MobileStar to Provide High-Speed Wireless Internet Access and Infrastructure

SEATTLE and REDMOND, Wash., Jan. 3, 2001 — Starbucks Coffee Co. (Nasdaq
) and Microsoft Corp. (Nasdaq
) today announced a strategic relationship to create a high-speed, connected environment in Starbucks locations across North America using MobileStar Network Corp.’s wireless broadband network. Customers will be able to access broadband content and services using their own wirelessly enabled laptops, smart phones, Pocket PCs and other handheld devices – all while enjoying a cup of Starbucks coffee.

The relationship combines Starbucks expertise in creating an inviting and relaxing coffeehouse experience with Microsoft’s state-of-the-art technologies and MSN® content and services. MobileStar, a leading wireless broadband Internet service provider, will deploy the network infrastructure beginning in late spring, delivering an enhanced consumer experience for Starbucks customers. The planned technologies represent an early step in Microsoft’s delivery on the .NET vision of software that empowers users any time, any place and on any device and Starbucks’ desire to address the changing lifestyles of its customers.

“Starbucks’ customers will enjoy an even better in-store experience, thanks to our combining Microsoft software and technology with Starbucks’ focus on serving its customers’ needs,”
said Steve Ballmer, president and CEO of Microsoft.
“We’re really pleased to be working with Starbucks on this project. Starbucks is not only a great Seattle neighbor, but one of the world’s leading retailers and among the best-known and best-respected brands on the globe.”

During the coming year, the companies will work together to develop services that leverage the power of the wireless broadband network. For example, customers will be able to download the latest information on local arts and entertainment and shop online while enjoying their beverage. In addition, customers using the MobileStar wireless broadband service will be able to check their e-mail and even access corporate intranets to stay connected to the office.

“This ‘one of a kind’ national wireless broadband network gives Starbucks a unique position in the landscape of retailers,”
said Howard Schultz, chairman and chief global strategist at Starbucks.
“These new relationships will provide us a great opportunity to enhance our existing customers’ in-store experience as well as attract new customers to our retail locations.”

The in-store network complements a broader Starbucks effort to update store technology to streamline operations and communications. Ongoing infrastructure enhancements will support improved labor scheduling, planning and training as well as provide a platform for initiatives such as the launch of a Starbucks customer card that will speed up in-store ordering and payment and the capability for customers to preorder drinks over their cellular phones.

“A focus on continually improving store operations and enhancing our customers’ experience underlies our success as a retailer,”
said Darren Huston, senior vice president of New Ventures at Starbucks.
“These agreements enable us to take a big step toward both goals at the same time. Working with focused, strategic companies like Microsoft and MobileStar will ensure that we fully capture this opportunity to improve our core business more quickly.”

Mark Goode, CEO of MobileStar, said,
“Our company is intensely focused on meeting the needs of our customers by providing them with personalized and distinctive experiences. The agreement with Starbucks solidifies our strategic initiatives and supports the growth of our network as we continue to provide high-speed wireless broadband Internet access and value-added applications to our customers where and when they need them.”

Terms of the arrangements were not released.

About Starbucks

Starbucks Coffee Co. is the leading retailer, roaster and brand of specialty coffee in the world. In addition to its retail locations in North America, the United Kingdom, the Pacific Rim and the Middle East, Starbucks sells coffee and tea products through its specialty operations, including its online store at In addition, Starbucks produces and sells bottled Frappuccino® coffee drink and a line of superpremium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Co.

About MobileStar

MobileStar Network Corp., located in Richardson, Texas, is the leading provider of high-speed, wireless Internet access for business travelers in hot spots such as airports, hotels, convention centers, restaurants and other public places in the United States. Founded in 1996, MobileStar currently has the largest and most mature subscriber base and also manages the largest number of fully functional points of access. Specifically designed for wireless Internet access, MobileStar’s subscription service includes true authorization and authentication functionality. Through roaming agreements, MobileStar offers its broadband wireless Internet service globally.

About Microsoft

Founded in 1975, Microsoft is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device.


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