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Krispy Kreme Announces Departure of Six Officers

WINSTON-SALEM, N.C., June 21, 2005 /PRNewswire-FirstCall via COMTEX/ -- On June 15, 2005, the Special Committee of independent directors of Krispy Kreme Doughnuts, Inc. informed the Company's senior management that the Special Committee had concluded that six of the Company's officers should be discharged. These six officers include four senior vice presidents and were in the areas of operations, finance, business development, and manufacturing and distribution. Five of these individuals have resigned, and one has retired. The Company intends, for the time being, to fill these positions with existing personnel.

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The Special Committee is continuing its investigation. The Company is continuing to cooperate fully with the U.S. Attorney's Office for the Southern District of New York and the Securities and Exchange Commission in their respective investigations.

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 approximately 400 stores in 45 U.S. states, Australia, Canada, Mexico, the Republic of South Korea and the United Kingdom. Krispy Kreme can be found on the World Wide Web at .

Information contained in this press release, other than historical information, should be considered forward-looking. Forward-looking statements are 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 the outcome of the pending formal investigation by the United States Securities and Exchange Commission and the investigation by the United States Attorney's Office for the Southern District of New York, the pending shareholder class action, the pending shareholder derivative actions, the pending ERISA class action, the pending Special Committee investigation, our auditors' ongoing review of our financial statements, actions taken by lenders to the Company and its joint ventures, its dependence on franchisees to execute its store expansion strategy, supply issues, changes in consumer preferences and perceptions, the failure of new products or cost saving initiatives to contribute to financial results in the timeframe or amount currently estimated and numerous other factors discussed in Krispy Kreme's periodic reports and proxy statements filed with the Securities and Exchange Commission.

SOURCE Krispy Kreme Doughnuts, Inc.

Financial Media and Investor Contact, Robbin Moore, Investor Relations Director of
Krispy Kreme Doughnuts, Inc., +1-336-726-8857; or Media Contact, Brooke Smith of
LaForce-Stevens, +1-212-242-9353