Menlo Park, California
October 1, 2003

Landec Corporation (Nasdaq:LNDC), a developer and marketer of technology-based polymer products for food, agricultural and licensed partner applications, today reported results for the first quarter ended August 31, 2003. Unless otherwise noted, all financial statement amounts are stated on a basis consistent with accounting principles generally accepted in the United States ("GAAP basis").

Total revenues for the quarter were $41.8 million versus revenues of $44.8 million for the same period a year ago. The Company reported a net loss for the quarter of $624,000 or $0.03 per diluted share compared to a net loss of $608,000, or $0.04 per diluted share, for the same period last year.

The quarter results reflect the Company's decision to exit its domestic commodity vegetable business which culminated in the sale of that business in June 2003. In the first quarter ended August 31, 2003, revenues and gross profits from selling domestic commodity vegetable products were $1.6 million and $523,000, respectively, compared to $5.0 million and $891,000, respectively, for the same period last year.

"The results for the first quarter are in line with achieving our goals of continuing to grow Apio's technology-based specialty packaging produce business, while at the same time continuing to reduce Company-wide operating costs," commented Gary Steele, President and CEO of Landec. "The results are also in line with our guidance for fiscal year 2004, for which, reflecting our business seasonality, we expect that the first half of the year should show losses, and the second half and the full year are expected to be profitable."

"During the first quarter, sales of our value-added specialty packaging vegetable products grew to $22.3 million compared to $18.8 million in the same period last year," stated Steele. "Notably, our Eat Smart® 12-ounce specialty packaged retail product line grew 35% during the first quarter compared to the same period last year and our Eat Smart party tray product line nearly doubled compared to the same period last year. According to A.C. Nielsen, Apio became the number one supplier of vegetable party trays to retail grocery stores in the United States, capturing over 23% of the total vegetable party tray market. This was based on sales reported for retail grocery stores with average annual revenues over $2 million during the three months ended June 2003."

"The net loss for the quarter was comparable to the same period a year ago and reflects several offsetting increases and decreases. Items lowering the net loss include: (1) a $590,000 increase in gross profits from our value-added specialty packaging vegetable products as a result of increased sales and product mix changes, (2) an $897,000 Company-wide reduction in selling, general and administrative expenses and (3) a $160,000 reduction in interest expenses. These decreases in the net loss were offset by: (1) a $312,000 reduction in service revenue gross profits due primarily to the Company exiting its domestic commodity vegetable activities in June 2003, (2) planned increase in operating investments of $185,000 in our banana program and (3) expected decreases in licensing and research and development gross profits of $735,000. In addition, during the three months ended September 1, 2002, the Company sold its fruit processing facility and recognized a gain of $436,000, which is included in other income in the statements of operations," continued Steele.

"As announced during our conference call in June, we have entered into an exclusive packaging and marketing agreement with Dole Fresh Vegetables, Inc., for Apio to sell and distribute a line of fresh-cut produce under the Dole® brand in the United States. This agreement should expand Apio's presence in the fresh-cut vegetable category, through the sales and distribution of both the Dole brand and our existing Eat Smart brand. We are in the process of launching our Dole branded pre-cut vegetable products, and examples of the products and packaging designs will be displayed at the Produce Marketing Association (PMA) Fresh Summit Convention October 19-21, 2003," added Steele.

"For the banana technology program, our R&D and trial work is currently focused on retail market trials, which began last month, and on developing new package sizes for customers that will allow bananas to be sold in ways that are unique to the industry," stated Steele.

Commenting on the financial condition of the Company, Steele said, "During the first quarter ended August 31, 2003, we continued to pay down debt. We reduced our debt from $13.5 million at May 25, 2003 to $12.9 million at the end of the first quarter of fiscal year 2004. The cash increase of $671,000 during the quarter was primarily due to (a) net cash provided from operations of $1.2 million, and (b) a $657,000 reduction in restricted cash, partially offset by (a) the purchase of $689,000 of property, plant and equipment, and (b) the net reduction of debt of $606,000. As of August 31, 2003, we had availability under our lines of credit of $5.9 million. In addition, $1.7 million of restricted cash should become available for use within the next seven months as we pay off a capital lease and upon the release of funds held in escrow pursuant to the Dock Resins Stock Purchase Agreement. The significant decreases in accounts receivable and grower payables are directly attributable to the Company exiting the selling of domestic commodity vegetable products."

"We have four primary objectives for our fiscal year ending May 30, 2004: (1) continue to grow our food and ag technology revenues, (2) increase profits, (3) commercially launch our banana packaging technology for retail applications and, (4) continue to strengthen our balance sheet. Based on our first quarter results, we are on our way to achieving each of these goals," commented Steele.

"Landec's proprietary temperature-activated Intelimer® polymers solutions are patent protected and are changing the economics and the quality of the food and seed products we have targeted. In addition, our technology is opening up new solutions in the medical, consumer and industrial markets. We have numerous technology-driven applications in our pipeline and look forward to developing several new products during the upcoming year," concluded Steele.

Operating Highlights and Outlook

Apio's Intelimer Based Packaging Products Business Continues to Grow

During the last twelve months, Apio has introduced ten new value-added produce product offerings. In addition, Apio has expanded its retail and club store presence to nearly 9,900 stores, an increase of 1,200 stores during the same time period.

The success of Landec's Intelimer-based food packaging technology allows the Company to convert not only fresh-cut produce but also whole produce into value added products that bring real differentiation to retailers and to growers. As a result, Apio's Eat Smart products using our proprietary specialty packaging grew to 55% of Apio's revenues during the first quarter from 48% during the same period last year.

In addition, during the first quarter, Apio continued to grow its value-added business. The three fastest-growing product lines, which include party trays, iceless case liner products and 12-ounce retail packages, collectively grew nearly 50% compared to the same period of the prior year.

Landec Ag's Intellicoat® Seed Coating Product Sales Accelerate

Landec Ag, the Company's Intellicoat seed coating subsidiary, commercially launched its Early Plant(TM) hybrid corn during 2003. Early Plant hybrid corn joins the existing line-up of Landec Ag commercial products which include Pollinator Plus® coatings for inbred corn seed, Relay(TM) Intercropping of wheat and Intellicoat coated soybean, Fielder's Choice Direct® hybrid corn and the Harvestar(TM) product line, introduced in 2000, which offers high performance alfalfa and nutrient enhanced hybrid corn seed.

Early Plant hybrid corn is designed to allow corn farmers to safely and reliably plant hybrid corn three to four weeks earlier than normal, by using Landec Ag's proprietary Intellicoat coating which prevents germination until the soil reaches the optimal soil germination temperature. Otherwise, planting earlier in cold, wet soil could cause poor or no germination to occur. Allowing the farmer to have a wider planting window lowers costs, reduces risks associated with late planting and potentially increases yields across the entire farming operation. The program for Early Plant hybrid corn increased three-fold to over 40,000 acres in the spring of 2003 from 13,000 acres in 2002, and early indications are that the acres to be planted in the spring of 2004 could more than double the acres planted in 2003.

In 2002 Early Plant corn trials, when comparing Intellicoat coated corn seeds to uncoated corn seeds, the Intellicoat coated seeds showed better, more uniform emergence and higher stand counts for improved yield potential. In 2003, Landec Ag commercially launched its Intellicoat Early Plant corn seed coating technology using Fielder's Choice Direct brand of hybrid seed corn and using brands of two regional seed companies. In addition, 34 U.S. seed companies are conducting separate evaluations of the Intellicoat Early Plant hybrid corn technology on their own hybrids during 2003, up from eight seed companies conducting similar trials last year.

Landec Ag's first Intellicoat-based commercial product is called Pollinator Plus. Pollinator Plus seed coatings are applied to inbred seed corn to delay seed germination and extend the pollination window thus reducing risks and increasing yields for seed companies. Pollinator Plus is already being used by 30 major seed companies in the production of hybrid seed corn. This product line has been planted on over 60,000 acres in 2003 which is comparable to 2002. In addition, Landec Ag has entered into a joint licensing agreement with Incotec International BV, a recognized world leader in seed coating enhancement technologies, that will make Pollinator Plus coatings available to the European Union market starting this fiscal year.

Landec Ag, headquartered in Monticello, Indiana, combines its proprietary Intellicoat seed coating technology products with its unique electronic, direct marketing and consultative selling approach - eDC(TM), which is supported by its sophisticated telephonic and electronic call center.

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.