Great Circle Emerges from Chapter 11; Krispy Kreme Doughnuts is Alive, Well and Expanding Again in Southern California

In conjunction with the Plan, Great Circle has:

• Substantially restructured its operations and balance sheet;

• Assured the ongoing operation of Southern California's eleven Krispy Kreme Doughnuts locations;

• Preserved approximately 240 jobs in Southern California;

• Forged a renewed, collaborative and sustainable relationship with its franchisor; and

• Established a solid platform from which to further penetrate its market.

"This is an exciting day for everyone associated with Great Circle," commented Roger Glickman, Chief Executive Officer of Great Circle Family Foods, LLC. "Our restructuring has been a long and painful process, but we emerge as a healthy enterprise thanks to the dedication and hard work of our outstanding employees and to the loyalty of our cherished customers."

Through the bankruptcy process, Great Circle was effectively able to address its financial challenges and create a solid foundation for future success. The Company looks forward to bringing more Krispy Kreme doughnuts to more Southern Californians by opening new, cost efficient stores in the coming years.

"We are very pleased that our franchise partner Great Circle Family Foods has emerged from Chapter 11," said Steve Lineberger, President of U.S. Stores for Krispy Kreme Doughnut Corporation. "They are a strong operator, and we are very committed to assisting them as they move forward successfully. Krispy Kreme has developed an increasingly collaborative relationship with our franchisees as we continue our work to improve franchisee service and support levels. There is much that Krispy Kreme and Great Circle Family Foods can continue to learn from each other, and we look forward to being a part of their future."

Headquartered in Los Angeles, California, Great Circle is the franchisee and operator of Krispy Kreme Doughnuts stores in Southern California. Great Circle was founded in 1998. During the immediately succeeding years, it became Krispy Kreme's Franchisee of the Year, a franchise leader in quality, service and cleanliness, and a national award winner for technological advances in its reporting systems. By 2004, the Company had rapidly expanded to 31 locations, serving 800 wholesale accounts with its own distribution system, employing 1,500 people, and generating over $64 million in revenue.

From 2004 to 2007, Great Circle retrenched. Countering negative sales trends, the Company terminated its massive wholesale business, eliminated the distribution system, sold or closed twenty locations, trimmed overhead, restructured substantial bank indebtedness, and improved certain strategic relationships, including its relationship with its franchisor. Most importantly, Great Circle changed its business model to the small format store concept now being used in international markets.

Having accomplished much of its restructuring, the Company determined that completion required one more steps in the process. On August 22, 2007, Great Circle and its related entities filed voluntary bankruptcy petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Central District of California. This step enabled the Company to finalize a restructuring with secured creditors and to ensure that Great Circle may move forward with a viable business employing a hub and spoke retail system with new products and the same superb service that made it so successful from the outset. From the date of filing to the date of emergence, Great Circle has shown growth in sales and profits. During the next few years, the Company will focus on retiring residual debt obligations and refurbishing stores, while looking for growth opportunities the new economy presents.

Logos, product and company names mentioned are the property of their respective owners.

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