Krispy Kreme Awards Development Rights in the United Kingdom

Krispy Kreme Doughnuts, Inc. announced its second Franchise agreement outside of North America, awarding development rights for the United Kingdom. Krispy Kreme will partner with Chesire and Kent, Ltd. and Donald Henshall to form Krispy Kreme UK Limited, which will develop 25 stores over the next 5 years throughout the United Kingdom. Krispy Kreme Doughnuts, Inc. will retain a 34% euity interest in the new partnership.

Mr. Henshall, who most recently served as Krispy Kreme's president of international development and resides in London, will serve as managing director of Krispy Kreme UK. He will be responsible for building and rolling out Krispy Kreme stores and managing day-to-day operations. Prior to joining Krispy Kreme, Mr. Henshall served as managing director of new business and development with Overland Group, Ltd. in London, a maker of branded footwear and apparel. Prior to Overland, he was president and CEO of Diesel USA Inc., New York and managing director-UK and Ireland, Diesel (London) Ltd., a branded apparel retailer. Mr. Henshall developed, launched and executed the Diesel strategic business plan in the UK and the US. He began his career with Procter and Gamble, United Kingdom, where he held numerous management positions in sales and marketing.

Chesire and Kent Ltd. is jointly-owned by Haven Burke, Dick Clark and Edward J. Fishman. Mr. Burke started his entrepreneurial career working in the UK. Most recently serving as executive vice president of Coldwell Banker/Forest Olsen and Company, his career has covered all facets of business growth, expansion, sales, training, Franchising and management. Mr. Burke also developed and served as president of Java One, a Los Angeles-based coffee company.

Mr. Clark is one of the most recognized and popular personalities in entertainment. He is also one of the entertainment industry's most successful and well-regarded business executives, serving as chairman and CEO of Dick Clark Productions, Inc. "Dick Clark's American Bandstand Grill® 1991" is a group of themed family restaurants featuring regional cuisine at reasonable prices in an environment showcasing music memorabilia from Dick Clark's personal collection that spans five decades. The Company has also licensed the Restaurant concept to the HMSHost Corporation, who has opened airport locations in Indianapolis, Indiana; Salt Lake City, Utah; and Newark, New Jersey.

Edward J. Fishman is an international entrepreneur. His forty years of active involvement in the entertainment industry started at the early age of 16. One of Mr. Fishman's most industrious undertakings was the creation of the "Players Club", the largest gaming association club of its type in the world.

Scott Livengood, Krispy Kreme Chairman, President and Chief Executive Officer, said, "This is an extremely exciting partnership for Krispy Kreme as we continue our expansion into overseas markets. Don Henshall, who will serve as the managing director of Krispy Kreme UK, played an integral role as we planned to develop and expand Krispy Kreme into international markets. He has an exceptional background, along with a strong understanding of our business and our brand. With three strong partners in Haven Burke, Dick Clark and Edward Fishman, we are very excited about the growth of Krispy Kreme throughout the UK and about bringing the hot doughnut experience to new customers in this amazing part of the world."

Mr. Henshall echoed Livengood's sentiments, adding, "We are really looking forward to introducing Krispy Kreme to new customers in the UK and becoming an important part of the communities we serve. We are thrilled to be a part of the Krispy Kreme organization, particularly as it continues its journey into new countries throughout the world."

Separately, Livengood added, "This marks our second franchise partnership outside of North America. As we've indicated previously, we have identified a number of primary target markets which we believe have success characteristics similar to our newer markets in North America. These include, in addition to the UK, Australia and New Zealand, Japan, South Korea, Spain and Mexico."

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme is a leading branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. Krispy Kreme currently operates more than 250 stores in 37 states and Canada. An estimated 5 million Krispy Kreme doughnuts are made everyday and more than 2 billion are produced each year.