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1933 Vernon Carver Rudolph, the founder of Krispy Kreme, bought a

doughnut shop in Paducah, Kentucky from a French chef from New Orleans. He received the company’s assets, goodwill, and the rights to a secret yeast-raised doughnut recipe.

Mid 1930s It wasn’t long before Rudolph and his partner decided to look

for a larger market. They moved their operations to Nashville, Tennessee, where other members of the Rudolph family joined the business and opened shops in Charleston, West Virginia and Atlanta, Georgia. At this time, the business focused on selling doughnuts to local grocery stores.

July 13, 1937 During the early summer of 1937, Rudolph decided to leave

Nashville to open his own doughnut shop. He and two other young men set off in a 1936 Pontiac and arrived in Winston-Salem with $25 in cash, a few pieces of doughnut-making equipment, the secret recipe, and the name Krispy Kreme Doughnuts. They used their last $25 to rent a building across from Salem Academy and College in what is now called historic Old Salem. With no money left to buy ingredients, Rudolph convinced a nearby grocer to lend him ingredients in return for payment once the first doughnuts were sold.

Next, Rudolph needed a way to deliver the doughnuts. So he took the back seat out of the Pontiac and installed a delivery rack. On July 13, 1937, the first Krispy Kreme doughnuts were made at the new Winston-Salem shop. Soon afterward, people began stopping by to ask if they could buy hot doughnuts right there on the spot. The demand was so great that Rudolph opened the shop for retail business by cutting a hole in the wall and selling doughnuts directly to customers, marking the beginning of Krispy Kreme’s retail services.

1950s Steps were taken throughout the ‘50s to mechanize the

doughnut-making process. Hand-cut doughnuts became a thing of the past with the new Krispy Kreme automatic doughnut cutter. Proofing, cooking, glazing, and screen loading had become entirely automatic. This was the first version of Krispy Kreme’s continuous yeast doughnut-making equipment and is the foundation of the doughnut-making process used by Krispy Kreme stores today.

1962 The automatic doughnut cutter, which had revolutionized

production, was replaced by a new innovation. Instead of doughnuts being cut, they were extruded by air pressure from the dough hopper to the trays of the continuous proof box. This process is still used in Krispy Kreme stores today.

August 16, 1973 Vernon Carver Rudolph died. May 28, 1976 Krispy Kreme Doughnut Corporation became a wholly-

owned subsidiary of Beatrice Foods Company of Chicago, Illinois. The headquarters for Krispy Kreme remained in Winston-Salem, North Carolina.

February 28, 1982 A group of Krispy Kreme franchisees, led by Joseph A.

McAleer Sr., purchased Krispy Kreme Doughnut Corporation from Beatrice Foods Company. Krispy Kreme became an independent company once again

June 26, 1996 The first Krispy Kreme store in New York City opened at

265 West 23rd Street. July 17, 1997 Krispy Kreme’s place in American society was

recognized by the contribution of Krispy Kreme artifacts to the Smithsonian Institution’s National Museum of American History in Washington, D.C.

January 26, 1999 The first west coast store opened in the Los Angeles,

California area at 1801 West Imperial Highway in La Habra, California.

April 5, 2000 Krispy Kreme Doughnuts, Inc. held an initial public

offering of common stock on the NASDAQ under the stock symbol KREM.

February 21, 2001 Krispy Kreme acquired Digital Java, Inc., a small

Chicago-based coffee company. With this acquisition Krispy Kreme improved and broadened the beverage offering available to customers.

May 17, 2001 Krispy Kreme’s common stock transferred to the New

York Stock Exchange (NYSE) under the new ticker symbol KKD.

December 11, 2001 Krispy Kreme opened its first store outside the United

States, in Mississauga, Ontario, Canada, which is just outside Toronto.

October 2002 Krispy Kreme introduced four new signature coffees to its

stores — including Smooth, Rich, Bold and Robust Decaf — all made from high-quality coffee beans and roasted by Krispy Kreme’s own Roastmaster to exact specifications.

June 19, 2003 Krispy Kreme opened its first store outside of North America in Penrith, New South Wales, Australia, a suburb of Sydney.

October 3, 2003 Krispy Kreme opened its first store in United Kingdom in Harrods

of Knightsbridge, London, England.

Today, Krispy Kreme produces approximately 7.5 million doughnuts a day and more than 2.7 billion doughnuts a year. Krispy Kreme has grown to serve customers through more than 360 U.S. stores in 45 states, the District of Columbia and Australia, Canada, Mexico, and the U.K. including: • Alabama • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Louisiana • Maryland

• Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania

• Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Virginia • Washington DC • Washington • West Virginia • Wisconsin • Wyoming INTERNATIONAL: • Mexico • Australia • Canda • England

Krispy Kreme doughnuts and snacks also are sold at thousands of supermarkets, convenience stores, and other retail outlets across the United States.

• Vernon Rudolph founded Krispy Kreme in Winston-Salem, North Carolina, and produced the first Krispy Kreme doughnuts on July 13, 1937. The first Krispy Kreme store was located on South Main Street in Winston-Salem in what is now called historic Old Salem.

• Krispy Kreme’s most famous and best-selling product is the hot, glazed, yeast-raised doughnut known as the “Krispy Kreme Original Glazed.”

• Krispy Kreme has more than 360 retail locations in 44 states as well as Australia, Canada, Mexico, the United Kingdom, and is expanding into major metropolitan areas of the United States, Canada, Mexico, Australia, New Zealand, and the United Kingdom.

• Krispy Kreme’s general offices, mix department, laboratories, distribution center, and equipment department are in Winston-Salem, North Carolina. Krispy Kreme opened a second mix plant and distribution facility in Effingham, Illinois in Spring 2002 and has an additional distribution center in Fontana, California.

• In addition to delivering fresh doughnuts daily, Krispy Kreme also sells snack foods, real fruit pies, cinnamon buns and mini-doughnuts to wholesale outlets, such as convenience stores and supermarkets.

• Krispy Kreme Doughnuts, Inc. completed an initial public offering of common stock on April 5, 2000 on the NASDAQ under the stock symbol KREM. 13,800,000 shares were offered in the initial public offering at a price of $5.25 a share.*

• In February 2001, Krispy Kreme Doughnuts, Inc. completed a follow-on public offering of 10,400,000 shares of common stock at a price of $16.75 per share.* Of the 10,400,000 shares, 9,313,300 were sold by selling shareholders and 1,086,700 were sold by Krispy Kreme.

• Krispy Kreme Doughnuts, Inc.’s common stock transferred to the New York Stock Exchange (NYSE) on May 17, 2001 under the new ticker symbol KKD.

• Results for the past three fiscal years were**:

(in thousands) 2002*** 2003 2004 Total Revenue** $394,354 $ 491,549 $ 665,592_____ Net Income $ 26,378 $ 33,478 $ 57,087_____ # Stores Systemwide 221 276 357

* Adjusted to reflect a two-for-one stock split paid in the form of a stock dividend effective March 19, 2001 to shareholders of record as of March 5, 2001 and a two-for-one stock split paid in the form of a stock dividend effective June 14, 2001 to shareholders of record as of May 29, 2001.

** Total revenues include sales from company stores, franchise operations and Krispy

Kreme Manufacturing and Distribution. *** The results for fiscal year 2002 reflect 53 weeks, an event

that occurs every fifth year. The results for 2001 and 2003 reflect 52 weeks.

UNITED STATES Alabama Birmingham (2) Dothan Florence Hoover Huntsville Mobile (3) Montgomery Tuscaloosa Arizona Avondale Peoria Phoenix (2) Scottsdale Tempe Tucson (2) Arkansas Bentonville Little Rock California Bakersfield Burbank Cerritos Concord Citrus Heights City of Industry CanogaPark Daly City El Cajon Elk Grove Fresno Gardena Huntington Park La Habra Long Beach Los Angeles Mission Viejo Modesto Monterey Park Mountain View Oakland Ontario Orange Oxnard Palmdale Pico Rivera Pinole Pittsburg Riverside Sacramento San Diego San Francisco Santa Rosa Stockton Torrance Union City Van Nuys

Colorado Aurora Colorado Springs Grand Junction Littleton Lone Tree Thornton Connecticut Milford Newington Delaware Wilmington Florida Boca Raton Boynton Beach Brandon Clearwater Daytona Beach Destin Ft. Lauderdale Gainesville Jacksonville (2) Kissimmee Melbourne Miami Orange Park Orlando Ormond Beach Panama City Pensacola Tallahassee (3) Tamarack Tampa (3) West Palm Beach Winter Park Georgia Albany Athens Atlanta (3) Augusta (2) Bogart Columbus Duluth Lilburn Macon (2) Marietta Martinez Riverdale Roswell Savannah (2) Hawaii Kahului, Maui Idaho Meridian

Illinois Bolingbrook Chicago (2) Elk Grove Village Fairview Heights Glendale Heights Gurnee Hanover Park Midlothian Mundelein Naperville Rosemont St. Charles Summit Woodridge Indiana Evansville Fort Wayne (2) Indianapolis (2) Lafayette Mishawaka Schererville Iowa Cedar Rapids Clive Davenport Kansas Hutchinson Merriam Overland Park Wichita Kentucky Florence Lexington Louisville (2) Louisiana Baton Rouge (2) Lafayette Marrero Metairie New Orleans Maryland Baltimore Columbia Glen Burnie Owings Mills Rockville Timonium Massachusetts Boston Dedham Medford

Michigan Allen Park Dearborn Heights Flint Grand Rapids Lansing Livonia Roseville Troy Minnesota Apple Valley Coon Rapids Eden Prairie Maple Grove Bloomington (Mall of America) St. Paul Waite Park Mississippi Gulfport Hattiesburg Ridgeland Missouri Fenton Independence O’Fallon Springfield (2) St. Louis (2) Nebraska Bellevue Omaha Nevada Las Vegas (4)) N. Las Vegas Reno New Jersey Brick Northfield New Mexico Albuquerque (2) 6/29/04

New York Cheektowaga East Meadow Henrietta Hicksville Latham Melville New York City (4) Riverhead Rochester Syracuse Tonawanda North Carolina Asheville Charlotte (2) Fayetteville Gastonia Goldsboro Greensboro (3) Greenville Hendersonville Hickory High Point Matthews Mt. Airy Raleigh Rocky Mount Salisbury Wilmington Winston-Salem North Dakota Fargo Ohio Akron (2) Boardman Columbus Kettering Middleburg Heights Toledo Oklahoma Oklahoma City (2) Norman Tulsa Oregon Beaverton Portland

Pennsylvania Altoona Bridgeville Cranberry Township Erie Greensburg Langhorne Monroeville Montgomeryville Philadelphia Pittsburgh (2) Robinson Township Scranton (2) Springfield Washington Rhode Island Cranston South Carolina Cayce Charleston (2) Florence (2) Greenville Myrtle Beach (2) N. Myrtle Beach Spartanburg South Dakota Sioux Falls Tennessee Chattanooga Kingsport Knoxville (2) Madison Memphis (3) Nashville (2) Pigeon Forge Sevierville Texas Arlington Amarillo Austin (2) Beaumont Corpus Christi Dallas El Paso Frisco Ft. Worth Grapevine Houston (6) Irving Laredo Lubbock Missouri City Round Rock San Antonio (3) Waco Webster

Utah Layton Orem Sandy Virginia Alexandria Bristol Hampton Richmond Roanoke Virginia Beach Washington Burlington Issaquah Puyallup Seattle (2) Spokane Tacoma Vancouver West Virginia S. Charleston Wisconsin Brookfield Onalaska West Allis AUSTRALIA Penrith, NSW Liverpool, NSW CANADA Calgary, Alberta Kitchener, Ontario London, Ontario Mississauga, Ontario North York, Ontario Oakville, Ontario Richmond Hill, Ontario Scarborough, Ontario Toronto, Ontario Windsor, Ontario Dollard-des-Ormeaux, Greenfield Park, PQ Laval, PQ Montreal, PQ Quebec City, PQ Delta, B.C. UNITED KINGDOM Enfield, England London, England MEXICO Mexico City, Mexico

• Krispy Kreme stores across North America produce more than 7.5 million doughnuts per day and make more than 2.7 billion doughnuts per year.

• Krispy Kreme produces enough doughnuts in about a week to make a line of doughnuts from New York City to Los Angeles. Now that’s glazing the trail.

• A typical Krispy Kreme store produces more than 3,000 doughnuts per hour, but larger stores can produce up to 12,000 doughnuts per hour.

• In about 22 seconds, Krispy Kreme stores can produce enough doughnuts to make a stack the height of the Empire State Building.

• Krispy Kreme uses enough chocolate each year to fill nearly five Olympic-sized swimming pools and 1.3 million pounds of sprinkles, enough to fill 33 18-wheeler trucks.

• The latest craze for doughnuts? Serving Krispy Kreme doughnuts at weddings. After a story ran in InStyle magazine’s special “Weddings” issue (Spring 2002), couples began calling Krispy Kreme stores to place doughnut orders for wedding receptions.

• Krispy Kreme roasts and blends approximately 1.5 million pounds of coffee a year——three times the weight of the Statue of Liberty.

• Doughnuts trace their history to Dutch “fried cakes,” which were brought to America by early Dutch settlers. The cakes had nuts embedded in their centers, and early Americans combined “dough” and “nut” to make the word “doughnut.”

• During the next year, Krispy Kreme will serve more than 54 million cups of coffee——that’s 3.4 million gallons, if you’re counting——of hot, fresh coffee in its more than 380 stores across the United States, Canada, Mexico, Australia and the United Kingdom.

• The hole in the center of the doughnut is credited to a young boy named Hanson Gregory, who, in 1847, suggested to his mother that she put a hole in the middle of her “fried cakes” to ensure the cake was fully cooked in the middle.

• Krispy Kreme doughnuts are formed from dough extruded by air pressure to form a perfect doughnut shape. The doughnut “hole” actually doesn’t exist at Krispy Kreme.

June 2004