HARTFORD, Conn., Feb. 22 2005 – LAWFUEL – The Law News Network– Sheph…

HARTFORD, Conn., Feb. 22 2005 – LAWFUEL – The Law News Network– Shepherd, Finkelman, Miller & Shah, LLC (http://www.classactioncounsel.com; e-mail:
[email protected]), a law firm with offices in Connecticut,
Pennsylvania, New Jersey and Florida, announces that a lawsuit seeking class
action status has been filed in the United States District Court for the
Middle District of North Carolina on behalf of all persons (the “Class”) who
purchased the securities of Krispy Kreme Doughnuts, Inc. (Nasdaq: KKD)
(“Krispy Kreme” or the “Company”) during the period May 7, 2004 and January 4,
2005, inclusive (the “Class Period”). A copy of the Complaint may be obtained
from the Court, or you can call our offices toll free at either 866/540-5505
or 877/891-9880 to speak with an attorney regarding this matter and we will
send you a copy of the Complaint.

The Complaint charges Krispy Kreme, Scott Livengood (Chairman, President
and Chief Executive Officer) and Michael Phalen (Chief Financial Officer) with
violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934
and Rule 10b-5 promulgated thereunder. More specifically, the Complaint
alleges that, during the Class Period, Krispy Kreme misrepresented its
financial condition to the investing public. The Complaint further charges
that the Company improperly accounted for its reacquisition of certain of its
franchisees, thereby artificially inflating its pre-tax income for fiscal year
2004 by as much as $8.1 million.

In a press release dated January 4, 2005, the last day of the Class
Period, the Company conceded that it would have to make $8.1 million in write-
downs. The day prior to the release, the Company stock traded at an intra-day
high of almost $13 per share. On the day after the release, KKD stock traded
at an intra-day low of $9.36 per share, down a full 28% from its intra-day
high just two days earlier.

If you purchased Krispy Kreme securities between May 7, 2004 and January
4, 2005 (inclusive), you may qualify to serve as lead plaintiff on behalf of
the Class. All motions for appointment as lead plaintiff must be filed with
the Court no later than March 19, 2005. Any member of the proposed Class may
move the Court to serve as lead plaintiff in this action through counsel of
his or her choice, or may remain an absent class member. There are certain
legal requirements to serve as lead plaintiff, which we would be pleased to
discuss with you. Please contact James E. Miller, Esquire (866/540-5505;
[email protected]), or James C. Shah, Esquire (877/891-9880;
[email protected]), if you would like to discuss this action or
have any question regarding this notice or your rights.

Shepherd, Finkelman, Miller & Shah, LLC
(http://www.classactioncounsel.com) is a national law firm that represents
investors, including institutions and individuals, as well as consumers in
class action and other complex litigation, and maintains offices in
Connecticut, Florida, New Jersey and Pennsylvania. The firm’s attorneys have
appeared in matters on behalf of our clients throughout the United States and
have been appointed lead counsel in a number of class actions and corporate
governance matters.

Web Site: http://www.classactioncounsel.com

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