Krispy Kreme Doughnuts, Inc. (Nasdaq: KREM) announced on Friday (5 Januray) that it has filed a registration statement with the Securities and Exchange Commission for the offer and sale of 2,000,000 shares of common stock. Of these shares, 1,850,000 shares will be sold by selling shareholders and 150,000 shares will be issued and sold by Krispy Kreme. In addition, Krispy Kreme and the selling shareholders will grant the underwriters an option to purchase an additional 300,000 shares to cover over-allotments. The Company will not receive any proceeds from the sale of shares by the selling shareholders.

Deutsche Banc Alex. Brown will act as book-running manager of the offering with J. P. Morgan Securities Inc. as co-lead manager and Dain Rauscher Wessels and BB&T Capital Markets as co-managers. When available, a preliminary prospectus may be obtained from: Deutsche Banc Alex. Brown, 1 South Street, Baltimore, MD 21202; J.P. Morgan Securities Inc., 60 Wall Street, New York, NY 10260; Dain Rauscher Wessels, (attention: Syndicate Department) 60 South Sixth Street, Minneapolis, MN 55402; and BB&T Capital Markets, 909 East Main Street, Richmond, VA 23218.

Krispy Kreme was founded in 1937 in Winston-Salem, North Carolina and is a leading branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. The Company operates 174 stores in 28 states.

Krispy Kreme can be found on the World Wide Web at www.krispykreme.com.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is 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 its dependence on franchisees to execute its store expansion strategy, supply issues, competition and numerous other factors discussed in the registration statement filed today with the Securities and Exchange Commission.