Krispy Kreme Opens Second Factory Location in City of Orange; First 100 Customers In Line Receive Free Doughnuts For One Year

Business Wire, June 28, 2004

WHAT:    Krispy Kreme Doughnuts opens its newest location in the North
         Orange/Anaheim Hills area. In celebration of the opening, the
         first 100 customers waiting in line when the doors open at
         5:30 a.m. will receive free doughnuts for one year.

         The introduction of the North Orange location expands Krispy
         Kreme's presence in Southern California, bringing the total
         number of stores in the region to 27. Southern  California
         Krispy Kreme products are Kosher certified by Kosher
         Supervision of America (KSA). Temecula and San Marcos
         locations are scheduled to open in mid- to late July.

         In addition to giving away thousands of doughnuts, 10
         community groups will participate in opening day activities
         by digging (literally) for dozens of fundraising prizes for
         their organizations.

WHEN:    Tuesday, June 29
         5:30 a.m. -- Doors open (First 100 customers will receive
                      free doughnuts for a year)
         8:00 a.m. -- Ribbon cutting ceremony
         9:00 a.m. -- Student "Dig In" for fundraising prizes

WHERE:   Krispy Kreme Doughnuts
         2575 North Tustin Street (Just south of Lincoln Avenue)
         Orange, Calif.
         714-279-8144

VISUALS: -- Hundreds of fans lined up for FREE Krispy Kreme doughnuts
            at 5:30 a.m.
         -- Ribbon-cutting ceremony with influential community members
            and key executives
         -- 10 community organizations dig for fundraising prizes in
            large, Krispy Kreme sandbox

BACKGROUND:

         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 402 stores
         (composed of 373 factory stores and 29 satellites) in 44 U.S.
         states, Australia, Canada, Mexico and the United Kingdom.
         Krispy Kreme can be found on the World Wide Web at
         http://www.krispykreme.com.