EXHIBIT 99.1


                             [DIEDRICH COFFEE LOGO]


For Immediate Release
December 7, 2001

             DIEDRICH COFFEE ANNOUNCES ADDITION OF TWO BOARD MEMBERS

IRVINE, CA. DECEMBER 7, 2001 - DIEDRICH COFFEE, INC. (NASDAQ: DDRX), one of the
largest specialty coffee retailers in the United States, today announced that
Randy Powell and Richard Spencer have been appointed to the company's board of
directors. Powell, President of Maple Leaf Pork, a division of Maple Leaf Foods,
Inc., a Canadian company traded on the Toronto Stock Exchange, has extensive
operational, franchising and marketing experience in the food service industry.
Spencer has 15 years of strategic financial experience and is currently the
manager of Westcliff Capital Management, LLC, a privately owned investment
advisory firm in northern California.


"The Board has been focused over the last year on expanding the size and
experience of its membership," explained Paul C. Heeschen, the company's
Chairman. "The recently announced improvements in the operational performance of
the company permitted us to recruit individuals of this caliber. We had been in
discussions with both of these men over the last couple of months and I was very
pleased when they accepted our offer to join the board."


"I am delighted that Messrs. Spencer and Powell have agreed to join the board,"
commented J. Michael Jenkins, the company's chief executive officer. "Their
knowledge and experience will be valuable to our ongoing efforts to strengthen
the company at all levels."


The addition of Powell and Spencer to Diedrich Coffee's board brings the total
number of directors to six. The terms of the two new directors will be
concurrent with the four existing directors. All of the company's directors
stand for election each year at the Annual Meeting of Stockholders. In addition
to joining the board, Mr. Powell replaced Mr. Heeschen on the Audit Committee of
the board.

Powell previously served on Diedrich Coffee's Board from July 1999 to October
2000. Before assuming his present position with Maple Leaf Pork, Powell served
as president and CEO of Second Cup Ltd., a publicly traded Canadian coffee
company and the former parent company of Gloria Jean's Coffees, from August 1996
until November 2000. From 1993 until 1996, Powell was President and chief
operating officer of S.C. Johnson & Son, Limited.

Spencer has been manager or president of Westcliff Capital Management, LLC or
its predecessor company since May 1993. Westcliff Capital Management, LLC is an
investment advisor for investment funds and institutional and individual
investors. Westcliff Capital Management, LLC is deemed to beneficially own
approximately 21% of Diedrich Coffee's common stock because it is the general
partner of or investment advisor to a number of the company's stockholders.

ABOUT DIEDRICH COFFEE

With headquarters in Irvine, Diedrich Coffee specializes in sourcing, roasting
and selling the world's highest quality coffees. The company's two primary
brands are Diedrich Coffee, with retail coffeehouses primarily in California,
Colorado and Texas, and Gloria Jean's Coffees, the nation's leading retail chain
of mall-based coffee stores. The company's 369 retail outlets, the majority of
which are franchised, are located in 37 states and 11 foreign countries.
Diedrich Coffee also sells its coffees through more than 375 wholesale accounts
including office coffee service distributors,

restaurants and specialty retailers, and via mail order and the Internet. For
more information about Diedrich Coffee, call (800) 354-5282, or visit the
company's Web sites at www.diedrich.com and www.gloriajeans.com.

Forward Looking Statements

Statements in this news release that relate to future plans, financial results
or projections, events or performance are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E
of the Securities Exchange Act of 1934, as amended and fall under the safe
harbor. Actual results and financial position could differ materially from those
anticipated in the forward-looking statements as a result of a number of
factors, including, but not limited to, the ability to properly manage the
repayment of the company's indebtedness, the successful management of Diedrich
Coffee's growth strategy, the impact of competition, the availability of working
capital and other risks and uncertainties described in detail under "Risk
Factors and Trends Affecting Diedrich Coffee and its Business" in the company's
annual report on Form 10-K for the fiscal year ended June 27, 2001.

Investor Contact: Matt McGuinness, Chief Financial Officer     (949) 260-6734

Media Contact: Catherine Saar, VP Brand Development            (949) 260-6704