Green Mountain Coffee Roasters (GMCR)

Subsequent Event

Business Outlook and Other Forward-Looking Information

Subsequent Event

As previously announced on October 23, 2008, the Company’s Keurig subsidiary entered into a Settlement and License Agreement to settle its patent litigation with Kraft Foods Inc., Kraft Foods Global, Inc., and Tassimo Corporation (collectively “Kraft”). Pursuant to the terms of the Settlement and License Agreement, Kraft paid to Keurig, after the fourth quarter ended, a lump sum of $17,000,000 and Keurig granted to Kraft and its affiliates a limited, non-exclusive, perpetual, worldwide, fully paid up license of Keurig’s United States Patents Numbered 6,607,762 (the “762 Patent”) and 7,377,162 (the “162 Patent”), and United States and foreign counterpart patents connected to the 762 Patent or 162 Patent, for use in connection with the manufacture, distribution and sale of beverage brewing machines and certain beverage filter cartridges. This settlement will be recorded in the Company’s first quarter of fiscal 2009 as a non-recurring item in operating income of $17 million and will be taxed at the annual effective tax rate. Upon receipt of this lump sum payment at the end of October, the Company used the majority of these funds to pay down debt outstanding under its existing credit facility.

Business Outlook and Other Forward-Looking Information