June 6, 2002

PRESS RELEASE

DUNKIN' DONUT OWNER PLEADS GUILTY TO TAX FRAUD

Boston, MA... A West Newbury, Massachusetts man, the owner of several Dunkin' Donuts franchises, plead guilty today to tax charges.

United States Attorney Michael J. Sullivan and Michael P. Lahey, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation, announced today that
MANUAEL SARDINHA, age 49, of 30 Turkey Hill Road, West Newbury, Massachusetts, pleaded guilty before U.S. District Judge Nancy Gertner to a three count information charging him with filing false federal income tax returns.

At today's plea hearing, the prosecutor told the Court that had the case proceeded to trial, the evidence would have proven that SARDINHA, owned three Dunkin' Donut shops in the Greater Boston area. From 1994 to 1997, SARDINHA participated in a kickback and false invoicing scheme with West Lynn Creamery ("WLC") in which he was able to choose among inflated prices that he wanted to pay to WLC for cream and other dairy products. WLC then "rebated" the difference between the inflated invoice price and the real price of goods back to SARDINHA through rebate checks made payable to his franchises. SARDINHA diverted approximately $ 240,000 in rebate monies, converted them to personal use, and failed to report the monies as income to the IRS.

Judge Gertner scheduled sentencing for September 6, 2002, at 3 pm. SARDINHA faces up to 3 years' imprisonment, to be followed by 1 year of supervised release, and a $100,000 fine.

The case was investigated by Special Agents of the U.S. Internal Revenue Service, Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Diane Freniere in Sullivan's Economic Crimes Unit.

Press Contact: Samantha Martin, (617) 748-3139