Landec Food Subsidiary Achieves Record Weekly Shipping Volume in Value Added Eat Smart Specialty Product Line

Landec Corporation a developer and marketer of technology-based polymer products for food, agricultural and licensed partner applications, announced today that during the third week of November its food subsidiary Apio, Inc., recorded its highest one week sales volume in its history for its value added products division. Over the past year, Apio has introduced several new fresh-cut vegetable items for the retail grocery segment. Products include: individually wrapped broccoli crowns shipped in Intellipac(TM) iceless case liners, a newly designed vegetable party tray and a variety of vegetable snack trays. Apio has already been shipping broccoli crowns in case liners using Intellipac specialty packaging and has now added individually wrapped crowns to increase convenience in handling for the retail grocer and consumer. The use of Intellipac specialty packaging can compensate for temperature abuse and can result in substantial savings on freight expense by eliminating the weight and space needed for ice, and by reducing spoilage for the retailer. The newly launched Eat Smart(R) party tray (see picture) is designed to look like it was freshly made in the retail grocery store. The product includes an array of fresh-cut vegetables packaged in a unique, patent-pending tray design, which utilizes Intellipac specialty packaging technology. The new party tray is two and a half pounds and includes: broccoli, mini slim cut carrots, celery, grape tomatoes and ranch dip. The rectangular tray design allows for convenient storage in consumer's refrigerators and compliments the Company's existing party tray line. Additionally, the Company is commercially launching smaller ready-to-eat vegetable snack trays under the Eat Smart Snak Pak(R) line. These convenient precut and packaged vegetable snack trays include the 16-ounce Veggie Snak Pak and the 7- 1/2 ounce Mini Snak Pak. Both packs contain carrots and celery coupled with dips. The Snak Pak line is in response to the recent trend toward healthier food alternatives for consumers with busy lifestyles. All of the items have a 17-day shelf life adding ease to distribution and merchandising. Since 1996, Apio has commercially marketed a complete line of fresh-cut vegetable products using Landec proprietary Intellipac specialty packaging under the Eat Smart brand. Intellipac provides the ideal atmosphere within the package to extend shelf life and preserve the freshness of the product and allows the company to distribute its products without ice. The product line includes broccoli florets, broccoli slaw, broccoli and carrots, broccoli and cauliflower, cauliflower florets, vegetable medley and vegetable stir-fry in twelve-ounce, two-pound and three-pound packages. In addition to fresh-cut bagged vegetables, Apio has a full line of fresh-cut vegetable party trays packaged with Intellipac specialty packaging.