CBOU Caribou Coffee Company, Inc. (MM)

Caribou Coffee Company, Inc. (Nasdaq:CBOU), which is the second largest company-owned gourmet coffeehouse operator in terms of coffeehouses, today announced that its initial public offering of 5,358,000 shares of Common Stock was priced at $14.00 per share. Caribou Coffee has granted to the underwriters a 30-day option to purchase up to an additional 803,700 shares of common stock to cover over-allotments, if any. Merrill Lynch & Co. and Thomas Weisel Partners LLC served as joint book-running managers of the offering. SG Cowen & Co. and SunTrust Robinson Humphrey served as co-managers. The shares will be traded on the Nasdaq National Market under the symbol "CBOU." Proceeds from the offering are expected to be approximately $67.9 million or $78.4 million if the underwriters exercise their over-allotment option in full, after deducting the underwriting discounts and commissions and the estimated offering expenses. The proceeds from the offering will be used to repay all amounts outstanding under Caribou Coffee's revolving credit facility, for expansion and development (primarily to open new coffeehouses) and for general corporate purposes. The common stock offering may be made only by means of a prospectus, copies of which may be obtained by contacting Merrill Lynch & Co. at Four World Financial Center, 250 Vesey Street, 5th Floor, New York, NY 10080 or Thomas Weisel Partners LLC at One Montgomery Street, Suite 3700, San Francisco, CA 94104. A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on September 28, 2005. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About the Company Caribou Coffee, founded in 1992 and headquartered in Minneapolis, Minnesota, is the second largest company-owned gourmet coffeehouse operator in the United States based on the number of coffeehouses. As of July 31, 2005, Caribou Coffee had 337 coffeehouses, including three licensed locations and four joint venture locations. Caribou Coffee's coffeehouses are located in 14 states and the District of Columbia, including 154 coffeehouses in Minnesota and 56 coffeehouses in Illinois. Caribou Coffee offers its customers high-quality gourmet coffee and espresso-based beverages, as well as specialty teas, baked goods, whole bean coffee, branded merchandise and related products. In addition, Caribou Coffee sells products to grocery stores and mass merchandisers, office coffee providers, airlines, hotels, sports and entertainment venues, college campuses and other commercial customers. Caribou Coffee focuses on creating a unique experience for customers through a combination of high-quality products, a comfortable and welcoming coffeehouse environment and customer service. Forward Looking Statements Statements in this press release, other than historical information, may be "forward-looking" in nature within the meaning of Section 21E the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and assumptions. These statements are based on management's current expectations, estimates and projections about Caribou Coffee and its industry and include, but are not limited to, its ability to successfully defend ongoing current or future lawsuits, to manage overall customer satisfaction, to maintain its overall business and market penetration, to leverage its business model and to effectively balance Company growth and profitability. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. The risks, uncertainties and assumptions that may affect Caribou Coffee, its operating results and your investments, include, but are not limited to, receipt of additional lawsuits brought against the Company by competitors, regulatory authorities or other third parties; unfavorable outcomes delivered in any Company lawsuits; fluctuation in quarterly and annual results; Caribou Coffee's ability to attain and maintain long-term customer satisfaction; its ability to meet projected financial results, open new coffeehouses as well as the factors disclosed in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.