Landec Corporation, a developer of specialty polymer products for food, agricultural, industrial and medical applications, today reported results for the first quarter ended January 30, 2000.

Total revenues for the quarter were $33.8 million versus $5.3 million in the first quarter of fiscal
1999. Landec reported a loss of $2.7 million, or $0.18 per share, compared with a loss of $1.6
million, or $0.12 per share, a year ago. The results for the first quarter of fiscal 2000 included
the impact of Landec's acquisition of Apio, Inc., which occurred on December 2, 1999. The
results for the first quarter of fiscal 1999 included licensing revenue of $750,000 received from
Alcon Laboratories for Landec's PORT(TM) device.

"The majority of revenue growth was due to the two months of revenues from newly acquired
Apio,'' noted Gary T. Steele, chairman and chief executive officer of Landec.

Apio is one of the nation's leading marketers and packers of produce and specialty packaged
fresh-cut vegetables. Located in Guadalupe, California, Apio had proforma revenues for the
twelve months ended December 31, 1999 of approximately $160 million. For the past three
years, Landec and Apio have commercially marketed products that incorporate Landec's
Intellipac(TM) breathable membranes used in Apio's "Eat Smart(TM)'' line of fresh-cut
produce. Landec's Intellipac breathable membranes help extend produce shelf life by selectively
managing the internal atmosphere of a package to optimally fit the requirements of living,
respiring produce. The breathable membranes are based on the company's proprietary Intelimer
technology that can be customized to maintain an optimal oxygen and carbon dioxide
environment inside a package for preserving perishable produce.

"We continue to believe that we will meet our forecast to be profitable for this fiscal year. The
company expects the first quarter of fiscal 2000 to be its weakest quarter primarily due to the
seasonality of Fielder's Choice, Landec's seed distribution business, which records virtually all of
its revenue during the company's second fiscal quarter,'' Steele added.

Steele said the company's operating expenses during the first quarter were also impacted by
costs incurred by Apio associated with sourcing product from the desert areas of southwest
Arizona and southern California, since certain produce can not be grown in the central coast of
California during the winter months, as well as startup costs associated with Apio's new 35,000
square foot value-add food processing plant and establishing a new manufacturing facility in
Menlo Park for Intellipac breathable membrane products.

Steele said that during the quarter Apio initiated programs to broaden its product offerings,
including a new export program which will increase Apio's foreign presence in fruit. In addition,
Apio has signed a marketing agreement for bananas with a major importer. "Both of these
efforts have the potential to generate substantial revenues for Apio over the coming quarters,'' he
said.

Steele said that Landec also recorded initial product revenues during the quarter from its
Intellicoat(TM) seed coating subsidiary. The company's proprietary seed coatings control seed
germination timing and can extend crop planting windows. Coated inbred seed corn represents
the first commercialization of Intellicoat products, Steele noted. "We have customers that are
leading seed companies. We are optimistic about the future of this product line. In addition, we
will be conducting major field trials this spring for the next generation of Intellicoat products, a
coated soybean seed targeted for relay cropping of wheat and soybean,'' he added. Relay
cropping enables farmers to plant two crops on the same acreage in the same year, increase
yields, and lower overall production costs.

Commenting on the financial condition of the company, Steele said, "We ended the quarter in
solid shape with $8.4 million in cash versus $3.2 million at October 31, 1999, and shareholders'
equity increased to $50.1 million versus $31.8 million at the end of the fiscal 1999. Although
debt has increased as a result of the acquisition of Apio, our debt is equal to approximately
one-half of our equity,'' he continued.

Landec Corporation designs, develops, manufactures and sells temperature-activated and other
specialty polymer products for a variety of food, agricultural, industrial and medical 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
N2574