Tully's Coffee and International Paper Introduce Fully Renewable and Compostable Paper Cup

Seattle, Wash. - September 19, 2007 - Tully's Coffee Corporation (Tully's), a fully handcrafted coffee roaster, today became the first major coffee retailer to adopt a fully renewable and compostable paper cup for its hot beverages.  Tully's has simultaneously established an in-store collection program to divert the used cups and other compostable food waste from local landfills to organic composting facilities.  These materials will eventually be composted and "recycled" to enrich soil rather than lost to the landfill.

Tully's program features the innovative ecotainer™ hot cup from International Paper.  Unlike conventional paper cups that are lined with a petrochemical plastic to prevent leaking, the ecotainer™ hot cup is lined with a bio-plastic made from a renewable resource - corn.  This coating material requires less energy to manufacture and is greenhouse gas neutral.  In addition, the cup is the only commercially available 100 percent compostable hot cup certified by the Biodegradable Products Institute (BPI).

"Our ecotainer™ hot cup is designed to maximize use of renewable materials, to reduce energy and greenhouse gas emissions required to make the product, and to offer an alternative to land-filling packaging waste," said Austin Lance, vice president and general manager of International Paper's Foodservice Business.  "Tully's is among the leaders in achieving the full environmental benefit this product was designed to deliver."

To further the effectiveness of this initiative, Tully's has also partnered with local compost and recycling organizations to establish the first waste management program of its kind.  It is estimated that as a result, more than 70 percent of food and packaging waste from Tully's retail stores will now be diverted from local landfills.  Cedar Grove Organics will collect and compost Washington Tully's new green cup at local facilities in Everett and Maple Valley.

"Cedar Grove supports Tully's switch to compostable cups, and is pleased to partner with Tully's to pioneer their widespread inclusion in commercial composting programs," said Christina Graham, district manager for Cedar Grove Organics.

"With American consumers using more than 16 billion paper hot cups every year, leaders in the Specialty Coffee retail industry need to take action," said Rob Martin, vice president of Merchandising and Production for Tully's Coffee.  "Tully's customers expect that we are going to deliver a great coffee experience every time - and that we are going to do it in a way that is consistent with our core values."

For More Information Contact:

Tully's: Rob Martin  (206) 226-5285

International Paper: Amy Sawyer (901) 419-4312