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Caribou Coffee Company Inc., the second largest company owned gourmet coffeehouse operator in terms of coffeehouses, announced that fourth quarter of 2005 and fiscal year 2005 total net sales increased 15 percent and 23 percent, respectively. Total net sales for the fourth quarter of 2005 and fiscal year 2005 represents a new total net sales record for both periods. Total net sales were $56.4 million in the fourth quarter of 2005 and $198.0 million for the fiscal year 2005. The per share loss before the cumulative effect of accounting change for the fourth quarter of 2005 and fiscal year 2005 was ($0.01) and ($0.29), respectively. The loss per share after the cumulative effect of accounting change for the fourth quarter of 2005 and the fiscal year 2005 was ($0.03) and ($0.32), respectively.

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