Exhibit 99.1



     Financial Media and              Robbin Moore
     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 $225 MILLION FINANCING


WINSTON-SALEM, N.C., April 4, 2005--Krispy Kreme Doughnuts, Inc. (NYSE:KKD) (the
"Company") announced today its subsidiary, Krispy Kreme Doughnut Corporation,
closed senior secured credit facilities aggregating $225 million, comprised of a
$75 million first lien senior secured revolving credit facility, a $120 million
second lien senior secured term loan and a $30 million second lien prefunded
revolving credit and letter of credit facility. The facilities were arranged by
Credit Suisse First Boston as sole bookrunner, sole lead arranger and
administrative agent, and Silver Point Finance, LLC, acting as co-arranger.
Wells Fargo Foothill, Inc. is acting as syndication and collateral agent under
the first lien facility.

Proceeds of the term loan were used to repay the approximately $90 million
outstanding under Krispy Kreme Doughnut Corporation's existing credit facility,
pay fees and expenses related to the financing, and provide cash on the balance
sheet. The first lien facility and the second lien revolving credit and letter
of credit will be available to Krispy Kreme for general corporate purposes.

"This is an important, positive step for Krispy Kreme," said Steve Panagos,
President and Chief Operating Officer of Krispy Kreme Doughnuts, Inc. and
Managing Director of Kroll Zolfo Cooper, LLC. "We are pleased to have found
partners like CSFB and Silver Point who understand and believe in the power and
potential of Krispy Kreme. With more liquidity and no near-term repayment
deadlines, we look forward to getting back to the business of selling doughnuts
and coffee."

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The new credit facilities will be filed as exhibits to Form 8-K, which will be
made available on the Company's website promptly after its filing with the
Securities and Exchange Commission.

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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