1

                                                                    Exhibit 99.1



IRVINE, Calif.--(BUSINESS WIRE)--March 17, 1999--Diedrich Coffee Inc.
(Nasdaq:DDRX - news), a leading retailer, wholesaler and custom roaster of
specialty coffee, and Coffee People Inc. (Nasdaq:MOKA - news) are pleased to
announce that they have executed a definitive agreement in which Diedrich Coffee
will acquire Coffee People.

This follows the signing of a letter of intent announced on Feb. 9, 1999.

This acquisition will position Diedrich Coffee as the second-largest company in
the retail specialty coffee market and as an industry leader in mall-based
retail coffee stores. The combined company will have annual systemwide sales of
more than $150 million through 363 outlets in 38 states and seven countries.

The company's brands will include Diedrich Coffee, Coffee People and Coffee
Plantation coffeehouses and Gloria Jean's mall-based retail coffee stores.

Under the terms of the agreement, Coffee People shareholders will receive $10.75
million in cash, 1,500,000 shares of Diedrich Coffee common stock, and $12.25
million in cash or a combination of cash and stock based on the successful
completion of a public equity offering by Diedrich Coffee.

As of March 17, there were 10,762,757 shares of Coffee People common stock
outstanding. Approximately 69 percent of Coffee People's outstanding shares are
owned by The Second Cup Ltd., which trades on the Toronto Stock Exchange under
the symbol SKL.

The transaction is expected to close during summer 1999, subject to a number of
conditions including the securing of financing and shareholder and regulatory
approval.

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 and 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 successful closing of this
transaction, impact of competition, the availability of working capital and
other risks and uncertainties described in detail under "Certain Factors and
Trends Affecting Diedrich Coffee and its Business" in the company's annual
report on form 10-K for the fiscal year ended Jan. 28, 1998, and in the
company's subsequent reports on form 10-Q, as well as in Coffee People's Form
10-K filed with the Securities and Exchange Commission on Sept. 25, 1998, and
Registration Statement on Form S-4 as filed with the Securities and Exchange
Commission on April 23, 1998.

Contact:

     Diedrich Coffee Inc.
     Dan Cahill, 310/966-5513 (media)
     Ann Wride, 949/260-6713 (investors)
       or
     Coffee People Inc.
     Dolores Chenoweth, 503/469-0338 (media)
     Mark Archer, 831/633-4001 (investors)