Krispy Kreme Doughnuts (KKD) Begins Construction on New Dough Production & Distribution Facility

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The following is an advisory by Industrialinfo.com (Industrial Information Resources, Inc.; Houston, Texas) reported today that Krispy Kreme Doughnuts Inc (NYSE: KKD) (Winston-Salem, NC) is continuing growth plans through the addition of a new $14 million, 187,000 square foot dough production and distribution facility being constructed in Illinois.

To support new store openings across the US and Canada, a 34 acre site in Effingham, Il has been selected due to its proximity to highway and rail access. Once completed in June of 2002, the state-of-the-art facility will blend and package prepared doughnut mixes as well as provide distribution services. The Haskell Company (Jacksonville, Florida) was awarded the General Contract for the facility that began civil construction early July 2001.

Krispy Kreme recently completed an expansion of its main facility in Winston-Salem, NC and relocated their equipment division to a new and larger site that will provide mixing equipment for their stores. The company plans to open 36 new stores in 2001 and has an additional 36 stores slated to open in 2002.

Scott Livengood, Chairman, President and CEO of Krispy Kreme said, `Our continued sales momentum, penetration of new markets and accelerated pace of new store openings will outstrip our capacity to provide mix to our system by next year. This new plant will triple our capacity. The combination of this new mixing facility and new equipment manufacturing plant in Winston-Salem will provide the infrastructure to support our growth for the next several years.`

Founded in 1937, Krispy Kreme reported annual sales of over $300 million in 2000, and in May 2001 announced a 2-1 stock split following a successful IPO launch in April 2000. The company currently operates over 187 stores in 31 states across the US, employing over 3,200 people and producing over 1.3 billion doughnuts per year.