Green Mountain Coffee Roasters (GMCR)

Outlook

For fiscal 2005 ending September 24, 2005, the Company anticipates net sales growth in the range of 16% to 21% and coffee pounds growth in the range of 12% to 16% . Gross margin is expected to be in the range of 35.0% to 36.0% and operating margin in the range of 9.7% to 10.3%. Interest expense is expected to the approximately $700,000 to $800,000 compared to $282,000 in fiscal 2004, with the increase due to the recent completion of the new distribution center and the cessation of capitalization of the related interest expenses. The tax rate for fiscal 2005 is expected to be approximately 40.0% compared to 39.2% in fiscal 2004, with the change due to lower capital expenditures in fiscal 2005 and the associated decrease of the favorable impact of the awarded state tax incentives under the Vermont Economic Advancement Tax Incentive Program. Recognition of the Company's share of Keurig's loss for fiscal year 2005 is anticipated to reduce diluted earnings per share by $0.08 to $0.13 including approximately $0.06 per share related to the accretion adjustment for the estimated redemption value of the preferred stock of Keurig, Inc. Based on all of these factors, the Company reaffirms that it anticipates its fully diluted earnings per share for fiscal year 2005 will be in the range of $1.12 to $1.19 per share.