Landec Corporation (Nasdaq: LNDC) announced today that its wholly owned subsidiary, Apio, Inc., has introduced iceless broccoli crowns using Intellipac(TM) specialty packaging. The introduction of iceless broccoli crowns marks a milestone for the company as it is the first whole produce product being sold under the Eat Smart(TM) brand that utilizes Landec's Intellipac packaging technology. Supermarket sales of broccoli are approximately $800 million annually.

The company's Eat Smart iceless broccoli crowns are packed in eighteen-pound waxless cartons and shipped with 72 cartons per pallet as compared to iced broccoli which can only be shipped with 48-56 cartons per pallet. "The increased cartons per pallet with the Eat Smart iceless broccoli crowns will substantially increase freight efficiencies, which could translate into freight savings of up to 40%,'' according to Nick Tompkins, president of Apio.

In addition to reducing the cost of freight, the removal of ice from the distribution system offers
additional benefits. The company's new packaging system can decrease the potential for work-related accidents due to melted ice, reduce the risk of ice as a carrier of micro organisms that can potentially contaminate produce, and eliminate the need for expensive waxed cartons that cannot be recycled. "The elimination of ice and waxed cartons and the associated workers compensation liability in distribution centers and stores, coupled with increased freight efficiencies, should reduce the overall cost of distributing whole broccoli, thus increasing profits for the processor, supplier and retailer,'' added Tompkins.

Apio's iceless broccoli crowns are packed in case liners that use Intellipac breathable membrane
technology. Intellipac specialty packaging extends shelf life, maintains crispness, and reduces
discoloration and unpleasant odors and flavors associated with broccoli by creating an ideal modified atmosphere inside the package. The packaging technology has a very high rate of gas exchange, which results in the appropriate atmosphere for the broccoli within the bag.

A unique feature of Intellipac specialty packaging is its ability to compensate for temperature abuse. As a result of the temperature responsiveness of the Intellipac breathable membranes, the optimal atmosphere inside the case liner is maintained as temperatures change during the distribution process. "The ability to compensate for temperature abuse is especially important to delivering high quality broccoli when ice is eliminated from the pack,'' noted Tompkins.

Landec is the major supplier of modified atmosphere packaging for high respiring produce such as
broccoli, cauliflower and combinations of these vegetables. The company has developed numerous packages from twelve-ounce single meal portions, to three-pound packages, to complex party trays and now eighteen-pound case liners for the retail and foodservice industries.

Since 1996, Landec and Apio have commercially marketed products that use Landec's Intellipac
breathable membranes used for the Eat Smart fresh-cut produce line of products. The product line
includes broccoli florets, broccoli slaw, broccoli and carrots, broccoli and cauliflower, cauliflower
florets, vegetable medley and vegetable stir-fry. Intellipac packaging is also used on its 5.5 and 3.5 pound vegetable party trays. During 1999, Apio packed approximately 48 million pounds of fresh-cut vegetables utilizing Intellipac breathable packaging technology.

"The excellent market acceptance of our value added Eat Smart products demonstrates the unique advantages the Intellipac membranes create for fresh-cut produce,'' according to Tompkins. "We anticipate the same success with utilizing the Intellipac breathable packaging technology with whole produce like iceless broccoli crowns, as well as the development of more whole and fresh-cut products,'' he added.