Krispy Kreme Doughnuts, Inc. (Nasdaq: KREM) announced yesterday that Margaret Urquhart will step down as President of Krispy Kreme Stores North America and transition into a consulting role with the Company.

``We are grateful to Margaret for her contributions since joining Krispy Kreme. While I regret losing Margaret's presence day to day, I am pleased we will continue to have her on an as needed basis,'' commented Scott Livengood, the Company's Chairman, President and CEO.

``This has been an exhilarating year. Krispy Kreme is a wonderful company with a strong management team and a great product and brand. Its potential is unlimited. I look forward to assisting in its future success,'' stated Urquhart.

For the interim, Livengood will assume Urquhart's responsibilities.

The 63-year-old North Carolina-based company is a leading branded specialty retailer of premium quality doughnuts, including the company's signature Hot Original Glazed. Krispy Kreme currently operates 172 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 S-1 Registration Statement, declared effective on April 4, 2000, that is on file with the Securities and Exchange Commission.