Cuppy’s Coffee Brews Up Record Growth in 2007

Specialty Coffee Franchise Pours Itself into Franchising,

Grinds out New Deals, International Expansion

FORT WALTON BEACH, Florida – December 18, 2007 – Cuppy’s Coffee, Smoothies & More, Inc., a rapidly growing specialty coffee and smoothie franchise business, today announced a record year of growth in 2007 marked by the opening of 33 stores and signed franchise agreements for over 200 locations to be opened in 2008. This year’s expansion positions Cuppy’s Coffee to meet its goal of opening 1,500 stores across the U.S. within the next five years as the year-old company strives to aggressively expand its footprint in the specialty coffee and smoothie industries.

In 2007 alone, Cuppy’s Coffee opened 17 cafes, 24 dual drive-thru units, four kiosks and 13 mobile units, giving the franchise a total of over 60 stores nationwide and a presence within 24 states. The company announced today that it is pursuing growth opportunities in the following areas: Atlanta, South and Central Florida, California, Texas, Pittsburgh, Chicago and the Midwest, respectively. “Our goal is to be a household name in each of these development areas,” said Amy Hiller, VP of Operations for Cuppy’s Coffee.

Franchisees find a support structure that is unparalleled in the specialty coffee industry, with more than 100 members working to support them in business operations, financing, real estate, staffing, construction and accounting. “This past year has been a banner year for Cuppy’s Coffee in terms of franchise growth and the progression of our concept,” said Doug Hibbing, president of Cuppy’s Coffee. “Not only have we stayed true to our goals, but we’ve surpassed them while continuing to provide our franchisees with the attention and support they’ve come to expect. We look forward to another record year in 2008 as we continue our expansion in the U.S. and overseas.”

Building upon growth momentum in the U.S., Cuppy’s Coffee has begun international expansion in Canada. Additionally, Cuppy’s Coffee has a master franchisee in South Africa which launched the franchise in early October and plans to have at least 50 stores in the region by quarter four of 2008. With a franchise in Puerto Rico as well, the company is positioning itself as a force to be reckoned with on a global scale.

Cuppy’s Coffee’s menu will also undergo its own expansion in the coming months. In addition to its barista-made mochas, lattes and cappuccinos, 100-percent crushed fruit smoothies, Chai tea, Italian sodas, muffins, pastries, sandwiches, soups and salads, Cuppy’s Coffee is planning to add a line of Italian ice to its extensive offerings, introducing the coffee and smoothie franchise to a new segment of the quick-service restaurant industry.

As dairy prices continue to rise heading into 2008, forcing coffee chains like Starbucks to raise their prices for a cup of joe, Cuppy’s Coffee has found a way to outdo the competition. Cuppy’s Coffee is happy to accommodate those looking for top quality coffee drinks at a lower price with the 12oz. cup selling for an average of $2.60. With 51% of the U.S. population drinking coffee on a daily basis, according to the National Coffee Association, Cuppy’s Coffee continues to take growing share of this market.

About Cuppy’s Coffee, Smoothies & More

Cuppy’s Coffee, Smoothies & More is a specialty coffee and smoothie franchise based in Fort Walton Beach, Florida. Cuppy’s Coffee has welcomed more than 225 franchisees to the family since June 2006 and is currently opening an average of seven to 10 stores each month all across the United States. The franchise has nearly 70 locations in the U.S. and Canada, with more than 80 signed leases and over 50 projects currently under construction.