Howard Schultz Annual Quotations

Management's proposal to declassify the Board demonstrates Starbucks Board of Directors commitment to good corporate governance practices. The Board believes that the annual election of directors is a primary means for shareholders to influence corporate governance policies and hold management accountable for implementing those policies.

The current high level of revenue performance is not sustainable. February 2004 benefited from strong post-holiday Starbucks card redemptions and an early start to our annual brewing event,