Landec Corporation today reported results for the third quarter and nine months ended July 31, 1999.

Revenues for the third quarter of fiscal 1999 were $5,530,000 compared with revenues of $5,274,000 for the same period a year ago. Landec reported a net loss of $2,027,000, or $0.15 per share for the third quarter of fiscal 1999, versus a loss of $1,314,000, or $0.10 per share, for the same period a year ago.

For the first nine months of fiscal 1999, Landec reported revenues of $29,945,000 compared with
revenues of $28,254,000 for the same period a year ago. The company reported a net loss of
$217,000, or $0.02 per share for the first nine months of fiscal 1999, versus a loss of $291,000, or
$0.02 per share, for the same period a year ago.

"Third quarter product revenues increased 10% over the third quarter of last year. The growth in
revenues reflects a record quarter for our Intellipac® breathable membranes used in fresh-cut
produce packaging. Intellipac sales increased 42 percent over the third quarter of last year. At the
same time, and as planned, we recorded minimal revenues from Fielder's Choice Direct(TM), our
direct marketer of hybrid seed corn, which generates almost all of its sales in the second quarter,'' said Gary T. Steele, president and chief executive officer of Landec.

"We have now sold more than 30 million Intellipac membrane packages and we remain excited
about the ongoing potential for this product, based on the market's growth and product line
expansions,'' he continued.

In mid-August, Landec announced that Apio, Inc. had expanded its Eat Smart(TM) produce line
with a variety of new fresh-cut produce packages utilizing the Intellipac breathable membrane
technology. These include new varieties of 12-ounce packages and vegetable trays, and a new
disposable bulk bin for the retail grocery market.

Steele said that the company experienced improved product gross margins for the nine month period, compared to the same period a year ago. The growth in gross margins was offset by increased investment in the company's agricultural seed coating and distribution businesses, which resulted in a net loss for the company. "As we announced earlier this week, we will begin commercializing our Intellicoat(TM) seed coating products which are designed to control water uptake and seed germination. We will be targeting the inbred corn seed market initially and have had strong expressions of interest from leading seed companies.

"In addition, we are making investments in Fielder's Choice, our direct marketer of hybrid seed
corn, including e-commerce capability which was launched earlier this month,'' he added. Planned
investments in seed inventory to support next year's growing season and capital equipment to expand manufacturing capacity were also made during the quarter, temporarily reducing the company's cash balances.

Landec Corporation designs, develops, manufactures and sells temperature-activated and other
specialty polymer products for a variety of food packaging, industrial high performance materials,
and agricultural 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.

Company news release
N2069