Landec and Chiquita Expand Current Banana Licensing Agreement and Enter into New Avocado License Agreement

Business Wire, Sept 25, 2007

MENLO PARK, Calif. -- Landec Corporation (Nasdaq: LNDC), a developer and marketer of technology-based polymer products for food, agricultural and licensed partner applications, and Chiquita Brands International, Inc. (NYSE: CQB) announced today that Landec's food subsidiary, Apio, Inc., has expanded its joint technology license and supply agreement with Chiquita, initially entered into in September 2004, providing Chiquita use of Landec's patented BreatheWay([R]) packaging technology for Chiquita bananas. The expanded agreement includes additional exclusive fields for bananas. Further, as part of this agreement, Landec and Chiquita have entered into a new exclusive license using Landec's BreatheWay packaging technology for avocados.

"This expanded agreement covers additional exclusive fields for bananas which are strategically important to Chiquita, and new applications for packaging and selling avocados, resulting in expanded market opportunities for both Chiquita and Landec's BreatheWay packaging technology. Under this agreement, in exchange for expanding the exclusive license fields for bananas and adding an exclusive license for avocados, the minimum gross profit amounts to Landec from the purchase of BreatheWay packaging by Chiquita will increase a total of $2.1 million over Landec's next two fiscal years to $2.9 million in fiscal year 2008 and to $2.2 million in fiscal year 2009. Both Landec and Chiquita currently expect that the purchases of BreatheWay packaging by Chiquita in Landec's fiscal year 2009 will exceed the minimum purchase level of $2.2 million and will continue to increase appreciably in subsequent years," stated Gary Steele, Landec's Chairman and Chief Executive Officer. "We are pleased that Chiquita recognizes the unique properties of Landec's Intelimer[R] BreatheWay packaging technology with plans to use our packaging technology as a key enabler in their strategy to bring innovative, value-added products to market."

"Landec's BreatheWay technology has enabled us to deliver significantly longer shelf life to expand distribution and meet consumers' needs for perfectly ripe Chiquita bananas all the time, with popular products such as single Chiquita to Go[TM] bananas," said Bob Kistinger, president and chief operating officer, Chiquita Fresh Group. "We're excited to expand our relationship with Landec for bananas and obtain an exclusive license to Landec technology for avocados. BreatheWay technology will allow us to offer high-quality, ripe-and-ready avocados with extended shelf life, which fits our strategy to deliver innovative, higher-margin products that meet the needs of customers and consumers for fresh, healthy, convenient foods."

Under the expanded long-term agreement, Landec will continue to supply Chiquita with its proprietary BreatheWay packaging technology for the ripening, conservation and shelf-life extension of bananas, and now avocados, on a worldwide basis and for certain applications on an exclusive basis. In addition, Landec will provide Chiquita with ongoing research and development, process technology support for the BreatheWay membranes and packages, and technical service support throughout the customer chain in order to assist in the development and market acceptance of the technology.

For its part, Chiquita will provide marketing, distribution and retail sales support for Chiquita bananas and avocados sold worldwide in BreatheWay packaging. To maintain the exclusive license, Chiquita must meet new increased minimum purchase thresholds of BreatheWay packages starting in Landec's current fiscal year.

Steele commented, "This is an important milestone for both Landec and Chiquita to continue to advance and take advantage of our joint progress and momentum in building and delivering unique value-added products where we extend shelf life and deliver higher quality products to the consumer. We believe Chiquita has the best recognized brand worldwide for fresh fruit combined with exceptional technical, logistics, sourcing and marketing capabilities. We have worked well together as partners since 2004 and it was a logical step for us to expand our relationship."

"This agreement is consistent with our stated goals for fiscal year 2008 and beyond to expand the use of our proprietary technology for perishable fruit applications," Steele said. "Landec and Chiquita have invested considerable efforts over the past three years in developing a variety of proprietary packaging products to extend the shelf life of bananas, and we are jointly developing BreatheWay packaging for avocado products as Landec's first fruit application beyond bananas."

Landec's patented BreatheWay food packaging technology regulates the levels of oxygen and carbon dioxide within a package to maintain the optimum atmosphere in order to extend the shelf life of produce. The versatility of the BreatheWay food packaging technology extends the shelf life of fresh-cut vegetables up to 17-20 days and extends the shelf life of bananas by 7 days.