PEET Peets Coffee & Tea, Inc. (MM)

Overall SEM Costs Down 38% for Specialty Coffee Retailer Since Switch From Previous SEM Vendor SAN MATEO, Calif., June 20 /PRNewswire/ -- Coremetrics, the leading provider of hosted web analytics and precision marketing solutions, today announced that Peet's Coffee & Tea, Inc. (NASDAQ:PEET), a specialty coffee roaster and marketer, has engaged Coremetrics Search Services as part of an initiative to improve the performance of its search engine marketing (SEM) efforts. Major goals in partnering include increasing revenue, acquiring new customers, and managing profitability. "We had very limited resources for SEM and needed to optimize spending," said Brian Platter, general manager of home delivery, Peet's Coffee & Tea, Inc. "Coremetrics Search Services provides the tools and expertise we need to obtain maximum value for every dollar we spend on Search. The results speak for themselves. After a two-month optimization period with Coremetrics, we saw a 310 percent increase in revenue and 665 percent ROI for SEM campaigns, compared with the performance of our previous SEM vendor. Our overall SEM costs are down 38 percent and we've reduced cost per click to about a third of previous levels." Coremetrics Search Marketing Services provides clients with fully outsourced management of pay per click search marketing campaigns leveraging proven best practices and deep expertise in behavioral analysis. Coremetrics analysts worked closely with Peet's to identify keywords that would resonate with potential customers based on site behavior patterns. The team also used Search to target customers for the company's Peetniks loyalty program, having certain terms trigger sponsored links with copy to encourage existing and new customers to sign up for recurring deliveries. The strong partnership that developed between the two companies during the optimization period enabled timely response to an opportunity for the Peet's to be featured on a highly popular, national talk show. In less than a week the team developed and launched a coordinated search campaign for this opportunity, resulting in impressive new customer acquisition. "Search marketing continues to be an important tool for generating traffic to an ecommerce site," said Joe Davis, president and CEO of Coremetrics. "The purpose of Coremetrics Search Marketing Services is to help companies like Peet's optimize search engine marketing to attract highly qualified traffic while reducing costs per click through improved targeting. As we've worked through the optimization process, the relationship between the two companies has matured, deepening our insight into what keywords and campaigns work best for attracting visitors to the site and converting them to loyal customers." About Coremetrics Coremetrics is the leading provider of on-demand web analytics and precision marketing solutions, offering the industry's only web analytics platform that captures and stores all customer and visitor clickstream activity to build LIVE (Lifetime Individual Visitor Experience) Profiles. Representing the single most accurate and comprehensive source of online customer data, LIVE Profiles serve as the foundation for all successful eBusiness initiatives. Leading online brands rely on Coremetrics LIVE Profiles to monitor and optimize the performance of multiple marketing campaigns, improve cross sell and multichannel initiatives, and precisely target customers through intelligent marketing campaigns. Coremetrics services more than 600 brands and has delivered over $300 million in documented ROI in the past two years. The company is privately held with funding from Accel Partners, FTVentures, and Highland Capital Partners and is headquartered in San Mateo, California with offices in Austin, Texas, Dallas, Texas and London, England. To learn more about Coremetrics, visit http://www.coremetrics.com/ or call 877-721-CORE. Coremetrics has strongly supported online privacy since its inception. To learn more, visit http://www.coremetrics.com/privacy. About Peet's Coffee & Tea Founded in Berkeley, Calif. in 1966, Peet's Coffee & Tea, Inc. is a specialty coffee roaster and marketer of fresh, deep-roasted whole bean coffee for home and office enjoyment. Peet's fresh-roasted coffee, hand-selected tea and related items are sold in several distribution channels including specialty grocery and gourmet food stores, online and mail order, office and restaurant accounts and company-owned stores throughout the United States. Peet's is committed to strategically growing its business and to maintaining a unique culture and focus on customer satisfaction. For information about Peet's Coffee & Tea, Inc., visit http://www.peets.com/ or call 1-800-999-2132. Peet's Coffee & Tea, Inc. shares are traded under the symbol PEET. This press release contains statements that are not based on historical fact and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management's beliefs as well as assumptions made by and information currently available to management, including financial and operational information and current competitive conditions. As a result, these statements are subject to various risks and uncertainties. The Company's actual results could differ materially from those set forth in forward-looking statements depending on a variety of factors including, but not limited to, risks arising from accounting adjustments; the Company's ability to implement its business strategy, attract and retain customers, and obtain and expand its market presence in new geographic regions; the availability and cost of high quality Arabica coffee beans; consumers' tastes and preferences; and competition in its market as well as other risk factors as described more fully in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended January 1, 2006. These factors may not be exhaustive. The Company operates in a continually changing business environment, and new risks emerge from time to time. Any forward- looking statements speak only as of the date of this press release. DATASOURCE: Coremetrics CONTACT: Jennifer Strasburg, +1-415-248-3436, or , for Peet's Coffee & Tea; or media/analysts, Adriana Gascoigne of LEWIS PR, +1-415-992-4424, or , for Coremetrics Web site: http://www.peets.com/ Web site: http://www.coremetrics.com/

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