Menlo Park, California
June 11, 2002

Landec Corporation (Nasdaq: LNDC), a developer and marketer of technology-based polymer products for food, agricultural and licensed partner applications, today reported record quarterly net income and earnings per share results for the second quarter ended April 28, 2002 and reported net income for the first six months of fiscal year 2002.

Total revenues for the quarter were $57.1 million versus $59.8 million in the prior year second quarter of fiscal 2001. Landec reported net income applicable to common shareholders of $5.3 million, or $0.24 per diluted share, compared with net income of $3.2 million, or $0.15 per diluted share, for the year ago quarter. Revenues for the first six months of fiscal 2002 were $97.5 million versus revenues of $104.5 million a year ago. The Company reported net income applicable to common shareholders of $1.7 million or $0.08 per diluted share for the first six months of fiscal 2002 compared to a loss of $757,000 or $0.05 per share, in the first six months of fiscal 2001. EBITDA -- earnings before interest, taxes, depreciation and amortization -- for the second quarter were $6.5 million versus $5.3 million in the second quarter of last year. For the six-month period EBITDA were $4.3 million versus $3.2 million for the same period last year.

The results for the second quarter and for the first six months of fiscal 2002 include the impact of the change in accounting for the amortization of intangibles. Intangibles deemed to have an indefinite life are no longer amortized. The implementation of this change increased second quarter net income by approximately $640,000, or $0.03 per diluted share and net income for the first six months by approximately $1.3 million, or $0.06 per diluted share.

"Our second quarter results reflect record net income levels for the Company as we continue to experience seasonal patterns in our revenues and profits, with the second quarter historically showing the highest revenue and profit results," said Gary Steele, President and CEO of Landec. "Despite a weak year for the corn seed industry and industry-wide produce sourcing problems early in the quarter, Landec's second quarter net income increased $2.1 million or over 67% compared to the year ago quarter, and by $8.9 million over the prior quarter. The initiatives we implemented in fiscal year 2001 are starting to be reflected in our bottom line results. Revenues are down 4% for the quarter and 7% for the first six months as compared to the same periods last year because of the Company's decision to downsize its "fee-for-service" commodity produce business. However, gross margins as a percent of sales increased to 24% in the second quarter of fiscal year 2002 from 19% in last year's second quarter and for the six months gross margins have increased to 19% this year from 15% last year," continued Steele.

"The seasonality in quarterly revenues and profits is due to two major factors," continued Steele. "First, the Company's seed technology subsidiary, Landec Ag, records virtually all of its revenues and profits during the second fiscal quarter. Revenues for Landec Ag have increased over 20% in the first six months of fiscal year 2002 as compared to the same period last year and operating income is up more than 50%. The increase in operating profit at Landec Ag is a direct result of revenue growth combined with the cost streamlining initiatives instituted beginning last year. Second, the Company's food technology subsidiary, Apio, can experience produce sourcing issues in the winter months, which overlaps with the Company's first and second quarters. Unseasonable weather this past winter adversely affected Apio's sourcing of crops which resulted in $3.0 million in unplanned excess charges to cost of sales during the first six months of fiscal 2002.

"The success of our Intellipac(TM) food packaging technology has allowed us to begin to convert not only fresh-cut produce but also whole produce commodities into value added products that bring real differentiation to retailers and to growers," Steele added. "Domestic shipments of broccoli products and green onions in iceless packaging that utilize Intellipac technology have experienced compounded growth in units of nearly 20% per month since their introduction in November 2000. More recently we have begun commercially shipping Eat Smart(TM) bananas to our first commercially contracted
retail customer and are conducting retail trials with several additional large retailers and banana companies. We are very optimistic about the future of our banana technology and are hopeful that we will have other commercial customers in the near future. With the growth of Apio's Eat Smart products using our proprietary Intellipac specialty packaging, we project that over 50% of Apio's revenues this year will be derived from technology-based products up from 40% last year.

"We expect fiscal 2002 revenues to be lower than the previous year due to our strategic decision to exit the cash, labor and equipment-intensive field harvesting and packing operations portion of Apio's 'fee-for-service' business which will decrease service revenues for the year, as can be seen in our year to date results. We expect product sales revenue to increase 20% to 25% from the prior year and gross margins as a percent of product sales to continue to increase. We continue to have as our goal to be profitable for fiscal year 2002," stated Steele.

Commenting on the financial condition of the Company, Steele said, "With the quarter ending cash position of $8.6 million, the projected cash from the sale of Dock Resins and positive cash flow from operations expected for the rest of the fiscal year, the Company believes it will have sufficient cash resources to effectively operate the business for the foreseeable future without additional equity placements. During the first six months of fiscal year 2002, the Company has (1) paid down debt by $10.2 million or a 31% reduction from the end of fiscal year 2001, (2) reduced the debt-to-equity ratio from 67% at the end of fiscal year 2001 to 39% at the end of the second quarter of fiscal year 2002 and, (3) more than doubled net working capital from $5.4 million at the end of fiscal year 2001 to $11.7 million at the end of the second quarter of fiscal year 2002."

Operating Highlights and Outlook

Apio Expands Iceless Packaging Products and Launches Banana Technology

During the first six months of fiscal year 2002, Apio's iceless packaging product line continued to experience accelerated growth. Apio now has six iceless packaging products for vegetables utilizing our Intellipac case liner technology, including bunch and crown broccoli, eighteen pound cartons of loose broccoli florets, Asian cut broccoli crowns, export cut broccoli crowns and green onions. The expansion of the iceless packaging product line has the potential to generate substantial revenues for Apio over the coming quarters.

In addition, the Company has launched its banana program using Intellipac technology and entered into its first commercial retail banana contract. Apio is also conducting during the second half of fiscal year 2002 more retail banana trials with several top retailers in the U.S. and with select banana companies. Bananas are a $4 to $4.5 billion annual worldwide market for distributors, which in turn, is a $9 to $10 billion annual worldwide market for retailers. Bananas are the nation's leading produce item, contributing approximately nine to ten percent of produce department sales in the United States.

Landec Ag Accelerates Sales and Trials of Technology Products

Landec Ag, the Company's Intellicoat(R) seed coating subsidiary, has expanded its field trials and commercial sales during fiscal year 2002 for its new Early Plant(TM) hybrid corn and Relay(TM) Intercropping of wheat and coated soybean. The new products join the existing line-up of Fielder's Choice Direct(R) hybrid corn and Intellicoat coated Pollinator Plus(TM) seed corn coatings.

Pollinator Plus seed coatings are applied to inbred seed corn to delay seed germination and extend the pollination window thus reducing risks and increasing yields for seed companies. Pollinator Plus is already being used by 30 major seed companies in the production of hybrid seed corn. Seed companies are rapidly increasing their use of this technology, and this product line has been planted on over 60,000 acres in 2002 versus 20,000 acres in 2001.

Early Plant hybrid corn is designed to allow corn farmers to safely and reliably plant hybrid corn two to three weeks earlier than normal, since Landec's proprietary Intellicoat coating delays germination until the soil reaches the optimal soil germination temperature. Otherwise, planting two to three weeks earlier in cold, wet soil could cause poor or no germination to occur. Allowing the farmer to have a wider planting window lowers costs, reduces risks and potentially increases yields. The program for Early Plant hybrid corn has been expanded to approximately 15,000 acres this spring from 3,000 acres in 2001.

In addition, eight of the top U.S. seed companies are conducting separate evaluations of the Intellicoat Early Plant hybrid corn technology on their own hybrids during 2002. Successful results could lead to licensed partnerships as early as 2003.

Landec Ag also directly markets and sells seed products using a sophisticated telephonic and electronic call center headquartered in Monticello, Indiana. Last spring, Landec Ag introduced a new Harvestar(TM) product line, which offers high performance alfalfa and nutrient enhanced hybrid seed corn. These products are being sold to new and existing customers who have expressed interest in these types of seeds.

Landec Corporation designs, develops, manufactures and sells temperature-activated and other specialty polymer products for a variety of food, agricultural and licensed partner applications. The Company's temperature-activated polymer products are based on its proprietary Intelimer(R) polymers which differ from other polymers in that they can be customized to abruptly change their physical characteristics when heated or cooled through a pre-set temperature switch.