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Krispy Kreme Franchisee in Hong Kong to Enter Receivership

October 27, 2008

WINSTON-SALEM, N.C., Oct. 27 /PRNewswire-FirstCall/ — Krispy Kreme Doughnuts, Inc. announced today that its Hong Kong franchisee has informed the Company that it plans to enter into receivership. The franchisee has been in operation in Hong Kong for approximately two years and operates nine Krispy Kreme locations.

Although the Company is disappointed by this development the Company’s international growth strategy has not changed. Recently, Krispy Kreme has signed franchise development agreements for the Republic of Turkey and Malaysia, as well as for the metropolitan areas of Shanghai, Beijing and Tianjin, China.

About Krispy Kreme

Krispy Kreme is a leading branded specialty retailer of premium quality sweet treats, including its signature hot Original Glazed(R) doughnut. Headquartered in Winston-Salem, NC, the company has offered the highest quality doughnuts and great tasting coffee since it was founded in 1937. Krispy Kreme is proud that for decades its Fundraising program has helped non-profit organizations raise millions of dollars in needed funds. Today, Krispy Kreme and its one-of-a-kind Hot Light can be found in approximately 500 locations around the world. Visit us at http://www.krispykreme.com/ .

Information contained in this press release, other than historical information, should be considered forward-looking. Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Krispy Kreme’s operating results, performance or financial condition are the outcome of pending governmental investigations, including by the Securities and Exchange Commission (the “SEC”) and the United States Attorney’s Office for the Southern District of New York; potential indemnification obligations and limitations of our director and officer liability insurance; the quality of Company and franchise store operations; our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans; our relationships with our franchisees; our ability to implement our international growth strategy; our ability to implement our new domestic operating model and refranchising strategy; currency, economic, political and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients; compliance with government regulations relating to food products and franchising; our relationships with wholesale customers; our ability to protect our trademarks; risks associated with our high levels of indebtedness; restrictions on our operations and compliance with covenants contained in our secured credit facilities; changes in customer preferences and perceptions; significant changes in our management; risks associated with competition; and other factors discussed in Krispy Kreme’s Annual Report on Form 10-K for fiscal 2008 and other periodic reports filed with the SEC.

Krispy Kreme Doughnuts, Inc.

CONTACT: Brian K. Little of Krispy Kreme Doughnuts, Inc.,+1-336-726-8825, blittle@KrispyKreme.com

Web site: http://www.krispykreme.com/




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