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FOR IMMEDIATE RELEASE
March 19, 2001

Krispy Kreme to Open Plant in Effingham

SPRINGFIELD -- Governor George H. Ryan today announced that Krispy Kreme Doughnuts, Inc. is planning to construct a new mix and distribution facility in Effingham that will create 100 new jobs over the next three years.

"Krispy Kreme has emerged as a leading national chain and we're delighted that the company is expanding its presence here in Illinois," Governor Ryan said. "Illinois' outstanding workforce and expansive transportation network provide the perfect location for facilities such as this."

Krispy Kreme will construct the company's first manufacturing facility outside of North Carolina at the Effingham Business Park. The 187,000 square foot facility will blend ingredients for the company's dry doughnut mixes, which will then be shipped to Krispy Kreme stores where doughnuts are produced. The facility is scheduled to be completed and operational during the first half of calendar year 2002.

The Illinois Department of Commerce and Community Affairs (DCCA) and Illinois Department of Transportation (IDOT) worked with Krispy Kreme officials to locate the project in Effingham by offering job training and infrastructure assistance. Krispy Kreme is also eligible for EDGE tax credits.

"By making sure we have the right ingredients for businesses to succeed, Illinois has been very successful during the last couple of years in attracting new companies to our state," DCCA Director Pam McDonough said. "Governor Ryan's commitment to improving our transportation infrastructure and quality of life has made a huge difference in DCCA's ability to compete for projects such as this."

"We appreciate the support that Governor Ryan and the State of Illinois provided to make this project a reality. Our continued sales momentum, penetration of new markets and accelerated pace of new store openings will outstrip our capacity to provide mix to our system by next year. This new plant, to be completed in the first half of next year, will triple our capacity and will provide the infrastructure to support our growth for the next several years," said Scott Livengood, Krispy Kreme Doughnuts Inc. Chairman, President and Chief Executive Officer.

"The City of Effingham has been working with Krispy Kreme for several months on this project. We are extremely proud to have been selected as the site and welcome Krispy Kreme to Effingham. We know by our association through this process that this will be a great addition to our economic base," said Effingham Mayor Robert F. Utz.



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