Teavana Holdings, Inc. Announces First Quarter Fiscal 2012 Financial Results

Atlanta, Georgia – May 30, 2012 – Teavana Holdings, Inc. (NYSE: TEA) today announced financial results for the first quarter fiscal 2012 period ended April 29, 2012.

Andrew Mack, Chairman and CEO, stated: “We are excited to have kicked-off the first quarter of 2012 with the announcement of our planned acquisition of Teaopia and the successful opening of 23 new stores. Our new stores continue to impress, performing at the top end of our new store sales model, further validating our goal of 500 U.S. stores by 2015. In the first quarter we were able to deliver a strong sales growth rate of 27% and a comparable sales increase of 1.7%. We look forward to the completion of the Teaopia acquisition in the second quarter, the continued execution on our planned 60 new stores this year, and the delivery of another year of strong earnings growth in fiscal 2012.”

The fiscal 2012 outlook remains unchanged. For fiscal 2012, excluding the impact of the planned Teaopia acquisition, net sales are expected to be in the range of $208 million to $215 million based on opening 60 new stores and an increase in comparable sales, including e-commerce, in the mid-single digit range. Excluding the impact of the planned Teaopia acquisition, adjusted net income is expected to increase in the range of 30% to 35%, to $23.0 million to $24.0 million, or $0.58 to $0.61 per diluted share based on 39.4 million shares compared to net income of $17.8 million, or $0.46 per diluted share based on 38.4 million shares in fiscal 2011.

For the second quarter of fiscal 2012, excluding the impact of the planned Teaopia acquisition, net sales are expected to be in the range of $38 million to $40 million based on opening 13 to 14 new stores and an increase in comparable sales, including e-commerce, in the low to mid-single digit range. Excluding the impact of the planned Teaopia acquisition, adjusted net income is expected to be in the range of $0.6 million to $1.0 million, or $0.02 to $0.03 per diluted share based on 39.4 million shares.

The Teaopia acquisition is expected to close in the second quarter of fiscal 2012. For fiscal 2012, the acquisition is expected to be neutral to earnings per share, excluding transaction and integration expenses expected to be in the range of $0.04 to $0.05 per diluted share. For the second quarter of fiscal 2012, the acquisition is expected to be dilutive to earnings per share by $0.02, excluding transaction and integration expenses expected to be $0.03 per diluted share. For fiscal 2013, the acquisition is expected to be accretive to earnings per share by $0.03 to $0.04.

A conference call to discuss the first quarter of fiscal 2012 financial results is scheduled for today, May 30, 2012, at 8:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial (888) 244-2414 (International (913) 312-0683) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at www.teavana.com in the investor relations section of the website.

A taped replay of the conference call will be available within two hours of the conclusion of the call and can be accessed both online and by dialing (877) 870-5176 for domestic callers and (858)-384-5517 for international callers. The pin number to access the telephone replay is 5340159. The replay will be available until June 6, 2012.

Teavana is a specialty retailer offering more than 100 varieties of premium loose-leaf teas, authentic artisanal teawares and other tea-related merchandise through 223 company-owned stores and on its website. Founded in 1997, the company offers new tea enthusiasts and tea connoisseurs alike its “Heaven of Tea” retail experience where passionate and knowledgeable “teaologists” engage and educate them about the ritual and enjoyment of tea. The company’s mission is to establish Teavana as the most recognized and respected brand in the tea industry by expanding the culture of tea across the world. To support the tea culture globally, Teavana donates approximately 1% of annual net profits to the Cooperative for Assistance and Relief Everywhere, Inc., or “CARE,” through its Teavana Equatrade program. For more information, visit www.teavana.com.

This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect management’s current views and estimates regarding our industry, business strategy, goals and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources and other financial and operating information. You can identify these statements by the fact that they use words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future” and similar terms and phrases. We cannot assure you that future developments affecting us will be those that we have anticipated. Actual results may differ materially from these expectations due to risks relating to our strategy and expansion plans, the availability of suitable new store locations, risks that consumer spending may decline and that U.S., Canadian and global macroeconomic conditions may worsen, risks related to our continued retention of our senior management and other key personnel, risks relating to changes in consumer preferences and economic conditions, risks relating to our distribution center, quality or health concerns about our teas and tea-related merchandise, events that may affect our vendors, increased competition from other tea and beverage retailers, risks relating to trade restrictions, risks associated with leasing substantial amounts of space, and other factors that are set forth in the Company’s filings with the Securities and Exchange Commission (“SEC”), including risk factors in our Annual Report on Form 10-K filed with the SEC and available at www.sec.gov and in all filings with the SEC made by us subsequent to the filing of the Form 10-K. Other factors that could change expected outcomes include our ability to close the Teaopia transaction and integrate its operations as planned and the continued performance of its locations as planned. If one or more of these risks or uncertainties materialize, or if any of our assumptions prove incorrect, our actual results may vary in material respects from those projected in these forward-looking statements. Any forward-looking statement made by us in this news release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking

statement, whether as a result of new information, future developments or otherwise, except as may be

The accompanying press release contains certain non-GAAP financial measures. The following tables reconcile the non-GAAP financial measures in this press release to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles in the United States (“US GAAP”). These non-GAAP financial measures include non-GAAP adjusted income from operations, adjusted net income and adjusted diluted earnings per share for the thirteen weeks ended April 29, 2012 and for the outlook provided for fiscal 2012 and the second quarter of fiscal 2012.

The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding the ongoing operation of the business and allow management, lenders, investors and analysts to evaluate and assess the core operating results after removing the impact of Teaopia acquisition and integration related costs that affect comparability.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with US GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from US GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

The following tables present a reconciliation of adjusted income from operations, adjusted net income, and adjusted diluted earnings per share for the thirteen weeks ended April 29, 2012 and projected adjusted net income and adjusted diluted earnings per share for fiscal 2012 and the second quarter of fiscal 2012:

Historical

Reconciliation of US GAAP Income from Operations and Net Income to non-US GAAP ("adjusted") Income from Operations and Net Income

Investor Contact: ICR, Inc.

Farah Soi / Joseph Teklits 203-682-8200 Farah.soi@icrinc.com