Landec Corporation (Nasdaq:LNDC), 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 introduced a low carbohydrate vegetable tray product for sale to retail grocery chains -- a mini 19 oz. vegetable tray with cut vegetables and dip.

This new tray product recognizes the demand from retailers and mass merchandisers to provide healthy options for individuals following a low-carb lifestyle, as well as for consumers looking for healthy vegetable choices. The new Eat Smart(R) Carb-Count tray contains celery, carrots, broccoli and the new Lighthouse(R) Brand 'One Carb Plus' ranch dip. Each four-ounce serving of vegetables and dip has a low carb-count of only 6 grams.

Equally important is that this tray offers a simple and convenient way for individuals to enjoy fresh vegetables anywhere, anytime. The packaging provides a great snack for an individual or a small group. Many consumers take vegetable trays to the office, or park, or eat them between meals as a substitute for less healthy traditional snacks.

Apio holds a leading market share position in vegetable trays with its existing line of retail vegetable trays. Apio is using its strong position in the vegetable tray category to fill a need in the marketplace by introducing the Carb-Count tray product. The new tray features an innovative compact design with a clear tray on the bottom so that consumers can see the product from the bottom as well as from the top and be assured of its freshness. The new tray began shipping to retailers and mass merchandisers nationwide in July as an expansion of the existing Eat Smart family of vegetable tray products.

"We have selected produce items that are naturally low in carbohydrates and high in vitamins. With nutritional labeling, Apio is educating consumers about the variety of nutritional benefits offered by eating fresh vegetables. The new Eat Smart Brand Carb-Count mini vegetable tray offers 130% of the Recommended Daily Allowance for Vitamin A and 45% of the RDA for Vitamin C," stated Nick Tompkins, Apio's President and Chief Executive Officer.

According to AC Nielsen data for the second quarter ended June 30, 2004, Apio is the number one vegetable tray manufacturer in the country with a market share of 37%. In addition, Apio's 2.5-pound Eat Smart vegetable tray, introduced in October of 2002, is the best selling vegetable tray in the retail market.

Apio reached a milestone in fiscal year 2004 by achieving over $100 million in revenues from its value-added fresh-cut vegetable products packaged in Landec's proprietary Intelimer(R) packaging, unique for its ability to extend the shelf life of fresh-cut vegetables. Apio continues to pursue innovative products to create excitement among consumers and propel the growth of the fresh-cut vegetable category.

"With this new Carb-Count mini tray, along with our other vegetable trays, we are successfully transitioning vegetable tray products from their traditional role as a special occasion purchase to an everyday purchase for consumers. By increasing variety in both ingredients and size of trays, we have created daily options that provide solutions for people on the go. Our tray product line-up ranges from our larger 2.5-pound vegetable trays with over 12 servings, to our 22-ounce Eat Smart Petite tray, to the new 19-ounce Carb-Count tray. We have created a set of versatile options that can be carried as a snack or used with various sized groups," stated Michael Casazza, Apio's Senior Vice President of Sales and Marketing.

In addition, Apio has recently begun packaging some of its 12-ounce fresh-cut vegetable products with "low carb" labeling on the packaging to educate consumers about the carbohydrate content of the products. This new label furthers Apio's objective to provide more information and choice to the consumer. The addition of the Carb-Count tray to the Eat Smart family provides an easy and attractive option for consumers following a low-carb lifestyle, as well as for consumers looking for healthy vegetable choices.

About Apio

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. In June, the Company announced that it had 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(R) Brand in the United States.

The Company's proprietary packaging technology provides an optimal atmosphere within the package to extend shelf life and preserve the freshness of the produce and allows Apio 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.

About Landec Corporation

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 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.