SALT LAKE CITY, Aug 30, 2000 (BUSINESS WIRE) --  Kelly's Coffee Group Inc., a
Colorado corporation (OTCBB: KLYS), as a result of work completed in preparation
of its quarterly financial statement as of Aug. 31, 2000, has succeeded in
reducing the anticipated amount it will show as net liabilities of discontinued
operations by the amount of $474,701.28.
 
In addition, $228,014.53 in interest charges will also be removed from the books
of the company, for a total reduction of $702,715.81.
 
The full effect of these changes will be reflected in the quarterly financial
statements that will be filed by the company for its second quarter that ends on
Aug. 31, 2000 and subject to the review and acceptance of these results by the
company's auditor.
 
The majority of these debts were older operational claims that remained from the
period prior to 1996 and related solely to the operations of the company in the
state of Colorado. These figures represent a 44 percent decline in the amount of
liabilities from discontinued operations carried by the company and reflect
current success in an ongoing effort to resolve the remaining liabilities.
 
A number of statements contained in this press release are forward-looking
statements.
 
These forward-looking statements involve a number of risks and uncertainties,
including the timely development, and market acceptance, of products and
technologies, competitive market conditions, successful integration of
acquisitions, and the ability to secure additional sources of financing.
 
The actual results that Kelly's Coffee Group Inc. may achieve may differ
materially from any forward-looking statements due to such risks and
uncertainties. Management strongly recommends that you read this press release
in conjunction with its most recent Form 10-QSB and Form 10-KSB, as well as its
other public disclosure documents, which can be viewed at sec.gov.
 
 
 CONTACT:          Kelly's Coffee Group Inc., Salt Lake City
                   Richard D. Surber, 801/575-8073, ext. 106