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 created a new division located at Apio's headquarters in Guadalupe, California, which will focus on developing and marketing technology based products.

This new division was formed to advance sales of Landec's proprietary packaging technology under the new BreatheWay(TM) trademark. Apio's technology division, under the leadership of Cali Lenert, Apio's Manager of Business Development, will include the BreatheWay proprietary banana packaging and the BreatheWay packaging technology for other shelf-life sensitive vegetables and fruit, as well as unique packaging solutions for large shipping containers and pallet-sized containers. Apio currently sells approximately 48 million fresh-cut value-added produce packages annually to retail grocery and club stores under the Eat Smart(R) Brand and the Dole(R) Brand using the BreatheWay membrane technology.

The BreatheWay membrane technology regulates the levels of oxygen and carbon dioxide within a package to maintain optimum atmospheres for vegetables and fruit in order to extend the shelf life of the produce. The Company's proprietary packaging technology also compensates for changes in "cold chain" temperatures that might be experienced during shipping and storage. The BreatheWay technology allows Apio to convert not only fresh-cut produce but also whole produce into value-added products that bring real differentiation to Apio's customers and partners.

"Our unique and proprietary technology for extending the shelf life of produce has numerous applications outside of our value-added fresh-cut vegetable business," stated Nick Tompkins, President and CEO of Apio. "The first commercial application to be included in this new division is our banana packaging technology currently being purchased and used by Chiquita Brands International to extend the shelf life of Chiquita(R) Brand bananas in specific markets. We intend to focus a dedicated team at Apio to expand the use of our BreatheWay packaging technology to vegetables and fruit not sold by Apio's value-added business and for higher volume applications such as shipping containers and pallet-size uses. Cali Lenert, whose background includes brand management and product development experience at Paramount Farms, Seminis Vegetable Seeds and Apio, brings the desired industry experience and technical leadership required to lead this new business at Apio."

"Our goal is to grow Apio's technology division into a very profitable business within the next couple of years," commented Gary Steele, President and CEO of Landec. "We have been spending approximately $1.0 million per year on developing our packaging technology and applications using our proprietary polymer technology. We plan to take advantage of our past and future investments in packaging and build a business that has significant growth and profit potential based on our unique packaging solutions. Landec is focused on the long-term benefits to our shareholders and we believe that investing today to develop value-added proprietary packaging products to augment our future planned growth is in the best interest of our Company and our shareholders."

About Apio Inc.

Since 1996, Apio Inc. has commercially marketed a complete line of fresh-cut vegetable products using Landec's proprietary BreatheWay specialty packaging under the Eat Smart Brand. In 2003, 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 Brand in the United States. In 2004, the Company announced it had entered into an exclusive agreement with Chiquita for Apio to supply Chiquita with its proprietary banana packaging technology in specific markets on a worldwide basis for the ripening, conservation and shelf-life extension of bananas.

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 trays packaged with its 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(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.