Krispy Kreme Acquires Savannah, Georgia Market

Apr 24, 2001, 01:00 ET from Krispy Kreme Doughnuts, Inc.

    WINSTON-SALEM, N.C., April 24 /PRNewswire Interactive News Release/ --
     Krispy Kreme Doughnuts, Inc. (Nasdaq:    KREM) announced today the
 acquisition of the Savannah, Georgia market.  The company will purchase the
 rights to this market from an associate franchisee who currently operates two
 factory stores in that market.  The company did not disclose the purchase
 price but did indicate it expects the acquisition to be modestly accretive to
 earnings in the current fiscal year.
     Scott Livengood, the Company's Chairman, CEO and President said, "We are
 very excited about this acquisition.  We have discussed the possibility of
 franchise acquisitions since we went public.  Savannah marks the first step in
 a series of franchise repurchases.  We will evaluate this market for both
 retention as a company-owned operation and for refranchising to an area
 developer partner.  For now we will keep our options open, but would expect
 under any scenario to retain at least a majority share of this market."
     Livengood also added, "This market is a significant part of our heritage.
 Krispy Kreme has been making magic moments for customers in Savannah for over
 30 years.  We look forward to an even closer relationship with both our
 customers and the Krispy Kreme employees of Savannah."
     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 180 stores in
 29 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.
 
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SOURCE Krispy Kreme Doughnuts, Inc.
    WINSTON-SALEM, N.C., April 24 /PRNewswire Interactive News Release/ --
     Krispy Kreme Doughnuts, Inc. (Nasdaq:    KREM) announced today the
 acquisition of the Savannah, Georgia market.  The company will purchase the
 rights to this market from an associate franchisee who currently operates two
 factory stores in that market.  The company did not disclose the purchase
 price but did indicate it expects the acquisition to be modestly accretive to
 earnings in the current fiscal year.
     Scott Livengood, the Company's Chairman, CEO and President said, "We are
 very excited about this acquisition.  We have discussed the possibility of
 franchise acquisitions since we went public.  Savannah marks the first step in
 a series of franchise repurchases.  We will evaluate this market for both
 retention as a company-owned operation and for refranchising to an area
 developer partner.  For now we will keep our options open, but would expect
 under any scenario to retain at least a majority share of this market."
     Livengood also added, "This market is a significant part of our heritage.
 Krispy Kreme has been making magic moments for customers in Savannah for over
 30 years.  We look forward to an even closer relationship with both our
 customers and the Krispy Kreme employees of Savannah."
     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 180 stores in
 29 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.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X26104786
 
 SOURCE  Krispy Kreme Doughnuts, Inc.