Please replace the release with the following corrected version due to revised second graph.

The corrected release reads:

LAW OFFICES OF HOWARD G. SMITH ANNOUNCES INVESTIGATION ON BEHALF OF SHAREHOLDERS OF DIEDRICH COFFEE, INC.

Law Offices of Howard G. Smith announces that it is investigating potential claims against the board of directors of Diedrich Coffee, Inc. (“Diedrich Coffee” or the “Company”) (Nasdaq:DDRX) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Peet’s Coffee & Tea, Inc. (“Peet’s”)

The investigation concerns the price to be paid by Peet’s to Diedrich Coffee shareholders and the process by which Diedrich Coffee’s Board of Directors is addressing the transaction. Under the terms of the proposed transaction, Diedrich Coffee shareholders will receive $17.33 in cash and a fraction of a Peet’s share valued at about $8.67 for every share of Diedrich Coffee common stock they own. The transaction appears to be unfair given that Diedrich Coffee stock was trading at $29.88 a share as recently as October 22, 2009 and was trading at $25.39 a share on August 4, 2009.

If you own shares of Diedrich, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or visit www.howardsmithlaw.com. You may also email my firm at howardsmith@howardsmithlaw.com.