--  Reports net sales of $18,169,441 for the quarter and $33,131,982 for    the six months ended April 30, 2008;
--  Reports sales growth of 28.0% for the quarter and 23.5% for the six    months ended April 30, 2008 compared to the three and six month periods    ended April 30, 2007; and
--  Reports net losses of $2,044,178 for the quarter and $1,861,913 for    the six months ended April 30, 2008.    

Net sales totaled $18,169,441 for the three months ended April 30, 2008, anincrease of $3,975,068, or 28.0%, from $14,194,373 for the three monthsended April 30, 2007. Net sales totaled $33,131,982 for the six monthsended April 30, 2008, an increase of $6,302,497, or 23.5%, from $26,829,485for the six months ended April 30, 2007. The increase in net sales foreach period reflects increased amounts of green coffee, branded coffee andprivate label coffee sold as well as increased sales prices compared to thethree and six month periods of 2007.

The Company had a net loss of $2,044,178, or $0.37 per share (basic anddiluted), for the three months ended April 30, 2008 compared to net incomeof $338,888, or $0.06 per share (basic and diluted), for the three monthsended April 30, 2007. For the six months ended April 30, 2008, the Companyhad a net loss of $1,861,913, or $0.34 per share (basic and diluted),compared to net income of $648,592, or $0.12 per share (basic and diluted),for the 2007 period. The losses for the three and six month periods endedApril 30, 2008 were due to sharp increases in cost of sales that resultedfrom higher coffee prices and losses on options and futures contracts. Asa result, cost of sales exceeded net sales for the quarter ended April 30,2008 and were 99.4% of net sales for the six months ended April 30, 2008.Net losses on options and futures contracts equaled $2,082,679 for thesecond quarter of fiscal 2008 and $1,489,236 for the six months ended April30, 2008.

Commenting on the Company's losses on options and futures contracts,President and Chief Executive Officer Andrew Gordon said, "The increasedinvestment by index funds in crop futures during the first few months of2008 placed a major financial strain on commercial participants in manymarkets, including coffee. The price spike and subsequent market crash sawcoffee prices surge over $0.35 (26%) and then collapse within a five weekperiod. This spike prevented many companies, including ourselves, fromadequately managing risk during this time. We were unable to defend ourhedge and pricing positions due to the excess speculation involved in ourmarket. The end result was a significant loss on our hedge positions aswell as an inadequately priced physical coffee position. Fortunately, bothour hedging losses as well as high priced physicals have been washedthrough our income statement during this period."

"Going forward, we anticipate a return to 'business as usual' for ourcompany," said Mr. Gordon. "We continue to see our revenues increaseannually and we have a record of profitability during ten of the lasttwelve quarters since going public. Our balance sheet remains strong evenafter having paid out a $0.28 per share cash dividend in February as wellas the extraordinary loss incurred during this past fiscal period. Westand behind our stock and believe its current market price is by no meansrepresentative of its true value. For that reason, we will continue as acompany to buy our stock back as part of our publicly announced sharerepurchase program at every available opportunity."

"Finally, our much anticipated rollout of Entenmann's branded coffeeproducts occurred during this last quarter. Although we experiencedsignificant onetime costs in packaging development and slotting (productplacement) in conjunction with the rollout, those costs were neitherexcessive nor unanticipated. More importantly, the initial results both insales and consumer feedback on the product line are extremely positive andgive us a strong indication as to how successful Entenmann's coffee will bein the marketplace over the next several years."

"We realize the results for this period obviously are unacceptable to bothour management and our shareholder base," concluded Mr. Gordon. "In our 38years of existence, we have never underperformed and incurred losses ofthis magnitude. We firmly believe we will never see a repeat of thisperformance again. We look forward to a fresh start this upcomingquarter."

About Coffee Holding

Coffee Holding is a leading integrated wholesale coffee roaster and dealerin the United States and one of the few coffee companies that offers abroad array of coffee products across the entire spectrum of consumertastes, preferences and price points. Coffee Holding has been a familyoperated business for three generations and has remained profitable throughvarying cycles in the coffee industry and the economy. The Company'sprivate label and branded coffee products are sold throughout the UnitedStates, Canada and abroad to supermarkets, wholesalers, and individuallyowned and multi unit retail customers.

Any statements that are not historical facts contained in this release are"forward-looking statements" within the meaning of the Private SecuritiesLitigation Reform Act of 1995. It is possible that the assumptions made bymanagement for purposes of such statements may not materialize. Actualresults may differ materially from those projected or implied in anyforward-looking statements.