Hosted Solutions Lands Managed Hosting Deal With Krispy Kreme

Raleigh, NC – October 5th, 2006 – Hosted Solutions, the Carolinas’ leading data center and Web hosting company, today announced that Krispy Kreme, the leading branded retailer and wholesaler of high-quality doughnuts, has selected the company as its web hosting provider.

Krispy Kreme currently operates approximately 300 Krispy Kreme stores and 90 satellites across the United States, Australia, Canada, Mexico, South Korea and the United Kingdom. Krispy Kreme’s web presence is integral to the company’s daily operations including employee training, franchisee and media relations, apparel and gift card sales and fundraising. To ensure maximum uptime of these critical functions, Hosted Solutions will provide Krispy Kreme a fully managed web application including servers, firewall, tracking software and Microsoft licensing out of the company’s Charlotte data center.

“What impressed us the most about Hosted Solutions was their team’s personal dedication to ensuring that we receive the right technical solutions for our needs,” said Nathan Mucher, Vice-President of Information Services for Krispy Kreme. “Hosted Solutions’ high touch approach to managed services made them a clear fit for Krispy Kreme,” he added. “Krispy Kreme simply couldn’t ask for a better web hosting partner,” commented Kittie Pearson, Interactive Systems Manager for Krispy Kreme.

“It is a great pleasure adding a well-respected North Carolina-based company such as Krispy Kreme to our client roster,” commented Hosted Solutions CEO Rich Lee. “We work strenuously to demonstrate our commitment to providing unmatched service to companies in our market. Our clients, including Krispy Kreme, appreciate the time we dedicate to understanding their unique business challenges and goals in order to provide winning solutions.”

Hosted Solutions’ full suite of services includes Colocation, Fully-Managed Servers, Dedicated Servers, Business Continuity Services, Managed Storage, Enterprise Backup, Managed Firewall, Intrusion and Vulnerability Detection, Load Balancing, High Availability Clustering and comprehensive 24/7 Monitoring and Management of e-commerce infrastructures.

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About Hosted Solutions
Hosted Solutions provides customized managed and dedicated web hosting solutions to more than 375 clients from its SAS 70 Type II compliant data centers. Hosted Solutions offers unmatched technical expertise in best practices and best-of-breed technologies as well as flexible and scalable packages and a la carte services. For more information about Hosted Solution's offerings contact sales@hostedsolutions.com, call 919-852-0690 in the Triangle, 704-423-9174 in Charlotte, or visit www.hostedsolutions.com.

About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme is a leading branded retailer and wholesaler of high-quality doughnuts, including its signature Hot Original GlazedTM. There are currently approximately 290 Krispy Kreme factory stores and 90 satellites operating systemwide in the United States of America, Australia, Canada, Hong Kong, Indonesia, Mexico, South Korea and the United Kingdom. Krispy Kreme can be found on the Internet at http://www.krispykreme.com.

Information contained in this press release, other than historical information, should be considered forward-looking. Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Krispy Kreme's operating results, performance or financial condition are the outcome of the pending formal investigation by the United States Securities and Exchange Commission and the investigation by the United States Attorney's Office for the Southern District of New York, the pending shareholder class action, the pending shareholder derivative action, the pending ERISA class action, further actions by the Special Committee, our auditors' ongoing review of our financial statements, actions taken by lenders to the Company and its joint ventures and actions taken by our franchisees, dependence on the ability of our franchisees to execute on their business plans, supply issues, changes in consumer preferences and perceptions, the failure of new products or cost saving initiatives to contribute to financial results in the timeframe or amount currently estimated and numerous other factors discussed in Krispy Kreme's periodic reports and proxy statements filed with the Securities and Exchange Commission.