Krispy Kreme Continues Expansion With Two New Markets

Apr 20, 2001, 01:00 ET from Krispy Kreme Doughnuts, Inc.

    WINSTON-SALEM, N.C., April 20 /PRNewswire Interactive News Release/ --
 Krispy Kreme Doughnuts, Inc. (Nasdaq:   KREM) announced today that it has
 awarded the development rights for two new markets -- Fargo, North Dakota and
 Sioux Falls, South Dakota.  Rion LLC, the current area developer for Omaha,
 Cedar Rapids, Lincoln and Des Moines, plans to build one store in each of
 these two new markets.  Most recently, the company has focused on markets with
 more than 100,000 households.  Now that nearly all of these larger markets are
 under development, the company can begin to focus on the development of a
 strategy to address the largely untapped potential of smaller markets.
     Scott Livengood, Chairman, CEO and President, commented, "Rion is one of
 our most successful and established area developers.  We are very pleased with
 their intention to aggressively develop these two new markets.  We are
 delighted to bring Krispy Kreme to Fargo and Sioux Falls."
     Mr. Livengood added, "Prior to this, we have not actively pursued
 development in new markets with substantially less than 100,000 households.
 The experience gained in these markets will provide important direction as we
 begin to focus on our small market strategy."
     Separately, the company also announced the results of its latest new
 market opening in Lone Tree, Colorado, a suburb of Denver.  First week sales
 exceeded $369,000, setting a new record.  Mr. Livengood said, "We are
 gratified with the overwhelming turnout of both new customers and old friends
 in Denver.  Our partner in Denver, Glazed Investments, LLC, has done a superb
 job of introducing Krispy Kreme to Colorado.  After this warm welcome to the
 Denver market, we look forward to deepening our commitment to this market with
 additional stores."  The company also indicated it is participating in a small
 test in the Tallahassee, Florida market with Publix supermarkets.  A program
 offering both Krispy Kreme in-store bakery and pre-packaged doughnuts will be
 tested in 9 Publix stores in this market.  Results of the test will be
 evaluated later this summer.
 
     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 20 /PRNewswire Interactive News Release/ --
 Krispy Kreme Doughnuts, Inc. (Nasdaq:   KREM) announced today that it has
 awarded the development rights for two new markets -- Fargo, North Dakota and
 Sioux Falls, South Dakota.  Rion LLC, the current area developer for Omaha,
 Cedar Rapids, Lincoln and Des Moines, plans to build one store in each of
 these two new markets.  Most recently, the company has focused on markets with
 more than 100,000 households.  Now that nearly all of these larger markets are
 under development, the company can begin to focus on the development of a
 strategy to address the largely untapped potential of smaller markets.
     Scott Livengood, Chairman, CEO and President, commented, "Rion is one of
 our most successful and established area developers.  We are very pleased with
 their intention to aggressively develop these two new markets.  We are
 delighted to bring Krispy Kreme to Fargo and Sioux Falls."
     Mr. Livengood added, "Prior to this, we have not actively pursued
 development in new markets with substantially less than 100,000 households.
 The experience gained in these markets will provide important direction as we
 begin to focus on our small market strategy."
     Separately, the company also announced the results of its latest new
 market opening in Lone Tree, Colorado, a suburb of Denver.  First week sales
 exceeded $369,000, setting a new record.  Mr. Livengood said, "We are
 gratified with the overwhelming turnout of both new customers and old friends
 in Denver.  Our partner in Denver, Glazed Investments, LLC, has done a superb
 job of introducing Krispy Kreme to Colorado.  After this warm welcome to the
 Denver market, we look forward to deepening our commitment to this market with
 additional stores."  The company also indicated it is participating in a small
 test in the Tallahassee, Florida market with Publix supermarkets.  A program
 offering both Krispy Kreme in-store bakery and pre-packaged doughnuts will be
 tested in 9 Publix stores in this market.  Results of the test will be
 evaluated later this summer.
 
     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/11690X96443421
 
 SOURCE  Krispy Kreme Doughnuts, Inc.