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 announced its food technology subsidiary, Apio, Inc., has sold its Reedley, California fruit processing facility. 

The land and facility were sold for net proceeds of $2.2 million, resulting in a gain of approximately $480,000, which will be used to pay down long-term debt. The equipment in the facility has been leased. The lease contains an option to buy the equipment at the end of the lease term.

An Apio strategic partner has purchased the facility and its sale will not adversely impact the company's tree fruit sales and marketing operations. Landec exited the business of processing tree fruit at the end of fiscal 2000, but remained focused on the sales and marketing area.

"Exiting the fruit processing operation has enabled the company to make more strategic use of our capital and human resources, resulting in expanded distribution for the fruit products the company markets," noted Nick Tompkins, Chief Executive Officer of Apio. "We have and will continue to develop strategic alliances with major growers to support the ongoing fruit sales and marketing programs," he added.

Apio, Inc.'s fruit division markets tree fruit and grapes under its Eat Smart(TM) and licensed Bari(R) brands. The company also markets Flavor Safari(TM) pluots(R), white flesh peaches and nectarines, and sub-acid yellow peaches. These marketing programs will continue in the future.

About Apio

Apio is the major supplier of modified atmosphere packaging for high respiring produce such as broccoli, cauliflower and combinations of other vegetables. The company has developed numerous packages from twelve-ounce single meal portions, to two-pound and three-pound packages, to party trays and now case liners for whole vegetables for the retail, foodservice and export markets.

About Landec

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.