Progress was made last week in the initial phase of Forum explorations to develop strategic alternatives for Farmer Bros.

Prospective strategic relationships:  The Chapman Group, recently engaged to advise shareholder interests, has begun informal communications with organizations that appear to have the management resources needed to develop the full potential of Farmer Bros.’ coffee operations.  We expect to identify the top candidates for more detailed discussions within a couple of weeks.

Information requirements:  In a letter sent Friday, the text of which is copied below, the company’s new chairman and chief executive officer was asked to cooperate in the provision of the information that investors will be need in their consideration of strategic alternatives.  It has been suggested that we start with the relatively simple set of facts relating to the company’s real estate assets.  A cooperative process should allow us to avoid potentially significant costs and delays of obtaining information that the company would otherwise be obligated to provide through formal demands under either California’s or Delaware’s laws providing for shareholder rights to inspect records.

Control of stock held by family trusts:  The company’s corporate secretary responded to an October 11 Forum inquiry about control of stock in a letter dated October 12 and postmarked October 19, 2005, stating that he believed both the company and the "Farmer Family" were in "full compliance with their disclosure obligations," but also that the quoted statement by the company representative regarding the "Farmer Family Trusts" did not require correction.  The corporate secretary's letter did not state his relationship to the "Farmer Family" or to the "Farmer Family Trusts."  A scanned copy of the letter can be downloaded from the following link:

·         Letter dated October 12, 2005 (postmarked October 19, 2005) from John M. Anglin of Anglin Flewelling Rasmussen Campbell & Trytten LLP (210 KB, in PDF format)