FOR IMMEDIATE RELEASE

Date: MARCH 2004

For more information contact: Mike Seiber - (619) 280-2600

KRISPY KREME DOUGHNUTS SIGNS LEASE
AT CREEKSIDE MARKET PLACE

San Marcos, CA 92069 - The City of San Marcos has ground leased approximately 34,000 square feet of land to construct an approximately 4,000 SF building with a drive-thru in the Creekside Market Place located at San Marcos Blvd. and Highway 78, San Marcos, CA 92069 to Great Circle Family Foods, LLC, doing business as Krispy Kreme Doughnuts.

The lease is for 15 years and a consideration of $1,485,000.00, according to Flocke & Avoyer Commercial Real Estate. The Tenant anticipates an August, 2004 opening.

Mike Seiber and Bill Thaxton of Flocke & Avoyer Commercial Real Estate represented the Lessor in this transaction. The Lessee was also represented by Mike Seiber of Flocke & Avoyer.