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The U.S. Attorney's Office for the Southern District of New York has advised Krispy Kreme that it will seek to conduct interviews of certain current and former officers and employees of the Company.

The Company believes that this investigation relates to the matters currently under formal investigation by the Securities and Exchange Commission. The Company intends to cooperate with the U.S. Attorney's Office.

A Bloomberg article says:

"The new probe comes on top of an SEC investigation that forced Krispy Kreme to say it will restate 2004 earnings because of accounting errors. The No. 2 U.S. doughnut chain, which replaced Chief Executive Officer Scott Livengood with turnaround specialist Stephen Cooper, said earlier this month it needs additional credit by the end of March to stay in business."

``Everybody likes to pile on when there is an issue,'' said Ivan Feinseth, an analyst at Matrix USA LLC, who has a ``strong buy'' rating on the stock. ``The company is under the spotlight.''

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