Financial Media                  Robbin Moore
     and Investor Contact:            Director, Investor Relations
                                      Krispy Kreme Doughnuts, Inc.
                                      336-726-8857

     Media Contact:                   Amy Hughes
                                      Communications Director
                                      Krispy Kreme Doughnuts, Inc.
                                      336-726-8815



                        KRISPY KREME ANNOUNCES EXTENSION
                                OF LENDER CONSENT

WINSTON-SALEM, N.C., March 24, 2005--Krispy Kreme Doughnuts, Inc. (NYSE:KKD)
(the "Company") announced today that the lenders under its Credit Facility have
agreed to extend until April 11, 2005 the date on which an event of default
would occur by reason of its failure to deliver financial statements for the
quarter ended October 31, 2004. The Company is currently negotiating with a new
lending group to obtain new credit facilities the proceeds of which would be
used to repay in full the lenders under its current Credit Facility and for
general corporate purposes. There can be no assurance that such new credit
facilities can be obtained.

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
www.krispykreme.com.

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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.







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