August 8, 2007

Barista's Daily Grind would like to announce the official continuation of our products and services here in the Kearney area. Ryan Dennhardt, our Barista Champion and corporate trainer will be presenting permanently at the corner of 13th & 25th just south of UNK. The building was formally occupied by Theo's. Ryan and staff will begin serving you on Friday August 10th at 6:30am. The facility will be remodeled to create a Barista's atmosphere--including outdoor seating. Our full espresso menu will be available along with our usual Bakery items, Catering options and Odwalla products. The drive through service at the new location will be available very soon.

As you can imagine everyone is excited to move forward and we all hope you will join us at this new location. Every attempt was made to find a location in the downtown area and after much consideration we are pleased to have a place to call home. Hansen Photography has been so kind to extend us the space in front of his business and inside of his office. Without this generosity we would not have been able to continue. A big thank you to Russ!

We have spent eight years of our life planning for and being in the coffee business. We miss the daily visits with our staff and customers and look forward to seeing everyone again on a regular basis. Steve and I will continue to be involved in the coffee industry along with maintaining our responsibilities with our franchise programs. Our job locally will be to provide leadership and encouragement to staff as they carry on the Barista's Daily Grind tradition.

Ben Gasper and Steph Paulson will continue as they have for the past two years with the Kiosk program. There will be no interruption to the products and services that we have been providing to offices, clinics and private events for the past five years. Crystal and staff are still eagerly looking for a location here in Kearney. She will be actively involved in the 13th street Barista's until such time.

All of us have been deeply moved by the support our community has extended to us. We are humbled to know the depths of your concern and commitment to Barista's Daily Grind. A company is the people it keeps and each one is a special part of our character. "Your work is a mirror image of yourself and the company you work for. What shows on the outside is a good indication of what is taking place on the inside". The inside of Barista's Daily Grind will continue on. We always counted it an honor to dump the trash, a full trash can is a good thing. I hope to dump the trash again soon…

-Steve and Cathy

Announcing!!!

KEARNEY Barista's Daily Grind TEMPORARY Location

for your convenince, we'll provide services for you in the following ways:

WALK UP / CALL AHEAD CURBSIDE / SCHEDULED FREE DELIVERY

Central Avenue - In front of Hansen Photography next to the World Theater 440-9530

General #: 236-8728

As has been widely publicized and most of you know, we are currently involved in legal disputes with a local law firm concerning the franchise documents prepared by their firm to support the legal needs of our franchising division. The errant documents authored by our former counsel led to an inability to continue our franchise efforts due to federal and state sanctions and created significant financial challenges, lawsuits, fines and liabilities.

Since the beginning of this disruption to our business, we have been in the process of acquiring investors and investment monies in an effort to continue to serve you our valued local customers. Our national and local vendors, sympathetic to our situation, have agreed to work with us through this time. We also put in place a working agreement with Kearney State Bank, allowing us to secure investor funds, continue operations, and ensure that our vendors and the bank are paid in full. Our agreement allowed us, our investors, and the bank to work together to meet the needs of all involved, including you, our customer, allowing for continued operations with no interruption of service as we continue the lengthy ongoing process of litigation.

We were scheduled to complete all transactions by July 30th. For reasons unknown, KSB made the decision to alter the parameters of our agreement to unreasonable terms therefore demanding we vacate our premises, surrender all our property-including our home, by 5:00pm on Thursday July 5th.

Barista's Daily Grind has friends in the industry who are helping to provide equipment for our use as we prepare to serve you from three temporary locations through out our community until we can relocate in permanent facilities or find a solution that allows us back into our properties.

All of our efforts are focused on maintaining our relationship with you-our valued customer-as we transition through this difficult time. Thank you in advance for continuing to choose Barista's Daily Grind.

UPDATES

Wednesday July 18, 2007 9:30 PM

All of us at Barista's Daily Grind want to thank everyone for your continued support and encouraging words. There has been a lot of things in the news and it is difficult for us to not respond to everything we read and hear. As you can imagine, we have to choose our printed words carefully due to the nature of our lawsuits. Steve and I would welcome your phone calls or the opportunity to sit down and visit with you if you have questions of us. As our friends and customers, it is important that to us that you have a full understanding should you desire to. You helped us to grow our business and we feel you are entitled should you have an interest. We are looking forward to Cruise Night and hope to see you there.

Tuesday July 10, 2007 6:31 PM

We will resume business in front of Hansen photography next to the world theater Thursday morning at 6:30. Our complete drink menu will be available from the Kiosk. Staff will be providing customers with brewed coffee during the interim Wednesday morning at the same location.

Tuesday July 10, 2007 4:30 PM

Everything that has happened to Barista's Daily Grind and its friends during the last few weeks has been a waste of time, money and emotion. None of what has happened to us was necessary and the reasons go unknown.

Barista's Daily Grind opened in December of 2001. We put our trust in a professional support team that included the attorneys that prepared and handled the legal documents for our franchise program and KSB as our financial partner. We believed in the good faith of KSB upon entering into the recent agreements with them. Our business has not failed; the foundation of professional resources we depended on has failed. For today we will continue to seek equitable resolution as we work through the process of litigation involving the Jacobsen/ Orr law firm and will take what steps we are able to in response to the actions of Kearney State Bank. We do not believe that KSB is entitled to all of the equipment they took from us. The banks actions are not the end of the process, there is a next step and a hearing to be had. As we connect the dots of our circumstances we are finding a very subversive networking of relationships long ago established.

Steve and I appreciate the numerous cards, letters and support that the community has shown to us and our staff. All of us are humbled by your kind words. We have not surrendered our hope and will seek every possible option to reopen our businesses as we continue to support the franchise stores and locations.

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We will not be able to have a press conference today, Thursday as planned. Our time is running short and our first priority is to be out of the properties and our home by the deadline of 5:00pm. I apologize for the postponement. With all due respect, we went from planning a family Fourth of July party to suddenly moving from our home and relocating our businesses inside of 5 days. When time allows we will release a statement or reschedule a press conference.

We will be serving from our Central Ave. drive-thru and walk up window until 2:00pm Thursday. Friday morning at 6:30am we will be located in front of Hansen Photography /440-9530 next to the world theater. Our full menu will be available. Curbside serve and call ahead orders will also be available.

We will offer FREE delivery service anywhere in Kearney you may call your order or fax too. Finally, a standing delivery may also be scheduled to your work place. (440-1594 or 236-8728).

In the event we are unable to continue to care for the flowers, we are looking for foster homes for the hanging baskets. Please call or email us if you are a possible candidate.

Please email comments or questions to team@baristasdailygrind.com, we'll post as many responses as we can.