Diedrich Coffee Inc (947661) SEC Filing 10-K Annual report for the fiscal year ending Wednesday, June 24, 2009

Exhibit 99.1

Diedrich Coffee Reports Third Quarter Earnings

Irvine, California, April 20, 2009

Year-to-date, the Company reported a net loss of $1,420,000, or $0.26 loss per share, compared to a net loss of $3,582,000, or $0.66 loss per share, for the comparable period in the prior fiscal year. The year-to-date results of the prior fiscal year included an after-tax gain of $767,000, or $0.14 per share, from escrow proceeds received in the first quarter of fiscal year 2008 from the sale of the majority of the Company’s Diedrich Coffee and Coffee People company-operated locations, which was completed in the 2007 fiscal year.

Revenue

Total revenue increased by $8,187,000, or 72.3%, to $19,509,000 for the third quarter of fiscal year 2009 as compared with total revenue of $11,322,000 in the same period of the prior year. With respect to the components of total revenue, wholesale revenue increased $7,721,000, up 79.9% from the prior year period, franchise revenue decreased $78,000, down 11.9% from the prior year period, and retail sales increased $544,000, up 54.3% from the prior year period. Year-to-date, total revenue increased by $14,913,000, or 46.7%, to $46,843,000 as compared with $31,930,000 in the same period of the prior year. With respect to the components of total revenue, wholesale revenue increased $14,864,000, up 56.1% from the prior year period, franchise revenue declined $441,000, down 21.1% from the prior year period, and retail sales increased $490,000, up 14.7% from the prior year period, as compared to the same period of the prior year.