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Starbucks Foundation Awards US$2 Million from the Ethos Water Fund to Help Improve the Lives of People in Water-Stressed African Communities

Published 03-13-08

Submitted by Starbucks Corporation

SEATTLE "“ March 13, 2008 "“ Starbucks Coffee Company (NASDAQ: SBUX) today announced the Starbucks Foundation is making two new grant commitments to help support water, sanitation and hygiene education programs in water-stressed African communities. Over a three-year period, CARE and Project Concern International will each receive US$1 million from the foundation’s Ethos Water Fund. Collectively, the organizations' efforts are expected to benefit an estimated 54,000 people who currently lack access to clean water and sanitation services.

CARE and Project Concern International were selected to receive the grants due to their emphasis on sustainability. In addition to providing access to clean water, both organizations will help empower local residents to become part of the long-term solution. CARE will introduce transformative sanitation and hygiene practices in Rwanda's Musanze District while Project Concern International will work to implement participatory methods and low-cost, easy-to-maintain technologies in Tanzania's Babati District.

Grants from the Ethos Water Fund are made possible through Ethos(TM) water purchases. "When our customers choose to buy Ethos water, they're improving the lives of people who lack vital resources," said Howard Schultz, Starbucks chairman, president and CEO. "This is an important mission, and it's one that any individual can help drive forward through a simple, everyday action."

For each bottle of Ethos(TM) water sold, US$0.05 (and C$0.10 at Starbucks company-operated stores in Canada) is directed to the Ethos Water Fund. To date, the fund has generated a total of more than US$6.2 million in grant commitments to help support water, sanitation and hygiene education programs benefiting over 420,000 people in Africa and Asia. Ethos Water aims to contribute US$10 million by 2010 to non-governmental organizations aligned with its mission.

Ethos Water has been actively involved in World Water Day since 2005. On March 22, Ethos Water will join forces with CARE, Project Concern International and other non-governmental organizations to host Walks for Water, which are inspired by the journey women and children in water-stressed countries make each day to obtain clean water for their families.

"Over the past several years, World Water Day has gained significant momentum," said Peter Thum, founder of Ethos Water and vice president at Starbucks. "It's truly inspiring to see NGOs, local community organizations and individuals join together in support of the cause. This day is an opportunity to bring attention to the world water crisis, and to connect with people who believe in driving change through action."

Walk for Water events will take place in Los Angeles, New York City, Seattle and other communities across the U.S. The public can register for local events, join the Virtual Walk for Water or make a donation to participating non-governmental organizations at www.worldwaterday.net.

Ethos Water recently launched a national print advertising campaign in collaboration with H20 Africa, a foundation focused on clean water initiatives. H20 Africa's co-founder, Matt Damon, appears in an ad encouraging consumers to get involved in raising awareness and funding for the world water crisis. The campaign coincides with the expanded distribution of Ethos(TM) water into more than 40,000 convenience, grocery, mass and drug stores across the U.S. through the Pepsi-Cola bottling system. Since Starbucks acquired Ethos Water in 2005, the product has become available in more than 7,000 company-operated stores in the U.S. and Canada.

For more information about this year's Ethos Water Fund grant recipients, visit www.care.org and www.projectconcern.org.

World Water Day

In 1992, the United Nations General Assembly designated March 22 as "World Water Day" to draw international attention to the world water crisis, one of the largest public health issues of our time. Despite the apparent abundance of clean water in the U.S. and other developed countries, an estimated 1.1 billion people around the world lack access to clean, safe drinking water, and more than twice that number lack adequate sanitation services. For information on how you can help alleviate the world water crisis, visit www.worldwaterday.net.

Ethos Water

Ethos Water's mission is to help children around the world get clean water and to raise awareness of the world water crisis. The company was started in March 2002 and acquired by Starbucks in April 2005. For each bottle of Ethos(TM) water sold, US$0.05 (and C$0.10 at Starbucks company-operated stores in Canada) is directed to the Ethos Water Fund, which is part of the Starbucks Foundation. Ethos Water aims to contribute US$10 million by 2010 to non-governmental organizations aligned with its mission. Further details are available at www.ethoswater.com.

Starbucks Foundation

In 1997, Starbucks Coffee Company established the Starbucks Foundation to create hope, discovery and opportunity in the communities where we do business. The foundation's initial focus was on funding literacy programs in the U.S. and Canada. Since then, it has expanded to include education and youth leadership in our store communities, as well as social investments in the countries where we purchase coffee, tea and cocoa. To date, the foundation has provided more than US$22 million in grants. For more information, visit www.starbucks.com/foundation.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest quality arabica coffee in the world. Today, with nearly 16,000 stores and more than 170,000 partners (employees) in 44 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.

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It's the way we do business Contributing positively to our communities and environment is so important to Starbucks that it's a guiding principle of our mission statement. We jointly fulfill this commitment with partners (employees), at all levels of the company, by getting involved together to help build stronger communities and conserve natural resources.

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