Krispy Kreme Finds Franchisee For Hong Kong, Macau

Krispy Kreme Doughnuts has awarded Hong Kong and Macau development rights to Krispy Kreme Hong Kong Ltd., which is operated by Hong Kong-based businessmen Wayne and Brian Parfitt, successful operators of restaurants in Hong Kong and Vietnam.

Krispy Kreme does not have an ownership position in Krispy Kreme Hong Kong.

Krispy Kreme's development agreement with Krispy Kreme Hong Kong calls for the development of approximately 20 locations over the next five years, with the first location scheduled to open in Hong Kong by fall 2006.

"This development agreement represents another step forward in the Company's turnaround," said Daryl Brewster, President and Chief Executive Officer of Krispy Kreme. "We are building on the growth that we are seeing in our other international markets and are pleased that we will be able to bring the great taste of Krispy Kreme to this important market."

"Hong Kong represents a significant step in our international expansion," said Jeff Welch, Krispy Kreme's Senior Vice President of Development&International Franchising. "The management team of Krispy Kreme Hong Kong has a solid track record in restaurant operations and a strong understanding of the Asian marketplace. We believe that they are distinctly qualified to introduce Krispy Kreme to Hong Kong and we anticipate a successful partnership."

"The Krispy Kreme experience is something we've been looking forward to bringing to Hong Kong for some time," said Wayne Parfitt, Managing Director of Krispy Kreme Hong Kong. "We have high expectations for our planned developments and are confident that Krispy Kreme products will be well- received by our customers."

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme is a branded retailer and wholesaler of high-quality doughnuts, including its signature Hot Original Glazed. There are currently approximately 310 Krispy Kreme stores and 85 satellites operating systemwide in 43 U.S. states, Australia, Canada, Mexico, South Korea and the United Kingdom.

Krispy Kreme Hong Kong is operated by Hong Kong-based businessmen Wayne and Brian Parfitt, who founded and operate restaurants under a number of brands in Hong Kong and Vietnam. These brands consist of Pepperonis Pizza, Jaspas Fusion Restaurants, Cru Restaurant, Alfrescos and Papa Joes Coffee.