Menlo Park, California
July 10,  2001

Landec Corporation (Nasdaq: LNDC), a developer and marketer of technology-based polymer products for food, agricultural and licensed partner applications, announced today that Landec Ag, its wholly owned subsidiary for developing and marketing agricultural seed, is consolidating its Intellicoat(R) technology seed coating operations in Indiana.

The development of Intellicoat seed coatings has been successful this past year culminating with increased commercialization of the Pollinator Plus(TM) male inbred seed coating, expansion of farmer trials of the Relay Crop(TM) System for growing wheat and coated soybean seeds in the same field, and the pre-commercial introduction of its Early Plant(TM) hybrid seed corn coatings throughout the Corn Belt. Landec Ag introduced the hybrid seed corn coating technology through the Fielder's Choice Direct(R) brand of hybrid seed corn. Landec Ag has grown to become the 9th largest hybrid seed corn company in the U.S. through its unique business model of selling directly to the farmer through its Fielder's Choice Direct brand of uncoated, and now coated, corn seed.

With these significant technology milestones realized, Landec Ag is moving both the seed coating research and development and the Pollinator Plus coating production operations, to Oxford, Indiana where they will be operational in August 2001. The move to Oxford will accommodate production volume increases for Pollinator Plus coatings as needed.

Tom Crowley, President of Landec Ag, stated, "With the success of our extensive field testing over the last three years, and the very positive trial acceptance of our seed coating technologies by our customers this year, the time is right to move our seed coating research and manufacturing facilities closer to our customers in the Midwest. Our first commercial product, Pollinator Plus, is now being used by 31 seed companies in the United States and is being tested for the first time in Europe. The Landec coating on male inbred seeds has allowed seed producers to eliminate the need for double planting of the male seed and at the same time double the pollination window, which minimizes one of the biggest risks for seed companies in producing a crop of seed corn."

This year, Landec Ag introduced for the first time, its Intellicoat coating for Early Plant hybrid corn. Hybrid corn coated with Landec's Intelimer(R) polymer technology has been planted on approximately 3,000 acres of demonstration sites in 21 states. This coating enables farmers to plant hybrid seed corn two to four weeks earlier in the spring than normal without chilling injury to the seed. The ability to extend the planting window allows farmers to schedule and manage their capital and labor resources more effectively in the critical spring planting period.

Crowley said, "Over a wide geographic area and varying soil types and weather conditions, we have seen the Early Plant Hybrid coating technology effectively produce stand counts for hybrid corn that are equal to or better than stand counts of corn planted during the normal planting window. Good stand counts should translate into good yields, but we will not know that conclusively until yields are measured in the fall. We are encouraged by the first year's testing of this important technology that could bring great value to the farmer."

The Relay Crop System product consists of selling a combination of uncoated wheat seeds and Intellicoat coated soybean seeds to enable farmers to produce wheat and soybeans off the same fields in the same year in parts of the country where this was not previously possible. As a result, the farmer generates two incomes in one year -- one in July for wheat and one in October for soybeans -- resulting in higher profits and better cash flows for the farmer. For the typical soybean farmer, the field trial results represent a 20-30% increase in revenue per acre while for the typical wheat farmer the field trial results represent a 40-50% increase in revenue per acre. Expanded trials are underway this spring on 2,200 acres in eleven states, up from 900 acres last year, and the results will be available in the fall.

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
N3642