Landec Corporation (Nasdaq: LNDC - news), a developer and marketer of technology- based polymer products for food, agricultural and licensed partner applications, today reported results for the third quarter and nine months ended July 30, 2000.

Total revenues for the third quarter of fiscal 2000 were $61.4 million versus revenues of $5.5
million for the same period a year ago. The company reported a loss of $662,000, or $0.04 per
share, compared with a loss of $2.0 million, or $0.15 per share, in the same period a year ago.
The company said earnings before interest, taxes, depreciation and amortization (EBITDA) for the
third quarter of fiscal 2000 were $1.2 million versus a loss of $1.5 million in the same period a
year ago.

Revenues for the first nine months of fiscal 2000 were $156.0 million versus $29.9 million in the
first nine months of fiscal 1999. The company reported a loss of $581,000, or $0.04 per share,
for the first nine months of fiscal 2000 versus a loss of $217,000, or $0.02 per share, for the same
period of fiscal 1999. EBITDA for the period increased to $4.6 million versus $1.2 million in the
first nine months of fiscal 1999.

Results for the third quarter and the first nine months of fiscal 2000 included the impact of
Landec's acquisition of Apio, Inc., which occurred on December 2, 1999. The results for the first
nine months of fiscal 1999 included licensing revenues of $750,000 received from Alcon
Laboratories for Landec's PORT(TM) device which were recorded in the first quarter of fiscal
1999.

"We are pleased with the company's solid growth in EBITDA, driven principally by growing
revenues and profitability from Apio's 'Eat Smart'(TM) line of specialty packaged whole and
fresh-cut produce,'' said Gary T. Steele, chairman and chief executive officer of Landec.

"Net income for the quarter was adversely impacted by lower than expected volumes and poor
yields in Apio's stonefruit business. The stonefruit business of peaches, nectarines and plums is
seasonal, with the vast majority of these revenues recognized in the company's third quarter.
Because of the disappointing results in Apio's stonefruit business, the company does not expect to
be profitable on a fiscal year basis until fiscal 2001,'' stated Mr. Steele.

"In addition to generating improved cash flow, we realized several important milestones in our
fresh produce packaging and seed coating businesses during the quarter,'' Steele noted.

"Our 12-ounce Eat Smart line of fresh-cut vegetables has achieved penetration in over 20 percent
of stores owned by the nation's top twenty-five retail chains since its introduction a year ago. We
have been realizing double-digit sales increases per quarter since the introduction of the 12- ounce product line a year ago. As a result of this success, we have recently introduced a two-pound package to the retail supermarket category,'' he noted.

Steele said that the company recently completed successful shipping trials utilizing its
Intellipac(TM) packaging technology with bananas -- the nation's leading produce sales item --
and that Landec could begin commercializing packaging for bananas within the next twelve
months.

The annual banana market is estimated to be in excess of $4 billion worldwide and represents
approximately nine percent of total produce department sales in the U.S. Based on recent shipping trials conducted by Landec, its proprietary packaging technology extended the life of bananas that had been ripened using conventional ripening processes. The company realized similar results in a trial with plantains.

"Based on our initial shipping trial results, our packaging technology could have a significant
impact on what is a substantial business,'' Steele added.

The company has also completed construction of a new seed coating facility in West Lebanon,
Indiana that will result in a tenfold increase in the company's coating capacity. The facility will
utilize a new continuous coating process for its Intelimer® polymer-based seed coatings. The
coatings regulate the water uptake of seeds and control the timing of seed germination. Landec
commercialized its first Intellicoat® seed coatings earlier this year.

"Our decision to expand the company's manufacturing capacity reflects our confidence in the
market opportunity for our technology. Based on customer response to our initial products and the results from field trials on new products, we are anticipating growing demand for Intellicoat
offerings next year,'' Steele said.

The company is currently conducting field trials for relay cropping of wheat and soybeans which
would enable farmers to produce two crops off the same field in one year, and an Early Plant(TM)
hybrid seed corn product which enables large farmers to extend the critical Spring planting
window. Early results have been very encouraging and final results of these trials will be known
within the next two months.

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
N2987