Landec Corporation (Nasdaq: LNDC) announced today it is combining its seed coating and direct marketing seed businesses into a newly named subsidiary called Landec Ag, Inc.

As the agricultural business unit of Landec, Landec Ag will market, sell and distribute multiple branded product lines, including Fielder's Choice Direct® hybrid corn, Intellicoat® seed coatings and the newly launched Harvester(TM) product line.

"Landec Ag brings together Landec's Intellicoat polymer-based seed coating products with Fielder's Choice Direct's unique direct marketing system to better leverage our technology and increase market share for current and future product offerings,'' said Gary T. Steele, president and chief executive officer of Landec.

"Our first new initiative under this organization is the Harvestar product line, which offers high
performance alfalfa and nutrient enhanced hybrid seed corn through Landec Ag's dedicated team of forage experts and its direct marketing system. The Harvestar line will enable us to gain a greater share of our current customers' business, as well as broaden our customer base,'' Steele continued.

According to Tom Crowley, president of Landec Ag, "Harvestar's vision is to leverage our unique
eDC(TM) -- e-commerce, direct marketing and consultative selling-system to provide dairy farmers and livestock producers with 'better seed for better feed(TM)'. We have evaluated hundreds of corn hybrids and alfalfa varieties and compiled the information we need to assist our customers in selecting the best seed for their fields based on their growing conditions and feed requirements,'' he added.

The first Harvestar products will be alfalfa varieties that feature the latest genetics and growth
characteristics designed to provide good yields under a wide range of soil types, maturities and cultivation practices.

Landec Ag initiated commercial sales of its Intellicoat seed coating technology with an inbred seed corn product earlier this year. Intellicoat seed coatings utilize a unique temperature switch that controls seed germination by restricting the water uptake while protecting the seed in the soil. Today, 17 seed corn companies utilize these seed coatings to improve pollination and reduce planting costs and production risks.

Landec Ag also has several other new Intellicoat coated products that are currently under development. The company is field testing a wheat/soybean relay cropping system that enables farmers to harvest two crops in one season from the same field. Preliminary results from this program have been very positive and the company will report on final results later this fall.

Beginning next year, Landec Ag will begin advanced farm field trials of its Early Plant(TM) hybrid seed corn. Initial field trials demonstrated that hybrid seed corn with an Intellicoat coating could be planted approximately three weeks earlier than the normal planting date and produce comparable if not better yields.

Landec Ag also markets high quality seed corn under the Fielders Choice Direct brand name utilizing its eDC system. The company serves more than 20,000 customers, and is one of the country's ten largest seed companies.

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
N3067