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Re: Archangel post# 6331

Thursday, 09/27/2001 7:33:15 PM

Thursday, September 27, 2001 7:33:15 PM

Post# of 222611
Dood, I wonder if I can get one of these installed in my house?

Krispy Kreme Announces Development of New Hot Doughnut Technology

http://biz.yahoo.com/prnews/010927/chth020_1.html

WINSTON-SALEM, N.C., Sept. 27 /PRNewswire/ -- Krispy Kreme Doughnuts, Inc. (NYSE: KKD - news) today announced the development of a new proprietary doughnut technology which has the potential to substantially increase the number of stores featuring its signature ``hot doughnut now'' experience. The Company is calling this technology the ``Krispy Kreme Hot Doughnut Machine.'' The new machine, a conveyor oven and glazing system, closely resembles Krispy Kreme's current doughnut production equipment, which the Company also manufactures. The Hot Doughnut Machine, however, is designed to finish cooking and glazing doughnuts that have been prepared to a certain point at a factory store and delivered fresh to a store employing this technology. The result is a hot doughnut virtually identical to that experienced in Krispy Kreme's traditional factory stores. Since this system is only finishing the doughnut making process, it requires much less space, direct labor and investment than the full production process.

An additional benefit of the new system is the ability to offer multiple varieties of hot doughnuts throughout the day. ``Hot doughnuts are the essence of the Krispy Kreme brand and our company is committed to strategically pursuing opportunities to extend the hot doughnut experience to our customers. This new technology accomplishes that through a patented process integrating the key variables of time, temperature and humidity. It is the result of two years of intensive research and development efforts within Krispy Kreme and reflects our commitment to improve the customer experience through innovation,'' said Krispy Kreme's Chairman, President and Chief Executive Officer, Scott Livengood.

Krispy Kreme is announcing the development of the Hot Doughnut Machine at this time because they are preparing to open stores to test the concept. Test stores utilizing the new equipment will allow Krispy Kreme to further understand and refine the technology. ``If the tests are successful, we have the potential to substantially increase the number of Krispy Kreme stores and hot doughnut experiences available to our customers,'' commented Livengood. ``Stores that utilize the Hot Doughnut Machine technology will complement, not replace our traditional factory stores. This technology provides us with the versatility we need to enter market areas which before were not practical, including certain urban locations, smaller markets, and confined locations such as airports and malls. We also will be able to take advantage of existing stores' production capacity, creating efficiencies and greater profitability. In fact, the factory store leverage which this technology could generate might actually cost-justify additional factory stores beyond the 750 we have previously estimated in the United States.''

The 64 year old North Carolina-based company is a leading branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. Krispy Kreme currently operates 194 stores in 31 states.

Krispy Kreme can be found on the World Wide Web at www.krispykreme.com.

Information contained in this press release, other than historical information, may be considered forward- looking in nature and is 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 its dependence on franchisees to execute its store expansion strategy, supply issues, competition and numerous other factors discussed in Krispy Kreme's periodic reports, proxy statement and other information statements filed with the Securities and Exchange Commission.

SOURCE: Krispy Kreme Doughnuts, Inc.



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