Landec Corporation (Nasdaq:LNDC - News) a developer and marketer of technology-based polymer products for food, agricultural and licensed partner applications, announced today that its food subsidiary Apio, Inc., has entered into an exclusive packaging and marketing agreement with Dole Fresh Vegetables, Inc. for Apio to sell and distribute a line of fresh cut produce under the DOLE® brand in the United States.

According to the exclusive multi-year agreement, Apio will package, market and sell a broad line of Dole branded pre-cut vegetables and party trays from its processing facility in Guadalupe, CA. Under the arrangement, Apio will provide national sales support and retail distribution of the brand name product line in exchange for a royalty payment to Dole.

The Dole brand packaged vegetable and party tray lines will utilize Landec's proprietary Intelimer® packaging technology, which extends shelf life, reduces product shrink and compensates for temperature fluctuations throughout the cold chain.

The licensing agreement will expand Apio's presence in the fresh cut vegetable category through the sales and distribution of both the Dole brand and its existing Apio Eat Smart® brand. The addition of the Dole brand will enable Apio to expand its market share in the fast growing fresh-cut produce category. Apio plans to begin distribution of the Dole fresh-cut vegetable and party tray line late summer of 2003.

"This licensing agreement is market validation of our successful proprietary Intelimer packaging technology and of our quality programs and operational efficiencies which will support one of the premier consumer brands in the world," stated Gary Steele, Landec's Chief Executive Officer. "This agreement is consistent with our stated goal to continue to aggressively grow our value-added specialty packaging business this year."

"This agreement allows us to expand the Dole brand within the growing fresh-cut produce market," commented Ron Midyett, Sr. Vice President of Operations for Dole Fresh Vegetables. "The combination of the Dole brand with Apio's processing capabilities will allow us to enter a new market segment with high quality products."

Since 1996, Apio has commercially marketed a complete line of fresh-cut vegetable products using Landec proprietary Intelimer specialty packaging under the Eat Smart brand. Intelimer provides the ideal atmosphere within the package to extend shelf life and preserve the freshness of the produce 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 Intelimer specialty packaging.