members.

Our Team Members, baristas and café servers,

are enthusiastic and informed

aficionados carefully trained

to assist customers to

“Find their Flavor” and

favorite drinks.

1996 Singapore – the opening of

the first The Coffee Bean & Tea Leaf®

franchised store

1998 The first franchisee becomes the franchisor –

private family consortium acquire ownership of

The Coffee Bean & Tea Leaf® corporate entity.

2001 First U.S. franchise

store opens (Las Vegas, Nevada)

outside California

1998 Launches

Hot Tea Latte2004 Partners with Adopt-A-

Classroom program throughout

California, Nevada, and Arizona

2006 400th store opens

2006 Debuts new non-dairy

tea-based frozen beverage line:

Fru-Tea® Drinks

2006 500th store opens

2005 Establishes

Caring Cup Global

Charity Program

Our Coffee and TeaFor over 47 years, The Coffee Bean & Tea Leaf® has been proudly offering Simply the Best™ coffee and

teas in the world. From the mountains of Southern Colombia to the tea fields of Sri Lanka, our

expert coffee and tea buyers travel the globe to find and secure the very best crops from small

artisan farms and private estates.

From seed to cup, an equitable way to do the right thing.

At The Coffee Bean & Tea Leaf®, our passion extends far beyond the crops we cultivate and the

beverages our customers enjoy. From seed to cup, we constantly work to maintain a direct

relationship with our growing farms. Buying directly from the grower affords us exclusivity

as well as incomparable product quality. More importantly, maintaining these simple, direct

and honest relationships assures our Company, our growers and our customers a fair and

transparent supply chain.

COFFEEWe purchase specialty grade Arabica coffee beans from three distinct regions: Latin America, the Asia Pacific, and East Africa. How coffee looks, tastes and smells has much to do with where it comes from, and how it was grown. All our imported coffees have been cultivated at high altitude - between 3,500 and 6,000 feet - because cooler temperatures slow the beans’ ripening time, and create more concentrated, flavorful coffees.

We personally travel the globe to find the best quality harvests. We nurture long lasting direct relationships with our growers, going beyond fair trade, not only for the high quality of their product, but also for their Earth-friendly growing practices and social responsibility standards in particular, the conscientious way they treat their workers and families.

TEAThe Coffee Bean & Tea Leaf® commitment to quality starts with going beyond fair trade with the direct relationships we build with our tea growers, continues with the processing of our whole leaf teas, and extends to the handcrafted world-class drinks we serve in our stores.

We are very proud that many of our tea growers in countries such as Sri Lanka, India, Thailand, and Kenya practice environmental sustainability. Our growers in Thailand, for example, use peanut shells and grass to cover exposed land, reducing erosion, while preparing a healthy, robust soil for future seasons.

Our Beverage, Retail & Bakery Products

Since 1963, The Coffee Bean & Tea Leaf® has stood for fine ingredients,

great taste and innovation. We source our products from the greatest

places in the world, roast our coffees and blend our teas by hand and not

only allow our customers to customize their drinks but help them “Find

Their Flavor” by tailoring beverages exactly to their liking.

We are proud of our numerous industry firsts. The Original Ice Blended®

is the beverage that started the frozen coffee drink craze, creating a new

drink category that is now world famous.

The Coffee Bean & Tea Leaf® did not settle for syrups when customers

started requesting mochas, instead we created proprietary powders.

Our French Deluxe™ Vanilla and Special Dutch™ Chocolate powders are

industry firsts that give our coffee drinks a flavor vastly superior to any

other – creamy and smooth.

With our gourmet powders and hand blended teas as a base, the Chai

Latte and Tea Latte were invented and popularized by The Coffee Bean

& Tea Leaf® during the mid-1990’s. The unique components of our

beverages are sold in our stores and online, helping our customers enjoy

The Coffee Bean & Tea Leaf® experience at home and around the world.

Our full line of baked goods is made from the highest quality

ingredients, most of which are from our own proprietary recipes and

baked with care at our company owned kosher bakery facility in Santa

Monica, California.

From our hand crafted beverages to flavorful, freshly baked pastry,

The Coffee Bean & Tea Leaf® always delivers a Total Quality Experience.

| Top photo: Tamping of fresh espresso

| Middle photo: Unique tea blends are displayed in jars

| Bottom photo: Freshly baked goods in our case

2006 Enters new franchised territories

with store openings in Bahrain, Egypt

and Qatar, internationally, and Ralph’s,

domestically

2008 Launches made-to-order

yogurt and oatmeal breakfast

program

2007 600th store opens and for the

first time franchise stores outnumber

company stores

2008 Hits the

700 store mark

2008 Enters new franchised

territories with store openings

in India, Mexico and Vietnam

2008 Runs “Support From

Home” campaign to support

military personnel

2009 Enters new franchised

territories with store openings in Oman,

internationally, and Texas, domestically

Our Master ArtisansJay IsaisSenior Director of Coffee, Roasting, and Manufacturing

Jay combs the world’s finest coffee growing

regions, from Latin America and East Africa

to South Asia and the Pacific, sampling and

selecting the regions’ best harvests, then

overseeing our blending and roasting process.

In sourcing the world’s greatest coffees,

Jay travels from one end of the tropics to

the other, from Costa Rica and Colombia to

Ethiopia and Papua New Guinea, cultivating

close relationships with local growers. The

Coffee Bean & Tea Leaf® is proud to offer a range

of specialty grade coffees we proclaim to be

Simply the Best™.

Jay is responsible for selecting and buying

the highest-quality green coffee beans

from the world’s finest growing regions, as

well as the manufacturing, warehousing,

and worldwide distribution of our coffee

and tea products. He has over 25 years of

industry experience, holding both operations

management and buying positions in the

coffee industry. Jay is a founding member of

the Roasters Guild, a volunteer instructor

for the SCAA, a certified judge for the Cup

of Excellence® program (A.C.E.), a licensed

Q Grader, and an APICS Certified Supply

Chain Professional.

Jesse Martinez-Beltran Master Coffee Roaster

Jesse is responsible for the careful roasting

and blending of all coffee beans at our main

facility in Southern California. Over the

past 15 years, Jesse has worked diligently to

become a Master Roaster. He oversees the daily

roasting to ensure each small batch is done

to perfection. He has traveled throughout

the coffee-growing regions of the world and

served as an International Juror for The Cup

of Excellence®. He is also a member of the

Specialty Coffee Association of America’s

(SCAA) Roaster’s Guild and a licensed

Q Grader.

David De CandiaDirector of Tea, Buyer & Master Blender

David sources and develops our premium teas

and is one of the world’s leading tea experts.

He has been an enthusiastic advocate on the

benefits of tea — both in-house and to the

general public. He travels the world to find the

finest ingredients and is constantly researching

and testing new flavor possibilities. David is a

driving force in giving back to origin countries

with programs that benefit local farmers,

their families, and communities. David’s

passion for tea and his artistry in creating new

flavor combinations have been instrumental

in keeping The Coffee Bean & Tea Leaf® on the

cutting edge of beverage innovation.

| Left photo: Jesse Martinez-Beltran (left) & Jay Isais (right) coffee tasting as they do for every roast, of every day.

| Right photo: David De Candia smelling the sweet aroma of tea.

| Bottom right: David showcases the premium ingredients used in creating our unique tea blends.

| Right: Interior of store in Austin, Texas

| Left: Exterior of store in Austin, Texas

Company GrowthThe Coffee Bean & Tea Leaf® is one of the

world’s oldest and largest privately held coffee

retailers. In 20 countries, The Coffee Bean &

Tea Leaf® serves more than 100 million coffee

and tea beverages each year and over 20,000

Ice Blended® drinks a day. In addition, our coffee

line can be found in more than 500 grocery

stores throughout California and online

throughout the US.

Over the past five years, The Coffee Bean &

Tea Leaf® has added nearly 500 stores to its

global network – growing from 304 stores

to over 776 at the end of 2009. That’s a

new store opening every four days.

Key Statistics:

1000

900

800

700

600

500

400

300

200

100

0 2004 2005 2006 2007 2008 2009

776722

635

500

378

304

Store Growth

sto

res

US Company Stores 138 164 192 201 189 180

Asia Company Stores 79 77 78 87 89 91

Franchise Stores 87 137 230 347 444 505

Total Stores 304 378 500 635 722 776

• 39% Compounded Annual Growth Rate (cagr)

• Over 500 stores operated by 30+ franchisees.

• Serving 1,000,000 customers around the

world each week.

Our coffees and teas originate from some of the richestand most fertile growing regions throughout the world:

Teas

Darjeeling India assam India Cape south africa Thailand Taiwan China sri Lanka Japan Brazil Kenya

COffees Brazil Colombia Costa Rica ethiopia Guatemala Indonesia -

Java, sumatra, Bali Jamaica Kenya Mexico

Nicaragua Papua New Guinea Tanzania Uganda Usa (Kona)

Recent Limited editions Peru Nepal India ecuador (Galápagos)

Austin, USA

This information is not intended as an offer to sell, or the solicitation of an offer to buy, a “franchise” or “business opportunity”. It is for information purposes only. Currently, there are at least fifteen (15) states in the United States of America (the “USA”), at least three (3) Canadian provinces, and at least 13 other countries that regulate the offer and sale of franchises. In all states in the USA, federal law requires pre-sale disclosure of franchises. If you are a resident of one of these states, provinces or countries, or of any jurisdiction that hereafter regulates the offer and sale of franchises, are receiving this message in the USA or the other countries listed above, or intend to operate a franchise or business opportunity in the USA or these countries, we will not offer you a franchise or business opportunity unless and until we have complied with applicable pre-sale registration and/or disclosure requirements in the applicable jurisdiction.

No offer of a franchise by us to you will be binding on us, and no franchise will be granted by us to you, until both: (a) all conditions precedent to its offer and acceptance have been fully satisfied by you and us; and (b) we have delivered to you a fully executed area development agreement (“ADA”) signed by our President. Any action you take, or expenditures you make prior to your receipt of a fully executed ADA (and our notification to you that all conditions precedent to its execution have been met), are at your own risk.

United statesarizonaCaliforniaHawaiiMichigan NevadaTexas

Latin americaMexico

Middle eastBahrainegyptIsraelKuwaitOmanQatarsaudi arabiaUae

asia & australiaaustraliaBruneiChina IndiaIndonesia MalaysiaPhilippinessingaporesouth Koreasri Lanka Vietnam

Dubai, UAE

Ho Chih Minh City, Vietnam

Saket, India

sTORe LOCaTIONs

Direct Trade RelationshipsDirect trade means that we maintain a direct relationship with

the actual producer. By maintaining a simple, direct, and honest

relationship with each of our suppliers based on our guiding

principals, we can assure ourselves and our customers of a fair and

transparent supply chain. We’re part of the process from the seed

all the way to when you take a sip from our freshly brewed tea.

Our privately owned and operated facility is

located in Southern California. This state

of the art plant is where all our whole bean

coffees are tested and roasted fresh daily and

where all of our whole leaf teas and flavored

infusions blended and packaged.

The Total Package

farms and estates – We have personal

relationships with the families that own and

run the coffee farms and tea estates. As we

have become a part of their lives we have

gained access to parts of the land we may

otherwise not. Field 17 at the Bogawantalawa

Tea Estate in Sri Lanka is considered to

produce the finest tea in the world. The tea

from that field never goes to auction, but

through our relationship with the estate, is

sold directly to The Coffee Bean & Tea Leaf®.

Coffee nursery, Costa Rica

Bags of green coffee, RAD

Roasting coffee, RADCoffee farm, Costa Rica

| Bottom left photo: Paul Balzer, Vice President of Supply Chain, at the Bogawantalawa Tea Estate, Sri Lanka

THIRD PaRTy DIsTRIBUTORs

stores – Each new location becomes a part

of the community and a welcome oasis for our

customers. We’re passionate about our product

and proud of our company’s heritage.

From the sustainable farms where our products originate to our strong and healthy distribution and supply chains, we’re a complete business solution.

California

Seoul, Korea

Our 3rd party distributors are, equipped with

a 50,000-square-foot warehouse located in

Compton, California, where our finished

products are sent for distribution and

shipping. Daily shipments to our stores ensure

the freshest, most satisfying coffee and tea

products available anywhere. Our Customer

Service department, which takes care of all

orders for 20 countries, is also located here.

Austin, Texas

ORIGIN ROasTING & DIsTRIBUTION THe sTORes

Make our success yours.With 50 years of experience in the specialty coffee segment,

The Coffee Bean & Tea Leaf® has built a strong and complete

business infrastructure and offers comprehensive franchise

resources. We have worldwide distribution capabilities and

an integrated supply chain - owning the experience from

Farm to Customer. Exclusive and proprietary recipes for

beverages, pastries, and café meals are created by our internal

product development team who ensures each item is crafted

to our premium standards. Our real estate and development

team assists in store designs, specs and construction. The

support team includes dedicated franchise trainers and

ongoing franchise support. We believe in finding the right

partner and growing together. Our franchisees maintain the

integrity of The Coffee Bean & Tea Leaf® name and continue

to expand and strengthen the brand across the world.

Franchising InformationThe Coffee Bean & Tea Leaf® is a well known, highly

respected brand name. We’re located in many key markets

internationally and our business continues to experience

dramatic growth across the US and the world. We strive to

have stores everywhere our customers work, live and play.

With an ability to adapt to market-specific demands and

location-specific needs, we take into consideration the

environment, local community standards, cultural nuances,

customer habits and market demands. Each franchise store

is uniquely planned based on our brand standards and then

tailored to meet the individual requirements of every

new location.

The Special Distribution Store category

The Coffee Bean & Tea Leaf® is a leader in developing non-traditional franchised locations that

have won wide acceptance across the industry. We start by understanding the culture of the

specific location. We then embed a custom-configured The Coffee Bean & Tea Leaf® cafe within the

footprint of a larger institution, i.e., grocery stores, airports, hotels, hospitals, or universities.

Within the past year, our franchisees have opened nine new SDS locations, bringing the total

number of non-traditional locations throughout North America to 85. Recent openings include

several prominent film studios, the University of Southern California, numerous airport

locations and 50 cafes within Ralph’s Grocery Stores. This model allows our customers to

find their favorite beverage everywhere they go, while improving the customer experience and

increasing revenues for the institution.

| Left Photo: Singapore

| Right Top to Bottom: Korea, Indonesia, Univeristy of California, Riverside

| Top photo: California store

| Middle photo: Vietnam store

| Bottom photos: Mexico store

Charitable InitiativesThe Coffee Bean & Tea Leaf® works with a selected number of charities

through our Caring Cup initiatives, which benefit domestic and international organizations.

The Help Group – This organization serves children with autism, Asperger’s syndrome,

learning disabilities, ADD/ADHD, mental retardation and emotional challenges. At The Coffee

Bean & Tea Leaf® store locations, customers are invited to sign a holiday-themed card in exchange

for a $1 donation and then “deck the walls” of the stores. 100% of the proceeds from these

donations are given to The Help Group. The company also donated an additional $1 from

every purchase of its whole bean, 16 oz. Holiday Blend coffee and Winter Dream Tea® tin to

The Help Group.

support from Home – The Coffee Bean & Tea Leaf® stores in the U.S. recently participated

in a program developed to support military troops stationed overseas. Customers were invited

to purchase a special coffee blend and write personalized messages right on the package. With

the help of the organization Soldier’s Angels and Fisher House™, the campaign was hugely

successful– over 18,000 pounds of coffee were, purchased, and shipped to military personnel

overseas during this 3-month effort.

Local store Initiatives – Each store is provided a budget to give back to their local

communities. Whether it is donating product or a portion of the proceeds from sales on specific

items to charities, The Coffee Bean & Tea Leaf® strives to be a caring and compassionate

corporate citizen.

In addition, many employees are active in the communities they serve and are often the ones

who research and recommend the initiatives in which The Coffee Bean & Tea Leaf® participates.

Employees are also encouraged to get to know their customers and build relationships so that

they’re aware of the local community’s needs. The Coffee Bean & Tea Leaf® often receives letters of

appreciation from customers throughout the world detailing the positive impact these programs

have had-and continue to have.

Caring Cup OriginsAt The Coffee Bean & Tea Leaf®, quality product and quality of life go hand in hand. That’s why

we insist that origin farms practice environmentally safe cultivation and offer fair wages to their

workers, enabling them to provide for their family’s welfare. We also work closely with growers

in origin countries to develop programs that give back to the local communities, ensuring that

revenue from the sale of our products is more fairly and equitably distributed all along the supply

chain. Below you will find a selection of some of our most successful ongoing programs.

Kenya – Working with local authorities, The Coffee Bean & Tea Leaf®

recently finished construction of a nursery school in the Mukengeria

district of Kenya, where some of our most popular black teas are

cultivated. This school, is certain to offer new hope to local families,

while reinforcing our company’s core values.

Colombia – In collaboration with Empresas de Nariño, a local

coffee grower, The Coffee Bean & Tea Leaf® donates a portion of the

proceeds from every one-pound bag of its Colombian coffee to build

and improve schools in the Nariño region of Colombia.

sri Lanka – In 2003, The Coffee Bean & Tea Leaf® funded the

construction of the Bogawantalawa tea estate community center, where

the company buys its Ceylon teas. Additionally a portion of the sales

of our Ceylon teas benefits the Aid Lanka Kids Foundation, which

provides care and education to orphans at the Jeevanie School for Girls.

ethiopia – Through sales of Ethiopian coffee, The Coffee Bean & Tea

Leaf® donates to the Kidane Mhret Students’ Self-Help Association,

which provides library services, tutoring, school supplies and

educational facilities to local children.

India – Warm meals are often a rarity in the developing world where

many of our products are grown and cultivated. The Coffee Bean & Tea

Leaf® recently presented 150 petroleum stoves to be installed in the homes of tea pluckers working

on the Shree Dwarika tea estate in Darjeeling, India.

Papua New Guinea – A donation of funds above the premiums paid for our green coffee was

made to build a new school on the world famous Sigri Estate in Papua New Guinea.

| Kio, a tea estate worker from Mukengeria, Kenya

| Nariño, Colombia: Multi-purpose room is built for the children of local coffee families with the help of the Caring Cup program.

The Executive TeamSunny Sassoon Executive Chairman of the Management Board

Mel EliasPresident and CEO

Terry Mansky Chief Administrative Officer, Senior Vice President and General Counsel

Bob Kaufman Vice President of Business Development

Paul Balzer Vice President of Supply Chain

Coralie Calvet Lewis Vice President of Finance

Mark Lindstrom Vice President of Operations

Tom Clemente Vice President of Sales

Simply the Best!

The Coffee Bean & Tea Leaf® 1945 S. La Cienega Blvd., Los Angeles, CA 90034coffeebean.com/franchise Phone: 1-800-TEA-LEAF (1-800-832-5323) Email: franchise@coffeebean.com©2010 International Coffee & Tea, LLC. The Coffee Bean & Tea Leaf® name and logo are registered trademarks of International Coffee & Tea, LLC.

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