Krispy Kreme Doughnuts, Inc. (Nasdaq: KREM) announced today the public offering of 2,300,000 shares of common stock at a price of $67.00 per share. Of these shares, 2,100,000 shares are being sold by selling shareholders and 200,000 shares are being issued and sold by Krispy Kreme. In addition, Krispy Kreme and the selling shareholders have granted the underwriters an option to purchase an additional 300,000 shares to cover over-allotments.

Deutsche Banc Alex. Brown is acting 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. A 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 .

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 Krispy Kreme's periodic reports, proxy statement and other information statements filed with the Securities and Exchange Commission.