Forum for Shareholders of Farmer Bros. Co.

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2007 Conclusion

Forum activities relating to Farmer Bros. Co. were suspended in 2007, following the second year of new management.

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Statement of Franklin Mutual Advisers

(April 18, 2002)

The following statement about Farmer Brothers ("Issuer") was made by Franklin Mutual Advisers, LLC ("FMA"), the manager of funds owning approximately 9.7% of Farmer Brothers shares, in the Section for Items 4 and 5 of an SEC Form 13D/A filed April 18, 2002:

FMA believes that, despite the recent increase in the market price of the Common
Stock, Issuers management can, and should, do far more to realize the value
inherent in the Issuers franchise for all of its shareholders. Management
continues to operate the Issuer in a manner which raises doubts as to whether
the Issuer is run primarily for the benefit of the management shareholders
rather than in the interests of all of the Issuers shareholders. For example,
more than 2/3 of the Issuers reported total assets as of December 31, 2001 was
in the form of cash, cash equivalents or short-term investments. Management has
failed to articulate any coherent strategy behind its move over the past two
years to build up its cash and investments to such proportions or as to why such
an allocation of resources might be the best way to enhance the value for all of
its shareholders.

FMA has communicated its concerns over the years to the Issuer without avail.
Consequently, FMA has determined to sponsor the establishment of a forum open to
the management and all shareholders of the Issuer with a view to increasing the
level of communication among all of the Issuers constituencies and exploring
alternative measuers to enhance shareholder value. FMA has arranged for Gary
Lutin to conduct the forum. Mr. Lutin is an investment banker who has conducted
similar programs in connection with other publicly-held companies.

The Forum is open to all Farmer Bros. shareholders, whether institutional or individual, and to professionals concerned with their investment decisions.  Its purpose is to provide shareholders with access to information and a free exchange of views on issues relating to their evaluations of alternatives.  As stated in the Forum's Conditions of Participation, participants are expected to make independent use of information obtained through the Forum, subject to the privacy rights of other participants.  It is a Forum rule that participants will not be identified or quoted without their explicit permission.

There is no charge for participation.  Franklin Mutual Advisers, LLC, the manager of funds owning approximately 12.6% of Farmer Bros. shares, provided initial sponsorship for the Forum and arranged for it to be chaired by Gary Lutin.  Continuing support and guidance of the Forum is provided by an Advisory Panel of actively interested shareholders.

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