CANTON, MA - September 16, 2003 - Equal Exchange, the 60 person employee-owned cooperative that has led the nation in Fair Trade coffee sales since creating the category in 1986, expressed disappointment today at the very modest scope of Procter & Gamble's recent decision to begin selling a Fair Trade Certified™ coffee under its Millstone brand. (see http://www.csrwire.com/article.cgi/2117.html for additional details.)

Rink Dickinson, Equal Exchange co-founder and President stated, "We want what is best for small farmers, even if it means serious competition for us in the marketplace. Unfortunately, P&G, by far the nation's largest coffee company, isn't offering either. In fact, based on available information it appears that well less than 1% of P&G's coffee imports will ever be Fair Trade Certified™. They could easily do much, much more."

To draw attention to this gap between what farmers need and what large coffee companies like P&G are offering, Equal Exchange has issued a public challenge to the multi-national corporation. If in 2004 P&G can at least match the small Massachusetts cooperative pound for pound in Fair Trade coffee sales, then Equal Exchange will donate $25,000 to one of their small farmer cooperative trading partners in Latin America.

Dickinson added "We fear that the P&G decision will disappoint as many struggling farmers and concerned consumers as Starbuck's Fair Trade announcement several years ago. Neither company seems willing to honestly address the fundamental inequities inherent in the world coffee trade. If the likes of P&G and Starbucks, with their massive resources, can't commit to Fair Trade for even 1% of their coffee, their announcements appear more marketing driven than substance."

In an effort to demonstrate what is financially viable in the coffee industry Equal Exchange, a profitable and still growing 17 year old company, imports 100% of their coffee, tea and cocoa under Fair Trade terms, and in 2003 will import approximately 3,000,000 pounds of Fair Trade Certified coffee. The cooperative conservatively estimates that P&G's two major brands, Folgers and Millstone, together import over 500,000,000 pounds of green coffee every year. Others have estimated that P&G's annual Fair Trade volume may only reach 2 to 3 million pounds per year, but with no timeline given for even that amount.

Mr. Dickinson continued "With their massive volume of imports P&G has a huge opportunity to make a difference for farmers and send a signal to the rest of the industry. We'd like to see our competitors aspire to 100% Fair Trade. Unfortunately, their choice to only offer a single Fair Trade coffee, at a higher price, and not make it available in stores where people shop, says they're trying to do as little as possible."

Rob Everts, Equal Exchange's Co-Executive Director said, "With consumers more aware than ever before of poverty and sweatshop conditions overseas, they are looking to big companies to reform their behavior. Unfortunately, P&G's announcement will reinforce the well earned perception that big business continues to put profits before people, and image over substance."

Equal Exchange, the pioneer and U.S. market leader in fair trade coffee since 1986, is a quickly growing, full service provider of high quality, organic coffee, tea and cocoa to retailers, restaurants, and places of worship nationwide. To bring the Fair Trade model to more sectors, and more farmers, they have recently launched a nationally distributed organic, Fair Trade Certified™ cocoa baking powder. 100% of Equal Exchange products are fairly traded, benefiting 29 small farmer cooperatives in 14 countries around the world. Their Fair Trade products are distributed nationwide and are available in major supermarkets including Safeway, Albertsons, Kroger, Shaw's and Stop & Shop. In keeping with its business philosophy Equal Exchange is a worker cooperative, owned and controlled by its employees.