TORRANCE, Calif.--(BUSINESS WIRE)--Feb. 17, 2004--Farmer Bros. Co. (Nasdaq:FARM) today reported earnings for the second quarter ended December 31, 2003, of $2.6 million or $1.46 per share, compared with $5.9 million or $3.24 per share for the second quarter of fiscal 2003. Revenues were $51.5 million, compared with $54.1 million for the second quarter of last year. Dividends for the quarter were $0.95 per share versus $0.90 in the same period last year.

For the first six months of fiscal year 2004, the company reported earnings of $5.1 million or $2.87 per share, compared with $11.5 million or $6.26 per share in the prior fiscal year. Revenues were $97.2 million, compared with $104.5 million in fiscal 2003.

The company attributes the change in sales primarily to the weak economy. The results also reflect higher costs related to legal and other services associated with litigation and proxy matters; higher employee related costs including pensions and the Employee Stock Ownership Plan (ESOP); and the costs of implementing a new information system.

Farmer Bros. Co. is an institutional coffee roaster that sells a variety of coffee and allied products to the food service industry. The Company's signature trucks and vans bearing the "Consistently Good" logo are seen throughout Farmer Brothers' 28-state service area. Farmer Bros. has paid a dividend for 50 consecutive years, increased the dividend in each of the last seven consecutive years, and its stock price has risen from $18 in 1980 to over $300 a share today.

Farmer Bros. Co. reports the following unaudited financial results:

      Three Months Ended      Dec. 31, 2003         Dec. 31, 2002
                              -------------         -------------

                   Sales        $51,511,000           $54,118,000
              Net income         $2,565,000            $5,899,000

    Net income per share              $1.46                 $3.24



        First Six Months      Dec. 31, 2003         Dec. 31, 2002
                              -------------         -------------

                   Sales        $97,176,000          $104,507,000
      Cost of goods sold         34,971,000            37,821,000
            Gross profit         62,205,000            66,686,000
         Selling expense         45,284,000            43,560,000
 Administrative expenses         12,740,000             7,453,000
  Income from operations          4,181,000            15,673,000
            Other income          4,073,000             3,038,000
     Income before taxes          8,254,000            18,711,000
            Income taxes          3,178,000             7,204,000
              Net income         $5,076,000           $11,507,000

    Net income per share              $2.87                 $6.26
        Weighted average
      shares outstanding          1,767,097             1,836,747

---

Contact:

     The Abernathy MacGregor Group
     James Lucas, 213-630-6550