Krispy Kreme Signs Three-Year, Multimillion-Dollar Network Services Agreement With Qwest

DENVER, August 23, 2004 ? Qwest Communications International Inc. (NYSE: Q) today announced that it has formed a new agreement with Krispy Kreme Doughnuts, Inc. (NYSE: KKD) to deliver a variety of data and voice services. The three-year agreement will enable Krispy Kreme to save costs on its internal communications while relying on Qwest?s national, state-of-the-art network.

Under the agreement, Qwest will deliver a variety of services under its iQ Networking? portfolio, including private routed network and network management services to assist in data communications between disparate office locations. Qwest will also give Krispy Kreme a national long-distance voice solution that includes calling cards for employees to use while they are traveling.

?Qwest iQ Networking is good for our business because it allows us to expand our services as we grow, and it?s a simplified solution that?s designed to accommodate our company applications,? said Sam Gray, director of technical services for Krispy Kreme. ?We?re also pleased with the excellent customer service we received from our Qwest account team.?

?I?m pleased to expand our relationship with Krispy Kreme, and their company is growing by leaps and bounds every year,? said Clifford S. Holtz, executive vice president, business markets group for Qwest. ?By delivering our flexible iQ Networking solution with top-tier customer service, we hope to continue to grow our relationship and increase our presence in Krispy Kreme?s communications portfolio.?

Qwest iQ Networking is one of the telecommunications industry?s most customer-oriented wide area networking (WAN) services. Because businesses today face a complex and changing technology environment, iQ Networking helps customers simplify their networks while still leveraging their existing technologies. iQ Networking focuses on solving business problems for customers, reducing total cost and delivering an unparalleled service delivery experience.

About Qwest

Qwest Communications International Inc. (NYSE: Q) is a leading provider of voice, video and data services. With more than 40,000 employees, Qwest is committed to the ?Spirit of Service? and providing world-class services that exceed customers? expectations for quality, value and reliability. For more information, please visit the Qwest Web site at

About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme is a leading branded specialty retailer of premium quality doughnuts, including the Company's signature Hot Original Glazed. Krispy Kreme currently operates 389 stores in 44 U.S. states, Australia, Canada, Mexico and the United Kingdom. Krispy Kreme can be found on the World Wide Web at

Forward Looking Statement Note

This release may contain projections and other forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by us with the Securities and Exchange Commission, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: access line losses due to increased competition, including from technology substitution of our access lines with wireless and cable alternatives; our substantial indebtedness, and our inability to complete any efforts to de-lever our balance sheet through asset sales or other transactions; any adverse outcome of the SEC's current investigation into our accounting policies, practices and procedures and certain transactions; any adverse outcome of the current investigation by the U.S. Attorney's office in Denver into certain matters relating to us; adverse results of increased review and scrutiny by Congress, regulatory authorities, media and others (including any internal analyses) of financial reporting issues and practices or otherwise; rapid and significant changes in technology and markets; any adverse developments in commercial disputes or legal proceedings, including any adverse outcome of current or future legal proceedings related to matters that are the subject of governmental investigations, and, to the extent not covered by insurance, if any, our inability to satisfy any resulting obligations from funds available to us, if any; potential fluctuations in quarterly results; volatility of our stock price; intense competition in the markets in which we compete including the likelihood of certain of our competitors emerging from bankruptcy court protection or otherwise reorganizing their capital structure and competing effectively against us; changes in demand for our products and services; acceleration of the deployment of advanced new services, such as broadband data, wireless and video services, which could require substantial expenditure of financial and other resources in excess of contemplated levels; higher than anticipated employee levels, capital expenditures and operating expenses; adverse changes in the regulatory or legislative environment affecting our business; and changes in the outcome of future events from the assumed outcome included in our significant accounting policies.

The information contained in this release is a statement of Qwest's present intention, belief or expectation and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, the economy in general and Qwest's assumptions. Qwest may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Qwest's assumptions or otherwise. The cautionary statements contained or referred to in this release should be considered in connection with any subsequent written or oral forward-looking statements that Qwest or persons acting on its behalf may issue. This release may include analysts' estimates and other information prepared by third parties for which Qwest assumes no responsibility.

The company expects to file in August 2004 its form 10-Q for the three month period ended June 30, 2004. Please refer to the form 10-Q for a full description of second quarter 2004 results.

Qwest undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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