Landec Corporation said today that the 12-ounce Eat Smart(TM) product line of fresh-cut vegetables marketed by its wholly owned subsidiary Apio, Inc. is being sold in more than 20 percent of stores owned by the nation's top twenty-five retail chains less than one year after its introduction.

Sales of the 12-ounce products are currently averaging in excess of 135,000 units per week and have grown 15 percent during the past two months. The line includes broccoli florets, broccoli slaw, broccoli and carrots, broccoli and cauliflower, cauliflower florets, vegetable medley and vegetable stir-fry. The company said its "Eat Smart'' product line is also now available with a bilingual French and English package for distribution in Eastern Canada.

Based on the success of the 12-ounce product line, Apio has introduced a two-pound line of fresh cut vegetables for the retail supermarket category. Initial products will include broccoli florets, vegetable medley and vegetable stir-fry and utilize clear laminated film for a crisper look and ease of merchandising.

"The tremendous market acceptance of our value added Eat Smart products demonstrates the significant opportunity for fresh-cut produce,'' noted Gary T. Steele, Landec chairman and chief executive officer. "During 1999, Apio packed approximately 48 million pounds of fresh-cut vegetables utilizing our Intellipac(TM) breathable packaging technology. We are optimistic that our two-pound product line, along with the development of other new products, will generate continued growth in the future,'' he added.

Since 1996, Landec and Apio have commercially marketed products that use Landec's Intellipac breathable membranes for pre-made film bags, film roll stock and trays used in the "Eat Smart'' fresh-cut produce line of products. The line is currently available in over 3,500 retail supermarkets and 500 club stores throughout the country. 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. As a result of the temperature responsiveness of the breathable membranes, the optimal
atmosphere inside a package is maintained as temperatures change during the distribution process.

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.

Company news release
N2784