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<SEC-DOCUMENT>0001116502-09-000364.txt : 20090311
<SEC-HEADER>0001116502-09-000364.hdr.sgml : 20090311
<ACCEPTANCE-DATETIME>20090311093014
ACCESSION NUMBER:		0001116502-09-000364
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20090311
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090311
DATE AS OF CHANGE:		20090311

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COFFEE HOLDING CO INC
		CENTRAL INDEX KEY:			0001007019
		STANDARD INDUSTRIAL CLASSIFICATION:	BEVERAGES [2080]
		IRS NUMBER:				113860760
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32491
		FILM NUMBER:		09671296

	BUSINESS ADDRESS:	
		STREET 1:		4401 FIRST AVENUE
		STREET 2:		STE 1507
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11232
		BUSINESS PHONE:		7188320800

	MAIL ADDRESS:	
		STREET 1:		4401 FIRST AVENUE
		STREET 2:		STE 1507
		CITY:			BROOKLYN
		STATE:			NY
		ZIP:			11232

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TRANSPACIFIC INTERNATIONAL GROUP CORP
		DATE OF NAME CHANGE:	19960201
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>coffee8k.htm
<DESCRIPTION>CURRENT REPORT 3/11/2009
<TEXT>
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<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:4px solid #000000" align=right>&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:1.333px solid #000000" align=right>&nbsp;</P>
<P style="line-height:16pt; margin:0px; font-size:14pt" align=center><B>UNITED STATES</B></P>
<P style="line-height:16pt; margin:0px; font-size:14pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin-top:0px; margin-bottom:8.133px" align=center><B>Washington, D.C. 20549</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:16pt; margin-top:18.667px; margin-bottom:0px; font-size:14pt" align=center><B>FORM 8-K</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:8px; font-size:12pt" align=center><B>CURRENT REPORT</B></P>
<P style="margin:0px" align=center><B>Pursuant to Section 13 or 15(d) of </B></P>
<P style="margin:0px" align=center><B>The Securities Exchange Act of 1934</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>Date of Report (Date of earliest event reported): &nbsp;<B>March 11, 2009</B></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="line-height:20pt; margin-top:16px; margin-bottom:0px; font-size:18pt" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; font-size:8pt" align=center><I>(Exact name of registrant as specified in its charter)</I></P>
<P style="line-height:12.5pt; margin-top:3.533px; margin-bottom:3.533px; font-size:10.5pt" align=center><B><SUP>______________</SUP></B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=224></TD><TD width=224.067></TD><TD width=223.933></TD></TR>
<TR><TD valign=top width=224><P style="margin-top:6.667px; margin-bottom:0px" align=center><B>Nevada</B></P>
</TD><TD valign=top width=224.067><P style="margin-top:6.667px; margin-bottom:0px" align=center><B>001-32491</B></P>
</TD><TD valign=top width=223.933><P style="margin-top:6.667px; margin-bottom:0px" align=center><B>11-2238111</B></P>
</TD></TR>
<TR><TD valign=top width=224><P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; padding-left:13.467px; font-size:8pt" align=center><I>(State or other jurisdiction</I></P>
</TD><TD valign=top width=224.067><P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; font-size:8pt" align=center><I>(Commission</I></P>
</TD><TD valign=top width=223.933><P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; font-size:8pt" align=center><I>(IRS Employer</I></P>
</TD></TR>
<TR><TD valign=top width=224><P style="line-height:10pt; margin:0px; padding-left:26.933px; font-size:8pt" align=center><I>of incorporation)</I></P>
</TD><TD valign=top width=224.067><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><I>File Number)</I></P>
</TD><TD valign=top width=223.933><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><I>Identification No.)</I></P>
</TD></TR>
</TABLE>
<P style="margin-top:13.333px; margin-bottom:0px" align=center><B>4401 First Avenue, Brooklyn, New York11232-0005</B></P>
<P style="line-height:10pt; margin-top:2.667px; margin-bottom:0px; font-size:8pt" align=center><I>(Address of principal executive offices) (Zip Code)</I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>(718) 832-0800</B></P>
<P style="line-height:10pt; margin:0px; font-size:8pt" align=center><I>Registrant&#146;s telephone number, including area code</I></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><B>Not Applicable</B></P>
<P style="line-height:10pt; margin-top:2.667px; margin-bottom:10.667px; font-size:8pt" align=center><I>(Former name or former address, if changed since last report.)</I></P>
<P style="margin-top:0px; margin-bottom:8.867px; text-indent:48px">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</P>
<TABLE style="font-size:10pt" cellspacing=0><TR height=0 style="font-size:0"><TD width=15.733></TD><TD width=608.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=15.733><P>&nbsp;</P></TD><TD valign=top width=608.6><P style="margin:0px">&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=15.733><P>&nbsp;</P></TD><TD valign=top width=608.6><P>&nbsp;</P></TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=15.733><P>&nbsp;</P></TD><TD valign=top width=608.6><P style="margin:0px">&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=15.733><P>&nbsp;</P></TD><TD valign=top width=608.6><P>&nbsp;</P></TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=15.733><P>&nbsp;</P></TD><TD valign=top width=608.6><P style="margin:0px">&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=15.733><P>&nbsp;</P></TD><TD valign=top width=608.6><P>&nbsp;</P></TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=15.733><P>&nbsp;</P></TD><TD valign=top width=608.6><P style="margin:0px">&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:2.2px; padding-bottom:4px; border-bottom:1.333px solid #000000">&nbsp;</P>
<P style="margin:0px; padding-top:4px; border-top:4px solid #000000">&nbsp;</P>
<P style="margin-top:0px; margin-bottom:2.2px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
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<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-72px; page-break-before:always"><B>Item 2.02</B></P>
<P style="margin:0px; padding-left:72px"><B>Results of Operations and Financial Condition.</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:48px" align=justify>On March 11, 2009, Coffee Holding Co., Inc. issued a press release disclosing certain information regarding its results of operations for the three months ended January 31, 2009. &nbsp;A copy of the press release is attached as exhibit 99.1.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:72px; text-indent:-72px" align=justify><B>Item 9.01</B></P>
<P style="margin:0px; padding-left:72px" align=justify><B>Financial Statements and Exhibits.</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:80px; text-indent:-32px" align=justify>(d)</P>
<P style="margin:0px; padding-left:80px" align=justify>The following exhibit is furnished with this report:</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=82.867></TD><TD width=26.467></TD><TD width=419.933></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=82.867><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Exhibit No.</B></P>
</TD><TD valign=top width=26.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=419.933><P style="line-height:10pt; margin:0px; font-size:8pt"><B>Description</B></P>
</TD></TR>
<TR><TD valign=top width=82.867><P>&nbsp;</P></TD><TD valign=top width=26.467><P>&nbsp;</P></TD><TD valign=top width=419.933><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=82.867><P style="margin:0px; color:#0000FF" align=center><A HREF="coffee991.htm"><U>99.1</U></A><FONT style="color:#000000"></FONT></P>
</TD><TD valign=top width=26.467><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=419.933><P style="margin:0px">Coffee Holding Co., Inc. press release dated March 11, 2009</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px" align=center>2</P>
<P style="margin:0px"><BR></P>
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<P style="margin:0px; page-break-before:always" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:20px" align=center><B>SIGNATURES</B></P>
<P style="margin-top:0px; margin-bottom:20px; text-indent:48px">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<P style="margin:0px; text-indent:48px">Dated: &nbsp;March 10, 2009</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=334.6></TD><TD width=43.067></TD><TD width=246.333></TD></TR>
<TR><TD valign=top width=334.6><P>&nbsp;</P></TD><TD valign=top width=289.4 colspan=2><P style="margin:0px"><B>COFFEE HOLDING CO., INC.</B></P>
</TD></TR>
<TR><TD valign=top width=334.6><P>&nbsp;</P></TD><TD valign=top width=43.067><P>&nbsp;</P></TD><TD valign=top width=246.333><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=334.6><P>&nbsp;</P></TD><TD valign=top width=43.067><P>&nbsp;</P></TD><TD valign=top width=246.333><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=334.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=43.067><P style="margin:0px">By:</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=246.333><P style="line-height:normal; margin:0px">/s/ A<FONT style="font-size:6pt">NDREW</FONT> G<FONT style="font-size:6pt">ORDON</FONT></P>
</TD></TR>
<TR><TD valign=top width=334.6><P>&nbsp;</P></TD><TD valign=top width=43.067><P style="margin:0px">Name: </P>
</TD><TD valign=top width=246.333><P style="margin:0px">Andrew Gordon </P>
</TD></TR>
<TR><TD valign=top width=334.6><P>&nbsp;</P></TD><TD valign=top width=43.067><P style="margin:0px">Title:</P>
</TD><TD valign=top width=246.333><P style="margin:0px">President and Chief Executive Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px" align=center>3</P>
<P style="margin:0px"><BR></P>
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<P style="margin-top:0px; margin-bottom:20px; page-break-before:always" align=center><B>EXHIBIT INDEX</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=82.8></TD><TD width=26.467></TD><TD width=420></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=82.8><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>Exhibit No.</B></P>
</TD><TD valign=top width=26.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=420><P style="line-height:10pt; margin:0px; font-size:8pt"><B>Description</B></P>
</TD></TR>
<TR><TD valign=top width=82.8><P>&nbsp;</P></TD><TD valign=top width=26.467><P>&nbsp;</P></TD><TD valign=top width=420><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=82.8><P style="margin:0px; color:#0000FF" align=center><A HREF="coffee991.htm"><U>99.1</U></A><FONT style="color:#000000"></FONT></P>
</TD><TD valign=top width=26.467><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=420><P style="margin:0px">Coffee Holding Co., Inc. press release dated March 11, 2009</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>coffee991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<A NAME="_Ref3977756"></A><P style="margin-top:0px; margin-bottom:11.133px" align=right><B>EXHIBIT 99.1</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt"><B>FOR IMMEDIATE RELEASE</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; font-size:11pt">Contact:</P>
<P style="line-height:13pt; margin:0px; text-indent:87.267px; font-size:11pt">Andrew Gordon, President &amp; CEO</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; font-size:11pt">Telephone:</P>
<P style="line-height:13pt; margin:0px; text-indent:87.267px; font-size:11pt">(718) 832-0800</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:14pt; margin-top:0px; margin-bottom:10.667px; font-size:12pt" align=center><B>Coffee Holding Co., Inc. Reports Quarter End Results</B></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:48px; font-size:11pt">BROOKLYN, New York &#150; March 11, 2009. &nbsp;Coffee Holding Co., Inc. (AMEX: JVA) today announced its operating results for the three months ended January 31, 2009. &nbsp;In this release, the Company:</P>
<A NAME="OLE_LINK1"></A><P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-family:Wingdings; font-size:11pt">&#159;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; padding-left:72px; font-size:11pt">Reports net income of $391,801, or $0.07 per share (basic and diluted) for the three months ended January 31, 2009</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-family:Wingdings; font-size:11pt">&#159;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; padding-left:72px; font-size:11pt">Reports net sales of $18,857,870 for the three months ended January 31, 2009; and</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:-17.333px; padding-left:72px; text-indent:-24px; font-family:Wingdings; font-size:11pt">&#159;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; padding-left:72px; font-size:11pt">Reports sales growth of 26% for the three months ended January 31, 2009 compared to the three months ended January 31, 2008.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:49.867px; font-size:11pt">We had a net income of $391,801, or $0.07 per share (basic and diluted), for the three months ended January 31, 2009 compared to net income of $182,265, or $0.03 per share (basic and diluted), for the three months ended January 31, 2008. &nbsp;The increase in net income primarily reflects increased net sales, which resulted in an increase in gross profit.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:49.867px; font-size:11pt">Net sales totaled $18,857,870 for the three months ended January 31, 2009, an increase of $3,895,329, or 26%, from $14,962,541 for the three months ended January 31, 2008. &nbsp;The increase in net sales reflects both increased amounts of green coffee, branded coffee and private label coffee sold as well as increased sales prices compared to the first quarter of fiscal 2008.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:49.867px; font-size:11pt">Cost of sales for the three months ended January 31, 2009 was $16,742,775 or 88.8% of net sales, as compared to $13,082,423 or 87.4% of net sales for the three months ended January 31, 2008. &nbsp;The increase in cost of sales primarily reflects the increased cost of green coffee. &nbsp;Green coffee purchases increased $3,019,335 from $11,328,822 to $14,348,157 due to higher private label and green coffee sales volumes. &nbsp;Net gains on options and futures contracts, a component of cost of sales, equaled $283,011 for the first quarter of fiscal 2009 compared to $593,443 for the first quarter of fiscal 2008.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:49.867px; font-size:11pt">Total operating expenses decreased by $133,621, or 8.7%, to $1,406,680 for the three months ended January 31, 2009 from $1,540,301 for the three months ended January 31, 2008. &nbsp;The decrease in operating expenses was due to decreases in selling and administrative expense of $122,093 and officers&#146; salaries of $11,528. &nbsp;The decrease in selling and administrative expenses mainly reflects decreases of approximately $88,000 in office salaries and the corresponding payroll costs, $31,000 in repairs and maintenance costs, $14,000 in equipment rental costs, $20,000 in licensing fees, $16,000 of show &amp; demo costs and $12,000 of packaging development costs partially offset by increases of &nbsp;$35,000 in insurance costs and $14,000 in setup costs for the Entenmann&#146;s products. &nbsp;The decrease in office salaries reflects our continued efforts to streamline the company to remain competitive. &
nbsp;The decrease in repairs and maintenance and equipment rental reflects the rewards of our continued investment in upgrading our equipment. &nbsp;The decrease in licensing and packaging development is due to our being in year two of our Entenmann&#146;s production. &nbsp;&nbsp;The increase in insurance costs reflects the increased cost of workers compensation coverage. The increase in setup costs reflect costs incurred to promote our Entenmanns&#146;s coffee products outside of the New York market. </P>
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<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>1</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="line-height:normal; margin-top:0px; margin-bottom:9.8px; text-indent:49.867px; font-size:11pt; page-break-before:always">We will be closing our manufacturing operations at our Brooklyn location on or about March 27, 2009. &nbsp;The majority of our processing will be moved to our Colorado facility with our Generations facility in Brecksville, Ohio becoming more involved with our everyday coffee purchasing. &nbsp;We have leased office and warehouse space located in Staten Island to house the corporate offices and serve as temporary storage of our product. &nbsp;We plan to sell the property located in Brooklyn in the near future. &nbsp;The sale of our Brooklyn property will enhance our already strong cash position and liquidity.<FONT style="font-family:Courier New; font-size:10pt"> &nbsp;</FONT>We believe that these measures will reduce operating expenses, increase efficiencies and ultimately increase the profitability of our company. </P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:49.867px; font-size:11pt">&#147;In these challenging times, we were happy to be able to perform as we did in this last quarter. &nbsp;&nbsp;Our cost cutting initiatives that took effect over the last few months found their way to the bottom line to show improved operating results and higher profits. &nbsp;Additionally, these cost cutting measures and attempts for higher margins did not come at the expense of sales as our revenues grew by almost $4 million, or 26 %, during this period even with the underlying price of green coffee approximately 15% lower year over year,&#148; said Andrew Gordon, President and Chief Executive Officer. &nbsp;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:48px; font-size:11pt">&#147;With the closing of our Brooklyn facility sometime in the next 30 days, we expect to see even more cost savings and gain additional production efficiencies by operating mainly out of our larger, more spacious and newer production facility in La Junta, Colorado. &nbsp;Although we expect some increase in freight costs as we move finished product back East, these costs will be highly manageable as our original calculations were based on a much higher crude oil and distillate prices.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:48px; font-size:11pt">Our new credit line with Sterling National Bank will also improve our liquidity as it increases our borrowing base by 10% more than what was available under our previous line with Merrill Lynch. &nbsp;</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:48px; font-size:11pt">We remain cognizant and prepared for the potential problems that exist in the current economic environment, but we believe we are continuing to move in the right direction as a company,&#148; Mr. Gordon added.</P>
<P style="margin-top:0px; margin-bottom:9.8px"><BR></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; font-size:11pt"><I>About Coffee Holding</I></P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:48px; font-size:11pt">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. &nbsp;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. &nbsp;The Company&#146;s private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers.</P>
<P style="line-height:13pt; margin-top:0px; margin-bottom:9.8px; text-indent:48px; font-size:11pt">Any statements that are not historical facts contained in this release are &#147;forward-looking statements&#148; 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. &nbsp;Actual results may differ materially from those projected or implied in any forward-looking statements. &nbsp;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&#146;s Securities and Exchange Commission filings. &nbsp;The Company undertakes no obligation to upda
te or revise any forward-looking statement for events or circumstances after the date on which such statement is made.</P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>2</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<A NAME="_Toc223995644"></A><P style="margin-top:0px; margin-bottom:13.333px" align=center><B>CONDENSED CONSOLIDATED BALANCE SHEETS<BR>
JANUARY 31, 2009 AND OCTOBER 31, 2008</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=436.133></TD><TD width=18.4></TD><TD width=7.333></TD><TD width=65.867></TD><TD width=18.333></TD><TD width=7.333></TD><TD width=65.867></TD><TD width=4.733></TD></TR>
<TR><TD valign=bottom width=436.133><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=73.2 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>January 31,<BR>
2009</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=73.2 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>October 31,<BR>
2008</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=73.2 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>(unaudited)</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px" align=center><B>- ASSETS -</B></P>
</TD><TD valign=bottom width=18.4><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px"><B>CURRENT ASSETS:</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Cash and cash equivalents</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>1,844,462</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>963,298</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Commodities held at broker</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>775,608</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>342,269</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Accounts receivable, net of allowances of &nbsp;$141,915 for 2009 and 2008</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>8,025,381</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>9,067,797</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Inventories</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>4,803,494</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>5,046,554</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Prepaid expenses and other current assets</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>252,773</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>284,900</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Prepaid and refundable income taxes</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>1,014,799</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>1,025,935</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Deferred income tax assets</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px; font-family:Times New Roman Bold" align=right><B>612,877</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right>923,877</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px"><B>TOTAL CURRENT ASSETS</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>17,329,394</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>17,654,630</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:8px; text-indent:-8px">Property and equipment, at cost, net of accumulated depreciation of<BR>
$5,161,629 and &nbsp;$5,020,573 for 2009 and 2008, respectively</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>2,730,321</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>2,804,053</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px">Deposits and other assets</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right><B>550,606</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right>542,893</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:40px; text-indent:-8px"><B>TOTAL ASSETS</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin:0px; font-family:Times New Roman Bold"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=65.867><P style="margin:0px; font-family:Times New Roman Bold" align=right><B>20,610,321</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.333><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=65.867><P style="margin:0px" align=right>21,001,576</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px" align=center><B>- LIABILITIES AND STOCKHOLDERS' EQUITY -</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px"><B>CURRENT LIABILITIES:</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Accounts payable and accrued expenses</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>8,839,811</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>9,120,124</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Line of credit borrowings</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right>&#151;</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right>3,522,207</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:40px; text-indent:-8px"><B>TOTAL CURRENT LIABILITIES</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>8,839,811</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>12,642,331</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px">Line of credit borrowings</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>3,082,076</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px">Deferred income tax liabilities</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>39,500</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>86,000</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px">Deferred rent </P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>77,236</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>69,959</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px">Deferred compensation payable</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right><B>331,932</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right>352,637</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:40px; text-indent:-8px"><B>TOTAL LIABILITIES</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right><B>12,370,555</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right>13,150,927</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px"><B>MINORITY INTEREST</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right><B>4,674</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right>3,226</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px"><B>COMMITMENTS AND CONTINGENCIES</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P>&nbsp;</P></TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px"><B>STOCKHOLDERS' EQUITY:</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P>&nbsp;</P></TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Preferred stock, par value $.001 per share; 10,000,000 shares<BR>
authorized; none issued</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>&#151;</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Common stock, par value $.001 per share; 30,000,000 shares<BR>
authorized, 5,529,830 shares issued for 2009 and 2008</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>5,530</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>5,530</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Additional paid-in capital</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>7,327,023</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>7,327,023</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Retained earnings</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right><B>1,196,406</B></P>
</TD><TD valign=bottom width=18.333><P>&nbsp;</P></TD><TD valign=bottom width=7.333><P>&nbsp;</P></TD><TD valign=bottom width=65.867><P style="margin:0px" align=right>804,605</P>
</TD><TD valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:24px; text-indent:-8px">Less: Treasury stock, 87,614 and 84,314 common shares, at cost<BR>
for 2009 and 2008, respectively</P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right><B>(293,867</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.333><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right>(289,735</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.733><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:40px; text-indent:-8px"><B>TOTAL STOCKHOLDERS' EQUITY</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right><B>8,235,092</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=18.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=7.333><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=65.867><P style="margin:0px" align=right>7,847,423</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=436.133><P style="margin:0px; padding-left:56px; text-indent:-8px"><B>TOTAL LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></P>
</TD><TD valign=bottom width=18.4><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin:0px; font-family:Times New Roman Bold"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=65.867><P style="margin:0px; font-family:Times New Roman Bold" align=right><B>20,610,321</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=18.333><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=bottom width=7.333><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=65.867><P style="margin:0px" align=right>21,001,576</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=bottom width=4.733><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>3</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; font-family:Times New Roman Bold; page-break-before:always" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<A NAME="_Toc223995645"></A><P style="margin-top:0px; margin-bottom:13.333px; font-family:Times New Roman Bold" align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF INCOME <BR>
THREE MONTHS ENDED JANUARY 31, 2009 AND 2008 (UNAUDITED)</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=424.733></TD><TD width=19.467></TD><TD width=7.733></TD><TD width=69.867></TD><TD width=19.467></TD><TD width=7.733></TD><TD width=69.867></TD><TD width=5.133></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=77.6 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>2009</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=77.6 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>2008</P>
</TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px"><B>NET SALES</B></P>
</TD><TD valign=top width=19.467><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD valign=top width=7.733><P style="margin:0px"><B>$</B></P>
</TD><TD valign=top width=69.867><P style="margin:0px" align=right><B>18,857,870</B></P>
</TD><TD valign=top width=19.467><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=7.733><P style="margin:0px">$</P>
</TD><TD valign=top width=69.867><P style="margin:0px" align=right>14,962,541</P>
</TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px"><B>COST OF SALES</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right><B>16,742,775</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right>13,082,423</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px"><B>GROSS PROFIT</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right><B>2,115,095</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right>1,880,118</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px"><B>OPERATING EXPENSES:</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px; padding-left:24px; text-indent:-8px">Selling and administrative</P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P style="margin:0px" align=right><B>1,256,831</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P style="margin:0px" align=right>1,378,924</P>
</TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px; padding-left:24px; text-indent:-8px">Officers&#146; salaries</P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right><B>149,849</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right>161,377</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px; padding-left:40px; text-indent:-8px"><B>TOTALS</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right><B>1,406,680</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right>1,540,301</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px"><B>INCOME FROM OPERATIONS</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right><B>708,415</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right>339,817</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px"><B>OTHER INCOME (EXPENSE):</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px; padding-left:24px; text-indent:-8px">Interest income</P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P style="margin:0px" align=right><B>2,265</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P style="margin:0px" align=right>24,271</P>
</TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px; padding-left:24px; text-indent:-8px">Interest expense</P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right><B>(40,794</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.467><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right>(29,006</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px; padding-left:40px; text-indent:-8px"><B>TOTALS</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right><B>(38,529</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.467><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right>(4,735</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px; padding-left:8px; text-indent:-8px"><B>INCOME BEFORE PROVISION FOR INCOME TAXES AND<BR>
MINORITY INTEREST &nbsp;IN SUBSIDIARY</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P style="margin:0px" align=right><B>669,886</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P style="margin:0px" align=right>335,082</P>
</TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px; padding-left:24px; text-indent:-8px">Provision for income taxes</P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right><B>276,636</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right>142,051</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px"><B>INCOME BEFORE MINORITY INTEREST</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P style="margin:0px" align=right><B>393,250</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P style="margin:0px" align=right>193,031</P>
</TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px; padding-left:24px; text-indent:-8px">Minority interest in loss of subsidiary</P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right><B>(1,449</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.467><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=69.867><P style="margin:0px" align=right>(10,766</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.133><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px"><B>NET INCOME</B></P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.733><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=top width=69.867><P style="margin:0px" align=right><B>391,801</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.733><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=top width=69.867><P style="margin:0px" align=right>182,265</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px">Basic and diluted earnings per share</P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.733><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=top width=69.867><P style="margin:0px" align=right><B>.07</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.733><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=top width=69.867><P style="margin:0px" align=right>.03</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px">Weighted average common shares outstanding:</P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD valign=top width=7.733><P>&nbsp;</P></TD><TD valign=top width=69.867><P>&nbsp;</P></TD><TD valign=top width=5.133><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=424.733><P style="margin:0px; padding-left:40px; text-indent:-8px">Basic and diluted</P>
</TD><TD valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=69.867><P style="margin:0px" align=right><B>5,442,603</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=19.467><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.733><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=69.867><P style="margin:0px" align=right>5,506,326</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=5.133><P>&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>4</P>
<P style="margin:0px"><BR></P>
<HR style="margin-top:9.6px; margin-bottom:9.6px" noshade size=1.333>
<P style="margin:0px; page-break-before:always" align=center><B>COFFEE HOLDING CO., INC.</B></P>
<A NAME="_Toc223995646"></A><P style="margin-top:0px; margin-bottom:13.333px" align=center><B>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>
THREE MONTHS ENDED JANUARY 31, 2009 AND 2008 (UNAUDITED)</B></P>
<TABLE style="font-size:10pt" cellspacing=0 align=center><TR height=0 style="font-size:0"><TD width=412.6></TD><TD width=19.6></TD><TD width=7.867></TD><TD width=75.6></TD><TD width=19.6></TD><TD width=7.867></TD><TD width=75.6></TD><TD width=5.267></TD></TR>
<TR><TD valign=top width=412.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=83.467 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center><B>2009</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=83.467 colspan=2><P style="line-height:10pt; margin:0px; font-size:8pt" align=center>2008</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px"><B>OPERATING ACTIVITIES:</B></P>
</TD><TD valign=top width=19.6><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>
</TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=top width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=top width=75.6><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:24px; text-indent:-8px">Net income</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P style="margin:0px"><B>$</B></P>
</TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>391,801</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P style="margin:0px">$</P>
</TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>182,265</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:24px; text-indent:-8px">Adjustments to reconcile net income to net cash provided by<BR>
operating activities:</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Unrealized (gains) losses on options and futures</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>(130,636</B></P>
</TD><TD valign=top width=19.6><P style="margin:0px">)</P>
</TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>8,863</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Depreciation and amortization</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>141,056</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>119,572</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Deferred rent amortization</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>7,277</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>&#151;</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Deferred income taxes</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>264,500</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>(8,500</P>
</TD><TD valign=top width=5.267><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Minority interest</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>1,449</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>10,766</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:32px; text-indent:-8px">Changes in operating assets and liabilities:</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Commodities held at broker</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>(302,703</B></P>
</TD><TD valign=top width=19.6><P style="margin:0px">)</P>
</TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>376,796</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Accounts receivable</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>1,042,416</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>1,587,124</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Inventories</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>243,060</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>(237,416</P>
</TD><TD valign=top width=5.267><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Prepaid expenses and other assets</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>32,127</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>18,591</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Prepaid and refundable income taxes</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>11,136</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>127,694</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Accounts payable and accrued expenses</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>(280,313</B></P>
</TD><TD valign=top width=19.6><P style="margin:0px">)</P>
</TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>(1,825,256</P>
</TD><TD valign=top width=5.267><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:40px; text-indent:-8px">Deposits and other assets</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=75.6><P style="margin:0px" align=right><B>(28,419</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=75.6><P style="margin:0px" align=right>41,813</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:56px; text-indent:-8px"><B>Net cash provided by operating activities</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.6><P style="margin:0px" align=right><B>1,392,751</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.6><P style="margin:0px" align=right>402,312</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px"><B>INVESTING ACTIVITIES:</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:24px; text-indent:-8px">Purchases of property and equipment</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.6><P style="margin:0px" align=right><B>(67,324</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.6><P style="margin:0px" align=right>(107,965</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.267><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:56px; text-indent:-8px"><B>Net cash (used in) investing activities</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.6><P style="margin:0px" align=right><B>(67,324</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.6><P style="margin:0px" align=right>(107,965</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.267><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=412.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px"><B>FINANCING ACTIVITIES:</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:24px; text-indent:-8px">Advances under bank line of credit</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>14,919,844</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>14,282,082</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:24px; text-indent:-8px">Principal payments under bank line of credit</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>(15,359,975</B></P>
</TD><TD valign=top width=19.6><P style="margin:0px">)</P>
</TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>(14,290,020</P>
</TD><TD valign=top width=5.267><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:24px; text-indent:-8px">Purchase of treasury stock</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=75.6><P style="margin:0px" align=right><B>(4,132</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=75.6><P style="margin:0px" align=right>(88,017</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.267><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:56px; text-indent:-8px"><B>Net cash (used in) financing activities</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.6><P style="margin:0px" align=right><B>(444,263</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.6><P style="margin:0px">)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.6><P style="margin:0px" align=right>(95,955</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.267><P style="margin:0px">)</P>
</TD></TR>
<TR><TD valign=top width=412.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=top width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=top width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px"><B>NET INCREASE IN CASH</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right><B>881,164</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P style="margin:0px" align=right>198,392</P>
</TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:24px; text-indent:-8px">Cash and cash equivalents, &nbsp;beginning of year</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.6><P style="margin:0px" align=right><B>963,298</B></P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=7.867><P>&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=75.6><P style="margin:0px" align=right>890,649</P>
</TD><TD style="border-bottom:1px solid #FFFFFF" valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px"><B>CASH, END OF PERIOD</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.867><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=75.6><P style="margin:0px" align=right><B>1,844,462</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.867><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=75.6><P style="margin:0px" align=right>1,089,041</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px"><B>SUPPLEMENTAL DISCLOSURE OF CASH FLOW DATA:</B></P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD valign=top width=7.867><P>&nbsp;</P></TD><TD valign=bottom width=75.6><P>&nbsp;</P></TD><TD valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:24px; text-indent:-8px">Interest paid</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.867><P style="margin:0px"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=75.6><P style="margin:0px" align=right><B>51,879</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.867><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=75.6><P style="margin:0px" align=right>19,515</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=5.267><P>&nbsp;</P></TD></TR>
<TR><TD valign=top width=412.6><P style="margin:0px; padding-left:24px; text-indent:-8px">Income taxes paid</P>
</TD><TD valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.867><P style="margin:0px; font-family:Times New Roman Bold"><B>$</B></P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=75.6><P style="margin:0px; font-family:Times New Roman Bold" align=right><B>&#151;</B></P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=19.6><P>&nbsp;</P></TD><TD style="border-bottom:3px double #000000" valign=top width=7.867><P style="margin:0px">$</P>
</TD><TD style="border-bottom:3px double #000000" valign=bottom width=75.6><P style="margin:0px" align=right>24,962</P>
</TD><TD style="border-bottom:3px double #FFFFFF" valign=top width=5.267><P>&nbsp;</P></TD></TR>
</TABLE>
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<P style="margin:0px"><BR>
<BR></P>
<P style="line-height:13pt; margin:0px; font-size:11pt" align=center>5</P>
<P style="margin:0px"><BR></P>
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