Unassociated Document

FOR IMMEDIATE RELEASE

Contact: Andrew Gordon, President & CEO

Telephone: (718) 832-0800

Coffee Holding Co., Inc. Reports Second Quarter and Six Month Earnings

BROOKLYN, New York - June 14, 2007. Coffee Holding Co., Inc. (AMEX:JVA) today announced its operating results for the three and six months ended April 30, 2007. In this release, the Company:

Reports sales growth of 18.2% for the quarter;

Reports a $623,122 increase in net income for the quarter; and

Reports net income of $0.06 per share for the quarter.

Net income equaled $338,888, or $.06 per share (basic and diluted), for the three months ended April 30, 2007 compared to a net loss of $284,234, or ($0.05) per share (basic and diluted), for the three months ended April 30, 2006. Net income equaled $648,592, or $.12 per share (basic and diluted), for the six months ended April 30, 2007 compared to net income of $235,404, or $0.04 per share (basic and diluted), for the six months ended April 30, 2006. The increase primarily reflects increased gross profit and was partially offset by increased operating expenses.

Net sales totaled $14,194,373 for the three months ended April 30, 2007, an increase of $2,183,445 or 18.2% from $12,010,928 for the three months ended April 30, 2006. Net sales totaled $26,829,485 for the six months ended April 30, 2007, an increase of $973,712 or 3.8% from $25,855,773 for the six months ended April 30, 2006. The increase in green coffee sales reflects higher sales of green coffee and private label coffee compared to the second quarter of fiscal year 2006.

“We are obviously pleased with our results for the quarter as operating margins returned to more historical levels. The price increases implemented at the beginning of 2007 were crucial in achieving these historical margins along with a favorable position in the green coffee markets were keys to a profitable quarter,” said Andrew Gordon, President and Chief Executive Officer.

“I am always pleased when we are able to grow our business at the rate we have (18.8% for the quarter) while maintaining normal operating margins. In doing so, we continue to meet the challenges of an ever increasing volatile economic environment and we hope to keep to improving our margins while growing our sales over the balance of fiscal 2007. With some exciting new business on the West Coast as well as our first substantial business with our Joint Venture - Generations Coffee Co. to begin in the immediate future, we believe our goals will be achievable.”

About Coffee Holding

Coffee Holding is a leading integrated wholesale coffee roaster and dealer in the United States and one of the few coffee companies that offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points. Coffee Holding has been a family operated business for three generations and has remained profitable through varying cycles in the coffee industry and the economy. The Company’s private label and branded coffee products are sold through the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi unit retail customers.

Any statements that are not historical facts contained in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company’s Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.

COFFEE HOLDING CO., INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

APRIL 30, 2007 AND OCTOBER 31, 2006

	April 30, 2007		October 31, 2006
	(unaudited)
- ASSETS -
CURRENT ASSETS:
Cash	$1,677,825		$1,112,165
Commodities held at broker	3,428,114		4,330,489
Accounts receivable, net of allowance for doubtful accounts of $420,349 for 2007 and 2006	4,589,560		6,534,848
Inventories	3,938,672		2,899,543
Prepaid expenses and other current assets	744,693		328,544
Prepaid and refundable taxes	6,710		302,003
Deferred tax asset		452,000		221,000
TOTAL CURRENT ASSETS		14,837,574		15,728,592

Property and equipment, at cost, net of accumulated depreciation of $4,317,727 and $4,159,274 for 2007 and 2006, respectively		2,458,544		2,138,951
Investment in joint venture		281,858		408,798
Due from joint venture, less reserve of $242,000 for 2007		220,030		73,658
Deposits and other assets		349,335		631,859
TOTAL ASSETS	$	18,147,341	$	18,981,858

- LIABILITIES AND STOCKHOLDERS' EQUITY -
CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	4,052,468	$	4,828,689
Income taxes payable		74,707		-
Line of credit borrowings		1,703,952		2,542,881
TOTAL CURRENT LIABILITIES		5,831,127		7,371,570

Deferred income tax liabilities		9,750		12,300
Deferred compensation payable		316,169		256,284
TOTAL LIABILITIES		6,157,046		7,640,154

MINORITY INTEREST		-		-

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Preferred stock, par value $.001 per share; 10,000,000 shares authorized; none issued		-		-
Common stock, par value $.001 per share; 30,000,000 shares authorized, 5,529,830 shares issued and outstanding for 2007 and 2006, respectively		5,530		5,530
Additional paid-in capital		7,327,023		7,327,023
Retained earnings		4,657,742		4,009,151
TOTAL STOCKHOLDERS' EQUITY		11,990,295		11,341,704
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,147,341	$	18,981,858

COFFEE HOLDING CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

SIX AND THREE MONTHS ENDED APRIL 30, 2007 AND 2006

(Unaudited)

	Six Months Ended April 30,						Three Months Ended April 30,
	2007			2006			2007			2006
NET SALES	$	26,829,485		$	25,855,773		$	14,194,373		$	12,010,928

COST OF SALES		22,553,727			22,667,636			12,087,210			11,148,234

GROSS PROFIT		4,275,758			3,188,137			2,107,163			862,964

OPERATING EXPENSES:
Selling and administrative		2,846,734			2,502,295			1,456,044			1,219,458
Writedown of amount due from joint venture		242,000			-			-			-
Bad debt expense		31,195			-			31,195			-
Officers’ salaries		234,449			272,180			117,437			136,205
TOTALS		3,354,378			2,774,475			1,604,676			1,355,663

INCOME (LOSS) FROM OPERATIONS		921,380			413,662			502,487			(492,969	)

OTHER INCOME (EXPENSE)
Interest income		66,576			57,289			32,460			26,723
Equity in loss of joint venture		(93,939	)		(5,322	)		(30,000	)		(5,322	)
Writedown of investment in joint venture		(33,000	)		-			-			-
Management fee income		12,046			-			-			-
Interest expense		(56,406	)		(38,225	)		(32,174	)		(22,766	)
Impairment loss - leasehold improvements		(31,892	)		-			(31,892	)		-
		(136,615	)		13,742			(61,606	)		(1,365	)

INCOME (LOSS) BEFORE INCOME TAXES AND MINORITY INTEREST IN SUBSIDIARY		784,765			427,406			440,881			(494,334	)

Benefit (provision) for income taxes		(140,050	)		(192,000	)		(102,200	)		210,100

INCOME (LOSS) BEFORE MINORITY INTEREST		644,715			-			338,681			-

Minority interest in subsidiary		3,877			-			207			-

NET INCOME (LOSS)	$	648,592		$	235,404		$	338,888		$	(284,234	)

Basic and diluted earnings (loss) per share	$	.12		$	.04		$	.06		$	(.05	)

COFFEE HOLDING CO., INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED APRIL 30, 2007 AND 2006

(Unaudited)

	2007			2006
OPERATING ACTIVITIES:
Net income	$	648,592		$	235,404
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		165,478			227,907
Writedown of amount due from joint venture		242,000			-
Loss from joint venture		93,939			5,322
Writedown of investment in joint venture		33,000			-
Deferred taxes		(233,550	)		29,300
Impairment loss		31,892			-
Changes in operating assets and liabilities:
Commodities held at broker		902,375			14,443
Accounts receivable		1,703,288			899,654
Inventories		(1,039,129	)		950,421
Prepaid expenses and other current assets		(416,149	)		(116,866	)
Prepaid and refundable income taxes		295,293			(104,607	)
Accounts payable and accrued expenses		(776,221	)		(502,758	)
Due from joint venture		(146,372	)		-
Deposits and other assets		14,021			(19,675	)
Income taxes payable		74,707			(217,064	)
Net cash provided by operating activities		1,593,164			1,401,485

INVESTING ACTIVITIES:
Purchases of property and equipment		(188,575	)		(113,756	)
Security deposits		-			(2,500	)
Investment in joint ventures		-			(450,501	)
Net cash (used in) investing activities		(188,575	)		(566,757	)

FINANCING ACTIVITIES:
Advances under bank line of credit		23,967,150			20,737,183
Principal payments under bank line of credit		(24,806,079	)		(20,920,638	)
Principal payments of obligations under capital leases		-			(1,329	)
Net cash (used in) financing activities		(838,929	)		(184,784	)

NET INCREASE IN CASH		565,660			649,944

Cash, beginning of year		1,112,165			735,468

CASH, END OF PERIOD	$	1,677,825		$	1,385,412

SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:
Interest paid	$	43,351		$	16,873
Income taxes paid	$	-		$	185,000

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES:

The Company utilized its deposit for the purchase of machinery and equipment	$	328,388			-