WINSTON-SALEM, N.C., April 15 /PRNewswire-FirstCall/ — Krispy Kreme Doughnuts, Inc. (NEW YORKSE: KKD) today announced an agreement to form one of its largest joint ventures to date, consolidating the company-owned Miami market with the currently franchised West Palm Beach market.

Jim Cosentino, President of Dynamic Doughnuts, Inc. – who is also the current Krispy Kreme franchisee for Buffalo, Rochester, Syracuse and Albany, New York,- will become the operating partner, acquiring a majority interest in the venture. Jimmy Buffett, Krispy Kreme’s franchisee in West Palm Beach, will merge with the South Florida Partnership. Krispy Kreme will retain approximately 35% of the new venture.

Dynamic Holding Company, which owns Dynamic Doughnuts, Inc. is also one of the most successful operators of TGI Friday’s and Denny’s restaurants. Currently they own nineteen TGI Friday’s and six Denny’s restaurants, as well as two Krispy Kreme factory stores in Buffalo and Rochester, New York, with two additional stores under construction in Buffalo, New York, and West Palm Beach, Florida. Both expected to open in the summer of 2002. In addition, Dynamic Doughnuts plans to open an 18,000 square foot commissary in Buffalo, New York, with construction scheduled to begin in May 2002.

Commenting on the agreement, Krispy Kreme Chairman, President and CEO Scott A. Livengood said, “With only one store presently in the Miami market, we know there is great opportunity to accelerate the development of this area. The partnership of Jimmy Buffett, Jim Cosentino and Krispy Kreme gives us great strength in this market as we develop the critical gateway to Latin America.”