Micro-Roasted Gourmet Coffee Available In 300 BI-LO Supermarkets

Los Angeles, March 27, 2002-Newhall Coffee Roasting Company, the California-based, six-year-old, premier micro-roaster of gourmet coffee, is expanding its retail presence nationally, for the first time, via an agreement with national supermarket chain, BI-LO. In addition to existing retail distribution with Ralphs and Pavilions supermarkets and Costco Wholesale stores, the 300 BI-LO stores located in North and South Carolina, Tennessee, Georgia and Florida will be stocking their shelves with what was once the Newhall area's best kept secret beginning the third week in April.

Also expanding nationally is the company's commitment to fundraising. The founders, brothers Mitch and Kyle McMullen, eventually hope to raise $1 million for the Corey McMullen Leukemia Fund. In memory of their older brother Corey who died several years ago from Leukemia, a percentage of per bag sales of the Newhall Coffee Roasting Company sold through the BI-LO retail outlets will be donated to The Leukemia and Lymphoma Society of America.

"We're honored that BI-LO Supermarkets have chosen Newhall Coffee as a brand to offer their customers," said Mitch McMullen, co-founder and CEO, Newhall Coffee Roasting Company. "The company is known for their commitment to quality and customer service and the fact that they've recognized the Newhall Coffee brand is very significant to us," finished McMullen.

The Newhall Coffee Roasting Company is achieving success in what has previously been perceived as a flat consumer product category-coffee-by focusing on the quality of the beans it selects for its premium brews and its unique micro-roasting process. The result is an unmistakable difference in flavor and taste. Some retailers currently offering the popular Newhall Blends are selling over 400 units per week and some stores have seen a 20 percent overall category increase, reporting that Newhall Coffee is the leading seller against huge national brands such as Starbucks, Seattle's Best, and Nescafe coffees.

The company has also experienced a 25 percent increase in year-to-date sales for 2002 and has recently added Ralphs, Pavilions supermarkets and Costco Wholesalers, in addition to corporate clients such as DreamWorks and Warner Brothers, as customers.

"We've had a great response to our micro-roasted coffees as well as our desire to raise money on behalf of The Leukemia and Lymphoma Society of America. We're pleased to be able to expand fundraising efforts beyond Southern California," stated Kyle McMullen, co-founder and president, Newhall Coffee Roasting Company.

Micro-roasting is a process that involves utilizing a small, micro-roaster instead of the large industrial roasters favored by most premium coffee companies. According to the McMullens, micro- or small-batch roasting of no more than 50 pounds at a time gives the coffee a richer, fuller bodied flavor. The company uses only Grade 1 beans, which represent less than two percent of the world's entire coffee supply. All beans are consistent in size, shape and color.

"Great care in our micro-roasting process ensures that every bean meets our high standards before it leaves our premises - you can taste the difference. We are committed to getting our product on to store shelves quickly, which means our customers enjoy our blends while they are still fresh," stated Kyle McMullen.

According to the McMullens, most gourmet coffee retailers usually deliver within 10 to 20 weeks of the roast, claiming that the packaging process keeps the coffee fresh. By contrast, Newhall Coffee Roasting Company delivers its blends within one to two days after they are micro-roasted. Mitch McMullen insists their coffee tastes better because it is fresh, and boasts, "It has never lost a taste test yet!"

"Coffee roasting is an art," said McMullen. "Like any gourmet endeavor, you can't simply set a timer and walk away. To achieve great tasting coffee you need to start with high quality, consistent beans; handcraft them in very small batches, and deliver them to the customer within 24 hours of the roast."

About BI-LO
BI-LO LLC is a progressive, rapidly growing supermarket chain operating over 300 full service grocery stores in the southeastern United States. Built on a commitment to low prices, high quality and excellent service, BI-LO is a leader in its marketing areas. Dedicated, talented associates provide the key ingredient that puts BI-LO above the rest. It is the associates in our stores who create the atmosphere that turns our shoppers into customers for life. And in return, we, as a company, strive to maintain an environment that offers our associates challenging, enjoyable opportunities for growth. BI-LO looks to an exciting future with dynamic marketing strategy and the best people in the business.

About Newhall Coffee Company
Brothers Kyle and Mitch McMullen launched Newhall Coffee in 1995 as a means of supplying high quality coffee beans for their Java 'n Jazz coffeehouses in Valencia, California. Very quickly, regional demand for their fresh, micro-roasted coffee propelled the company's dramatic growth. Following its launch, Newhall Coffee was brewing about 1,000 pounds of coffee per month. Today that figure exceeds 100,000 pounds of coffee-enough to brew four million cups per month, with demand expanding daily. The popularity of the over 100 Newhall Coffee blends and flavored coffees is evident in Newhall's corporate client list, which includes some of the biggest names in entertainment, such as DreamWorks SKG Studios, Warner Bros., and Princess Cruises. Newhall Coffee Roasting Company coffee can be ordered online at www.newhallcoffee.com or through the Costco web site at www.costco.com. Newhall Coffee Roasting Company is headquartered in Valencia, California. For more information, visit www.newhallcoffee.com.