<SUBMISSION>
<ACCESSION-NUMBER>0001157523-08-006410
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20080805
<ITEMS>2.02
<ITEMS>9.01
<FILING-DATE>20080805
<DATE-OF-FILING-DATE-CHANGE>20080805
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>LANDEC CORP \CA\
<CIK>0001005286
<ASSIGNED-SIC>2821
<IRS-NUMBER>943025618
<STATE-OF-INCORPORATION>CA
<FISCAL-YEAR-END>0525
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-27446
<FILM-NUMBER>08992273
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3603 HAVEN AVE
<CITY>MENLO PARK
<STATE>CA
<ZIP>94025
<PHONE>6503061650
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3603 HAVEN AVE
<CITY>MENLO PARK
<STATE>CA
<ZIP>94025
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a5748921.htm
<DESCRIPTION>LANDEC CORPORATION 8-K
<TEXT>
<html>
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    <title></title>
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  <body style="font-size: 10pt; font-family: Times New Roman">
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 14pt"><b>UNITED
      STATES</b></font><b><font style="font-family: Times New Roman; font-size: 14pt"><br style="font-size: 14pt; font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 14pt">SECURITIES
      AND EXCHANGE COMMISSION</font></b><br><font style="font-family: Times New Roman; font-size: 10pt">WASHINGTON,
      D.C. 20549</font>
    </p>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 14pt"><b>FORM 8-K</b></font>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>CURRENT
      REPORT </b></font><br><font style="font-family: Times New Roman; font-size: 12pt">Pursuant
      to Section 13 or 15(d) of the</font><br><font style="font-family: Times New Roman; font-size: 12pt">Securities
      Exchange Act of 1934</font>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt">Date of
      Report (Date of earliest event reported): </font><font style="font-family: Times New Roman; font-size: 10pt"><b>August
      5, 2008</b></font><font style="font-family: Times New Roman; font-size: 10pt"><br style="font-size: 10pt; font-family: Times New Roman"></font>
    </p>
    <p style="text-align: center">
      <br>
      <font style="font-size: 14pt"><b>LANDEC CORPORATION</b></font><br><font style="font-family: Times New Roman; font-size: 10pt">(Exact
      name of registrant as specified in its charter)</font>
    </p>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <b>California<br></b>(State or other jurisdiction of incorporation or
      organization)
    </p>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center; width: 50%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>0-27446</b>
          </p>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center; width: 50%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>94-3025618</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission File Number)
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (IRS Employer Identification No.)
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>
      <b>3603 Haven Avenue, Menlo Park, California 94025<br></b>(Address of
      principal executive offices and zip code)<br>
    </p>
    <p style="text-align: center">
      <br>
      <b>(650) 306-1650</b><br><font style="font-size: 10pt; font-family: Times New Roman">Registrant&#8217;s
      telephone number, including area code</font><br><br><font style="font-size: 10pt; font-family: Times New Roman"><b>Not
      Applicable</b></font><br><font style="font-size: 10pt; font-family: Times New Roman">(Former
      Name or Former Address, if Changed Since Last Report)</font>
    </p>
    <p>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-size: 10pt; font-family: Arial Unicode MS">&#8414;</font>
      <font style="font-size: 10pt; font-family: Times New Roman">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman"><b>Item
      2.02. Results of Operations and Financial Condition.</b></font>
    </p>
    <p style="text-align: left">
      On August 5, 2008, Landec Corporation (the &#8220;Registrant&#8221;) issued a press
      release announcing its consolidated financial results for the fourth
      quarter and fiscal year 2008 ended May 25, 2008.&#160;&#160;The press release is
      attached hereto as Exhibit 99.1 and is incorporated herein by reference.
    </p>
    <p style="text-align: left">
      The information contained in this Form 8-K, including Exhibit 99.1
      attached hereto, shall be deemed &#8220;filed&#8221; for the purposes of the
      Securities Exchange Act of 1934, as amended, and shall be incorporated
      by reference into filings of the Registrant under the Securities Act of
      1933, as amended.
    </p>
    <p>

    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <font style="font-size: 10pt; font-family: Times New Roman"><b>Item
      9.01.&#160;Financial Statements and Exhibits.</b></font>
    </p>
    <p>
      (d) <b>Exhibit. </b><br>The following exhibit is furnished as part of
      this report:
    </p>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="width: 5%">
          &#160;
        </td>
        <td style="width: 12%">

        </td>
        <td style="width: 2%">
          &#160;
        </td>
        <td style="width: 81%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt; width: 12%" valign="bottom">
          <b>Exhibit Number</b>
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px; width: 2%" valign="bottom">

        </td>
        <td style="padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt; width: 81%" valign="bottom">
          <b>Description</b>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; width: 12%" valign="top">
          99.1
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 2%" valign="bottom">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 81%" valign="bottom">
          Registrant&#8217;s Press Release dated August 5, 2008
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: left">
      <font style="font-size: 10pt; font-family: Times New Roman"><b>SIGNATURE</b></font>
    </p>
    <p style="text-indent: 30.0px; font-size: 10pt">
      <font style="font-size: 10pt; font-family: Times New Roman">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="width: 5%">

        </td>
        <td colspan="2">
          &#160;
        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>LANDEC CORPORATION</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td colspan="2">

        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: left" valign="top">
          (Registrant)
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; width: 5%" valign="top">

        </td>
        <td style="width: 15%">

        </td>
        <td style="width: 30%">

        </td>
        <td style="width: 3%">

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px; width: 5%" valign="top">
          Date:
        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px; width: 15%" valign="top">
          August 5, 2008
        </td>
        <td style="width: 30%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px; width: 3%" valign="top">
          By:
        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Gregory S. Skinner
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 1%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 46%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Gregory S. Skinner
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 1%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 46%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Vice President of Finance and
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <u>EXHIBIT INDEX</u>
    </p>
    <p>

    </p>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 10pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: left; width: 12%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Exhibit No.</b></u>
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 2%" valign="top">
          &#160;
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 86%" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Description</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; width: 12%" valign="top">
          99.1
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 2%" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 86%" valign="top">
          Press Release dated August 5, 2008
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: left">

    </p>
  </body>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5748921ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 12pt"><b>Landec
      Corporation Reports Fourth Quarter and Fiscal Year 2008 Results
      Achieving Record Fiscal Year Revenues</b></font>
    </p>
    <p>
      MENLO PARK, Calif.--(BUSINESS WIRE)--Landec Corporation (Nasdaq:LNDC),
      today reported record revenues for fiscal year 2008. Revenues for fiscal
      year 2008 increased 13% to $238.5 million compared to revenues of $210.5
      million for fiscal year 2007. Net income for the fiscal year 2008
      increased 30% to $13.5 million or $0.50 per diluted share compared to
      net income of $10.4 million for fiscal year 2007, after excluding $18.8
      million of non-recurring operating income in fiscal year 2007, primarily
      due to the income from the sale of Fielder&#8217;s Choice Direct (&#8220;FCD&#8221;) to
      Monsanto Company (&#8220;Monsanto&#8221;) during the third quarter of fiscal year
      2007 net of operating losses at Landec Ag through the close date. The
      30% increase in net income was achieved despite incurring $1.5 million
      of non-recurring general and administrative expenses during the fourth
      quarter of fiscal year 2008. The reported net income for fiscal year
      2007, including the $18.8 million of non-recurring operating income, was
      $29.2 million or $1.07 per share. (See &#8220;Questions and Answers&#8221; below for
      information and a reconciliation of key fourth quarter and fiscal year
      2008 and 2007 results.)
    </p>
    <p>
      &#8220;We are very pleased with the progress we made during fiscal year 2008,&#8221;
      stated Gary Steele, Chairman and CEO of Landec. &#8220;Consistent with our
      goals for fiscal year 2008, we grew overall revenues 13% while overall
      gross profit increased 18% compared to fiscal year 2007, resulting in
      Landec generating $13.5 million of net income and $17.5 million of
      positive cash flow from operations. We ended the year with $59 million
      of cash and marketable securities.&#8221;
    </p>
    <p>
      &#8220;For fiscal year 2008, each of our businesses recorded increases in both
      revenues and gross profit,&#8221; said Steele. &#8220;Apio&#8217;s value-added vegetable
      business recorded an 8% growth in revenues compared to fiscal year 2007
      and the gross margin for fiscal year 2008 was 14.7% compared to 15.1%
      last year in spite of increased costs and competitive pressures. The
      much smaller and emerging Apio Packaging business reported a 95%
      increase in revenues and a 98% increase in gross profit. The Apio
      trading business revenues increased 22% during fiscal year 2008 compared
      to last year and generated a typical trading gross margin of 5.7%.
      Landec&#8217;s Technology Licensing business reported a 60% increase in
      revenues and a 67% increase in gross profit during fiscal year 2008
      compared to fiscal year 2007, due primarily to the Intellicoat license
      agreement with Monsanto signed in December 2006.&#8221;
    </p>
    <div style="margin-right: 0pt; text-indent: 0pt; margin-bottom: 10pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      The increase in continuing net income in fiscal year 2008 to $13.5
      million from $10.4 million in fiscal year 2007 was due to several
      factors, including: (1) a $1.2 million increase in gross profit in
      Apio&#8217;s value-added vegetable business primarily due to increased
      revenues, (2) a $1.6 million increase in gross profit in Apio Packaging
      due to an increase in revenues, (3) a $3.2 million increase in non-food
      licensing gross profit primarily due to the Intellicoat license
      agreement with Monsanto, and (4) a $503,000 increase in net interest
      income due to the cash received from the sale of FCD. These increases in
      net income were partially offset by a $2.5 million increase in operating
      expenses compared to last year that were primarily incurred during the
      fourth quarter and an increase in income taxes of $898,000 during fiscal
      year 2008 compared to last year.
    </p>
    <p>
      Revenues for the fourth quarter were $57.3 million versus revenues of
      $51.2 million for the fourth quarter of fiscal year 2007. The Company
      reported net income for the fourth quarter of $3.4 million or $0.13 per
      diluted share compared to net income of $4.4 million or $0.16 per
      diluted share for the fourth quarter of last year.
    </p>
    <p>
      The increase in revenues for the fourth quarter of fiscal year 2008
      compared to the same period last year was primarily due to (1) a $1.4
      million increase in revenues from Apio&#8217;s value-added specialty packaged
      vegetable products, (2) a $3.8 million increase in revenues from Apio&#8217;s
      commission trading business due to increased volume sales, and (3) a
      $796,000 increase in revenues from Apio Packaging.
    </p>
    <p>
      The decrease in net income for the fourth quarter of fiscal year 2008
      compared to the same period last year was due to a $1.6 million increase
      in general and administrative expenses primarily due to accounting and
      tax consulting expenses and a $780,000 decrease in value-added gross
      profit due primarily to the fourth quarter of fiscal year 2007 being an
      unusually good quarter for gross margins. These decreases were partially
      offset by a $771,000 increase in gross profit in Apio Packaging due to
      an increase in revenues and by a $901,000 decrease in income tax
      expenses.
    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Landec Fourth Quarter 2008 Earnings Conference Call</b>
    </p>
    <p>
      A conference call will follow this release at 8:00 a.m. Pacific Time on
      Wednesday, August 6, 2008 during which senior management of Landec will
      present an overview of results for the fourth quarter and fiscal year
      2008. Interested parties have the opportunity to listen to the
      conference call live on the Internet at <u>www.landec.com</u> on the
      Investor Relations web page. A replay of the webcast will be available
      for 30 days. Additionally investors can listen to the call by dialing
      (866) 238-0826 or (703) 639-1158 at least 5 minutes prior to the start.
      A replay of the call will be available through Wednesday, August 13,
      2008 by calling (888) 266-2081<b> </b>or<b> </b>(703) 925-2533, code
      #1262936.
    </p>
    <p>
      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&#8217;s
      temperature-activated polymer products are based on its proprietary
      Intelimer&#174; 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. For more information
      about the Company visit Landec&#8217;s website at <u>www.landec.com</u>.
    </p>
    <p>
      Except for the historical information contained herein, the matters
      discussed in this news release are forward-looking statements that
      involve certain risks and uncertainties that could cause actual results
      to differ materially. These risk factors are listed in the Company&#8217;s
      Form 10-K for the fiscal year ended May 27, 2007 (See item 1A: Risk
      Factors). As a result of these and other factors, the Company expects to
      continue to experience significant fluctuations in quarterly operating
      results and there can be no assurance that the Company will remain
      consistently profitable. The Company undertakes no obligation to update
      or revise any forward-looking statements whether as a result of new
      developments or otherwise.
    </p>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>LANDEC CORPORATION</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>CONSOLIDATED CONDENSED BALANCE SHEETS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i>(In thousands)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="8" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            May 25, 2008
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            May 27, 2007
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (unaudited)
          </p>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>ASSETS</b></u>
          </p>
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Current Assets:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Cash, cash equivalents and marketable securities
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          59,039
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          62,556
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Accounts receivable, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          19,871
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          18,185
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Inventories, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          7,329
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          6,800
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Notes and advances receivable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          501
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          282
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Deferred taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,180
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          &#8212;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Prepaid expenses and other current assets
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,746
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,316
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Total Current Assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          90,666
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          89,139
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Property and equipment, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          21,306
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          20,270
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Intangible assets, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          35,582
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          29,630
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Other assets
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          3,035
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          2,329
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          Total Assets
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          150,589
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          141,368
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>LIABILITIES AND SHAREHOLDERS' EQUITY</b></u>
          </p>
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Current Liabilities:
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Accounts payable
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          19,079
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          13,880
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Income taxes payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          185
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          458
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Accrued compensation
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,197
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          3,126
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Other accrued liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,930
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,340
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Deferred revenue
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          3,613
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          3,491
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Total Current Liabilities
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          28,004
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          22,295
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Deferred revenue
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          5,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          7,000
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Deferred taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,569
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          &#8212;
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Minority interest
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,550
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,845
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Shareholders' Equity
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left" valign="top">
          Common stock
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          112,974
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          122,278
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td style="padding-left: 15.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Retained earnings (deficit)
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,492
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (12,050
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Total Shareholders' Equity
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          114,466
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          110,228
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          Total Liabilities and Shareholders&#8217; Equity
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          150,589
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          141,368
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td colspan="19" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>LANDEC CORPORATION</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="19" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="19" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i>(In thousands, except per-share data)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="19" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i>(unaudited)</i>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="19">
          &#160;
        </td>
      </tr>
      <tr>
        <td>
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="7" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="top">
          Three Months Ended
        </td>
        <td>
          &#160;
        </td>
        <td colspan="7" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="top">
          Twelve Months Ended
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center" valign="top">
          May 25,
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center" valign="top">
          May 27,
        </td>
        <td>

        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center" valign="top">
          May 25,
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center" valign="top">
          May 27,
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="bottom">
          2008
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="bottom">
          2007
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="bottom">
          2008
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="bottom">
          2007
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left" valign="top">
          Revenues:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          Product sales
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          54,569
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          48,114
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          227,550
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          201,892
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          Services revenues
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          919
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,038
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          3,640
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          3,539
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          License fees
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,380
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,581
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          6,231
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,013
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Research, development, and royalty revenues
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          432
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          468
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,106
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,054
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Total revenues
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          57,300
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          51,201
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          238,527
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          210,498
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left" valign="top">
          Cost of revenue:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          Cost of product sales
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          46,899
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          40,968
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          197,288
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          175,252
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Cost of services revenues
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          750
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          770
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          3,011
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          2,860
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          Total cost of revenue
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          47,649
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          41,738
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          200,299
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          178,112
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left" valign="top">
          Gross profit
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          9,651
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          9,463
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          38,228
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          32,386
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left" valign="top">
          Operating costs and expenses:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          Research and development
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          840
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          786
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          3,251
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          3,074
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          Selling, general and administrative
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          6,193
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,607
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          19,801
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          21,616
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Income from sale of FCD
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#8212;
          </p>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#8212;
          </p>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#8212;
          </p>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (22,669
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Total operating costs and expenses
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          7,033
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          5,393
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          23,052
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          2,021
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left" valign="top">
          Operating income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,618
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,070
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          15,176
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          30,365
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left" valign="top">
          Interest income
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          304
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          870
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,219
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,945
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left" valign="top">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          (4
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          (3
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          (22
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          (251
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Other expense
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (90
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (159
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (477
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (414
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left" valign="top">
          Net income before taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,828
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,778
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          16,896
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          31,645
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          Income tax benefit (expense)
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          546
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (355
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (3,354
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (2,456
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          Net income
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          3,374
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          4,423
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          13,542
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          29,189
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          Diluted net income per share
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          0.13
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          0.16
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          0.50
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          1.07
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td colspan="3" style="padding-left: 0.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          Shares used in diluted per share computations
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          26,827
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          26,859
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          26,935
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          26,558
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td>

        </td>
        <td colspan="5" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>LANDEC CORPORATION</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="5" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>FISCAL YEAR ENDED MAY 25, 2008</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="5" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>QUESTIONS AND ANSWERS</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="5">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            1.
          </p>
        </td>
        <td colspan="5" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            What results account for the change in net income in fiscal year
            2008 compared to fiscal year 2007, taking into account the
            one-time non-recurring events in fiscal year 2007?
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="5">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>(In Thousands)</u>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Net income for fiscal year 2007</b></i>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>$</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>29,189</b></i>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Income from sale of FCD in fiscal year 2007</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>(22,669</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          <i><b>)</b></i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Non recurring losses of Landec Ag in FY 2007</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>5,814</b></i>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Insurance settlement in fiscal year 2007</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>(1,473</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          <i><b>)</b></i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Aesthetic Sciences milestone payment</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          <i><b>(481</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          <i><b>)</b></i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>Adjusted net income for fiscal year 2007</b></i>
          </p>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>10,380</b></i>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Changes in fiscal year 2008 net income relative to fiscal year
          2007:</b></i>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Increase in operating income at Apio</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>1,811</b></i>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Increase in Tech. Licensing operating income</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>2,852</b></i>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Increase in G&amp;A expenses at Corporate</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>(915</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          <i><b>)</b></i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Increase in net interest income</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>503</b></i>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Increase in income tax expense</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>(898</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          <i><b>)</b></i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Net other</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          <i><b>(191</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          <i><b>)</b></i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          <i><b>Net income for fiscal year 2008</b></i>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <i><b>$</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <i><b>13,542</b></i>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="5" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Excluding the non-recurring operating income recognized in
            fiscal year 2007, Landec&#8217;s net income increased 30% in fiscal year
            2008 compared to fiscal year 2007.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="5">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            2.
          </p>
        </td>
        <td colspan="5" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            What would Landec&#8217;s diluted EPS have been in fiscal year 2007
            based on the adjusted net income for fiscal year 2007 as outlined
            in Question #1 above?
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Diluted EPS as reported for fiscal year 2007</b></i>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>$</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>1.07</b></i>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Income from sale of FCD</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>(0.85</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          <i><b>)</b></i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Non-recurring losses of Landec Ag</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>0.22</b></i>
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Insurance settlement</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          <i><b>(0.06</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="bottom">
          <i><b>)</b></i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Aesthetic Sciences milestone payment</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          <i><b>(0.02</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          <i><b>)</b></i>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          <i><b>Adjusted diluted EPS for fiscal year 2007</b></i>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <i><b>$</b></i>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <i><b>0.36</b></i>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          3.
        </td>
        <td colspan="2" style="padding-left: 10.0px; text-align: left" valign="top">
          Why were operating expenses higher in the recent fourth quarter
          compared to the level of operating expenses in each of the first
          three quarters of fiscal year 2008?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>During the fourth quarter, we experienced the following
            non-recurring G&amp;A expenses:</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>1)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Accounting, legal and consulting fees associated with the
            transition from our previous independent registered public
            accounting firm, McGladrey &amp; Pullen LLP, including efforts spent
            on previously reported accounting questions raised by them.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2)</b>
          </p>
        </td>
        <td style="padding-left: 10.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Tax consulting fees associated with determining cumulative R&amp;D
            credits, cumulative export product sales tax deductions,
            cumulative option expense deductions and the FIN 48 reserve
            against our tax positions.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>3)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>A contractual expense related to our agreement with Air
            Products.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>These non-recurring G&amp;A expenses amounted to $1.5 million, or
            $0.05 per share, and were all recorded during the fourth quarter
            of fiscal year 2008.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          4.
        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          Why was the effective tax rate for fiscal year 2008 lower than the
          Company had estimated during the first three quarters of fiscal year
          2008?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>There were two primary drivers that reduced our tax expense
            which we could not have accurately estimated earlier in fiscal
            year 2008:</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>1)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>The final R&amp;D credits, the export related tax deductions and
            the reversal of our valuation allowance reduced our tax expense
            for fiscal year 2008 by approximately $1.3 million and the amount
            could not be determined until we had completed the tax work and
            the FIN 48 work concerning these items. This work was completed
            during our fourth quarter.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>As a result of the non-recurring G&amp;A expenses outlined in
            Question #3 above, and the sizable reduction in our interest
            income during our fourth quarter as a result of investing in high
            quality, lower-yielding instruments, our pre-tax income ended up
            being lower than we had been estimating throughout the year.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          5.
        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          What is the status of your accounting issues?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>We have reviewed the issues raised by our previous independent
            registered public accounting firm and we have confirmed in our own
            review, in reviews with Ernst &amp; Young LLP and in reviews with a
            nationally recognized third party expert that our accounting for
            the Monsanto transaction and the repurchase of subsidiary stock
            and options not owned by Landec is reasonable and in accordance
            with generally accepted accounting principles. Accordingly, we
            plan to complete the audit for our 2008 financials and file our
            Form 10-K with the SEC in a timely manner.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          6.
        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          What are the Company's expectations for fiscal year 2009?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Our goal is to grow revenues by 10% in fiscal year 2009 and
            grow pre-tax income 15% to 20% compared to fiscal year 2008.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Net income is projected to decrease 5% to 10% because our
            effective tax rate is projected to double from 20% in fiscal year
            2008 to 40% in fiscal year 2009. This increase in our effective
            tax rate will result in an increase in our book income tax expense
            of approximately $4.4 million to $4.8 million or $0.16 to $0.18
            per share in fiscal year 2009. However, because of substantial net
            operating losses and tax credits for cash tax purposes, we are
            estimating that Landec will only be paying 10% of our book income
            tax expense in cash for fiscal year 2009 resulting in the
            preservation of cash and a favorable impact on our cash balance.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>The revenue and pre-tax income goals include continued growth
            at Apio as well as significant advances that we expect in most, if
            not all, of our licensed partner arrangements with Monsanto,
            Chiquita, Seminis, Air Products, Nitta and Aesthetic Sciences.
            These goals could be adversely affected by a further downturn in
            the economy and corresponding consumer demand, as well as further
            increases in raw materials and fuel costs.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          7.
        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          What are the growth opportunities and challenges Landec will likely
          face in fiscal year 2009?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Landec's growth opportunities</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>a)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Increase Apio's value-added revenues by 10% from customer
            expansion and new product introductions while managing gross
            margins pressures.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>b)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Increase the sale of our BreatheWay(R) packaging by (i)
            continuing to work closely with Chiquita on bananas and avocados,
            and (ii) commercializing new uses of Apio's BreatheWay packaging
            technology with Chiquita or other partners.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>c)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Continue to work closely with Air Products to expand the use of
            our Intelimer(R) polymer technology in the personal care and
            catalyst fields.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>d)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Advance our Intellicoat(R) seed coating technology program with
            Monsanto in its newly formed Seed Treatment business.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>e)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Continue to explore further licensing and partnering
            collaborative agreements for our Intelimer temperature-activated
            polymer technology.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>f)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Begin our collaboration with Monsanto's Seminis Vegetable Seed
            business with the goal of identifying initial product targets,
            performing field trials and planning for initial commercial launch
            beginning in late fiscal year 2009.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>Landec's challenges and risks</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>a)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Raw material costs for produce, materials and freight are
            expected to increase in fiscal year 2009 compared to fiscal year
            2008 primarily due to increased energy costs which means we need
            to selectively increase prices where we can and continue to
            improve operating efficiencies in order to minimize the impact on
            gross margins.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>b)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Market share growth in our value-added vegetable business,
            particularly in our tray line, will continue to be difficult since
            we are the market share leader in vegetable trays. In addition,
            consumers may view tray purchases as more discretionary purchases
            during a slow economy.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>c)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Contractual minimums in our banana and avocado programs with
            Chiquita will decrease from $2.9 million in fiscal year 2008 to
            $2.2 million in fiscal year 2009. To exceed minimums in fiscal
            year 2009, we would need (i) the Chiquita-To-Go program for food
            service and Quick Serve Restaurants (&quot;QSR&quot;) customers to rapidly
            expand, (ii) the market trials for the retail grocery store
            program to be completed, and (iii) an initial commercial launch of
            the retail grocery store program to start by fiscal year end 2009.
            For planning purposes, we are assuming only minimums will be
            achieved in fiscal year 2009.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          8.
        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          Is Chiquita making progress with Landec's BreatheWay packaging
          program?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Yes. In January we were somewhat concerned after Chiquita
            announced a significant reorganization and layoff of personnel,
            some of whom were involved in our collaboration. Excellent people
            are now in place at Chiquita and are making our joint programs a
            high priority. Our program is progressing well on four fronts:</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>a)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>In the Chiquita-To-Go program, Chiquita bananas in our
            packaging are being sold to coffee chains, convenience stores and
            mini-mart gas stations. Chiquita is a major supplier of bananas to
            Starbucks who has recently begun to roll out its new Vivanno(TM)
            banana smoothie program throughout the United States. In addition,
            the Chiquita-To-Go program has been launched in three European
            countries.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>b)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>In the QSR arena, McDonald's has initiated regional market
            tests for banana products, including banana smoothies, using
            Chiquita(R) bananas delivered in Landec's BreatheWay packaging. We
            are quite enthusiastic about the expansion into QSRs and we will
            provide more information about this new expansion during fiscal
            year 2009.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>c)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Retail grocery store advanced trials are scheduled to begin
            this fall with the goal of measuring and testing consumer demand,
            price points, package size, configuration and merchandising
            approaches. This program is several quarters later than we had
            originally expected but is now progressing with high priority.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>d)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>In our avocado program with Chiquita, Chiquita is beginning to
            sell avocadoes packaged in our BreatheWay packaging technology to
            food service customers and Chiquita is developing a retail grocery
            store application for which trials should begin before the end of
            this calendar year.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          9.
        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          What are the longer-term revenue growth prospects for Apio's food
          business?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>We have concerns about the U.S. economy and rising consumer
            expenditures for non-food items. We believe these trends could
            adversely impact the growth of the fresh-cut vegetable category
            which has historically grown over 10% per year on average. Even
            with the economic pressures, we believe we have a 10% per year
            growth opportunity in our fresh-cut vegetable business by
            capturing new customers and expanding our BreatheWay technology to
            new markets and application areas.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Our longer-term growth plans for our food technology business
            include five major initiatives:</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>a)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Access unique produce with consumer traits that bring
            discernible differentiation in nutrition, taste, color, aroma
            and/or texture. We will do this through our new exclusive
            licensing arrangement announced in June with Monsanto Seminis, the
            world's largest vegetable seed trait developer and supplier. We
            expect initial field trials to begin this fall.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>b)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Expand the use of our BreatheWay technology internationally. We
            recently announced a new distribution agreement in June for our
            packaging technology for South America.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>c)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Develop and launch new, innovatively designed products such as
            those we are developing in our vegetable salad line.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>d)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Expand our BreatheWay technology in new markets in North
            America such as food service and delis. Our Apio food business now
            has these efforts underway using our BreatheWay packaging
            technology.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>e)</b>
          </p>
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Look for synergistic acquisition partners that can benefit from
            our BreatheWay technology and channels of distribution, as well as
            from our expertise in post harvest physiology, sourcing, and
            processing.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td colspan="2" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>In summary, we have a plan in place for continuing to
            profitably grow our specialty packaged fresh-cut value-added
            business.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          10.
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          What are Landec's corporate priorities for the next several years?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>We have five priorities: (1) continue to grow revenues, pre-tax
            profits and free cash flow, (2) extend the commercialization of
            our BreatheWay packaging programs in bananas, avocados and new
            applications, (3) provide strong technology support to our
            licensing corporate partners in launching new products, (4) seek
            synergistic acquisition opportunities that use our technology or
            expand our technology base, and (5) expand our Intelimer(R)
            polymer materials R&amp;D activities in order to develop new business
            opportunities.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          11.
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          What is happening in the Monsanto licensing program?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Until recently, Monsanto has purchased all of its seed
            treatments from outside suppliers. Monsanto announced several
            months ago that it has formed a new business called the Seed
            Treatment Business which will allow Monsanto to develop its seed
            treatment requirements internally. As a reminder, Monsanto has
            over a 30% market share in corn, soybeans and cotton and is also a
            major player in canola and vegetable seeds.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>The concept of seed treatments is to place an insecticide or
            fungicide directly onto the seed surface in order to protect the
            seed and the seedling as it emerges. It is our hope that Landec's
            Intellicoat seed coating technology can be an integral and
            proprietary part of Monsanto's commitment to building a major
            position in seed treatments worldwide by using Landec's seed
            coatings as a &quot;carrier&quot; of insecticides/fungicides which can be
            dispensed at the appropriate time based on time or soil
            temperature. We are excited about this program and in fiscal year
            2009 we will be focused on validating the use of Landec's coating
            technology for these applications.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          12.
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          What is happening with Air Products?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>The progress has been slow in the first two years, but momentum
            is now building as new product applications and formulations are
            emerging from the laboratory. Landec and Air Products have agreed
            to focus on two areas -- personal care and catalysts. Accordingly,
            Air Products and Landec have negotiated the return of two formerly
            licensed fields -- coatings and electronic material applications.
            We are hopeful that with Air Products we can continue to expand
            our relationships with key customers this year, such as L'Oreal in
            personal care and Akzo Nobel in catalysts.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          13.
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          What are your expectations for the Seminis collaboration?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>As part of the agreement, Apio and Seminis will work together
            to identify and develop unique varieties of broccoli and
            cauliflower for the North American market for use in Apio's
            proprietary value-added packaged bags and trays for retail grocery
            chains, club stores and the foodservice industry. The companies
            will focus on developing and commercializing broccoli and
            cauliflower varieties that possess unique, desirable consumer
            traits such as improved nutrition, flavor, color, texture, taste,
            and/or aroma to improve the value of these vegetable offerings in
            Apio's products.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Seminis will apply its expertise to breed broccoli and
            cauliflower qualities using proven techniques that improve the
            speed and accuracy of new and beneficial trait identification and
            selection. For its part, Apio will apply its expertise in
            sourcing, manufacturing, packaging and marketing of vegetable
            products to provide definition and guidance of market needs,
            packaging solutions and commercialization strategies for these
            novel consumer trait products. All products that reach
            commercialization will be packaged using Apio's proprietary
            Intelimer BreatheWay packaging. We believe this collaboration
            further supports our position in the marketplace as the technology
            and innovation leader in fresh-cut vegetable products.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          14.
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          What progress is Aesthetic Sciences making with the use of Landec's
          technology in dermal fillers?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Aesthetic Sciences is making good progress and has demonstrated
            safety in initial clinical studies for products in which Landec's
            polymer materials would be used as dermal fillers for the rapidly
            growing facial cosmetics market. Aesthetic Sciences plans to start
            human clinical trials next quarter for testing its dermal filler
            materials using Landec's polymer technology. Landec expects to
            benefit in the future from the agreement with Aesthetic Sciences
            by receiving royalties on the sale of products using Landec's
            technology as well as from being a 19.9% owner of Aesthetic
            Sciences' stock.</b>
          </p>
        </td>
      </tr>
      <tr>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          15.
        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          What is Landec doing in research outside of its partnership
          collaborations?
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left" valign="top">

        </td>
        <td style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>In addition to supporting our existing license partners, we are
            examining several areas to broaden applications for our Intelimer
            polymer technology. For example, we have been studying how our
            technology can selectively dispense (both large and small
            molecule) active ingredients either evenly over time or
            &quot;triggered&quot; by rapid release of active ingredients with changes in
            temperature, moisture and pH. We are filing numerous patent
            applications to extend our patent estate in this area. We believe
            there is a large formulation potential for this technology in the
            pharmaceutical industry which is looking for new ways to extend
            patent life for existing drugs and novel ways to deliver new
            drugs. In addition, with the return of the coatings and
            electronics fields of use for our technology from Air Products, we
            will be exploring potential uses for Intelimer polymers in these
            application areas as well.</b>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table style="font-family: Times New Roman; font-size: 8pt; margin-bottom: 10.0px; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            16.
          </p>
        </td>
        <td colspan="17" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            How do the pre-tax results by line of business for the three and
            twelve months ended May 25, 2008 compare with the same periods
            last year, <b>excluding</b> the fiscal year 2007 activity for
            Landec Ag through December 1, 2006 and <b>excluding</b> the
            non-recurring insurance settlement and milestone payment in fiscal
            year 2007 (see Question #1 above for the details)?
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="17">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="17" style="padding-left: 5.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>The results are as follows (unaudited and in thousands):</b></i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>Revenues:</b></i>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="top">
          <i><b>Three months ended 5/25/08</b></i>
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="top">
          <i><b>Three months ended 5/27/07</b></i>
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="top">
          <i><b>Twelve months</b></i>

          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>ended 5/25/08</b></i>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3" style="padding-left: 0.0px; text-align: center; border-bottom: solid black 1.0pt" valign="top">
          <i><b>Twelve months</b></i>

          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>ended 5/27/07</b></i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Apio Value Added(a)</b></i>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          42,270
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          40,847
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          167,817
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          $
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          154,744
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Apio Packaging (b)</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,174
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          378
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          3,377
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,730
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 30.0px; text-align: left" valign="top">
          <i><b>Technology Subtotal</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          43,444
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          41,225
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          171,194
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          156,474
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Apio Trading (c)</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          12,135
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          8,317
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          60,414
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          49,706
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Total Apio</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          55,579
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          49,542
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          231,608
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          206,180
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Tech. Licensing (d)</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,721
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,659
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          6,919
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          3,706
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Total Revenues</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          57,300
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          51,201
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          238,527
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          209,886
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Gross Profit:</b></i>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Apio Value Added</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          6,049
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          6,829
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          24,615
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          23,426
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Apio Packaging</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,129
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          358
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          3,245
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,639
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 30.0px; text-align: left" valign="top">
          <i><b>Technology Subtotal</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          7,178
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          7,187
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          27,860
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          25,065
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Apio Trading</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          752
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          617
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          3,449
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          3,187
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Total Apio</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          7,930
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          7,804
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          31,309
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          28,252
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Tech. Licensing</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,721
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,659
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          6,919
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          3,706
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 30.0px; text-align: left" valign="top">
          <i><b>Total Gross Profit</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          9,651
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          9,463
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          38,228
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          31,958
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>R&amp;D:</b></i>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Apio</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          343
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          361
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,251
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,169
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Tech. Licensing</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          497
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          425
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          2,000
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,639
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Total R&amp;D</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          840
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          786
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          3,251
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,808
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>S,G&amp;A:</b></i>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Apio</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          3,408
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          3,304
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          13,831
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          12,667
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Corporate</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          2,785
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,303
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          5,970
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          5,055
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Total S,G&amp;A</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          6,193
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,607
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          19,801
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          17,722
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Other (e):</b></i>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Apio</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          19
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          85
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          23
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          260
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Corporate</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          191
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          623
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,697
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          1,148
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left" valign="top">
          <i><b>Total Other</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          210
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          708
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,720
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,408
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Net Income (Loss) Before Taxes:</b></i>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Apio</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,198
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,224
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          16,250
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          14,676
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left" valign="top">
          <i><b>Tech. Licensing</b></i>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,224
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          1,234
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          4,919
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right" valign="bottom">
          2,067
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 25.0px; text-align: left; padding-bottom: 2.0px" valign="top">
          <i><b>Corporate</b></i>
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (2,594
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (680
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (4,273
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: solid black 1.0pt" valign="bottom">
          (3,907
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: left; border-bottom: solid black 1.0pt" valign="bottom">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td style="padding-left: 35.0px; text-align: left; padding-bottom: 4.0px" valign="top">
          <i><b>Net Income Before Taxes</b></i>
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            2,828
          </p>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            4,778
          </p>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            16,896
          </p>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            $
          </p>
        </td>
        <td style="padding-right: 0.0px; white-space: nowrap; padding-left: 0.0px; text-align: right; border-bottom: double black 2.25pt" valign="bottom">
          <p style="margin-top: 0px; margin-bottom: 0px">
            12,836
          </p>
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="17">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="17" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>a) Apio&#8217;s value-added business includes revenues and gross
            profit from Apio Cooling LP.</b></i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="17" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>b) Apio Packaging includes the BreatheWay trademark for
            banana packaging, packaging technology for other shelf life
            sensitive vegetables and fruit, plus other unique packaging
            solutions.</b></i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="17" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>c) Apio&#8217;s trading business includes its commission-based
            commodity export business and its commission-based domestic
            commodity buy/sell business.</b></i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="17" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>d) Included in Tech. Licensing are the Intellicoat license
            fees from Monsanto.</b></i>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="17" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <i><b>e) Included in Other are net interest income and
            non-operating income/(expense).</b></i>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-right: 0pt; margin-bottom: 10pt; text-indent: 0pt; margin-left: 0pt; width: 100%">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Non-GAAP Financial Information</b>
    </p>
    <p>
      This press release contains non-GAAP financial information relating to
      net income and EPS. Included in the Question and Answer section
      (Questions #1, #2, #3 and #16) of this release are reconciliations of
      these non-GAAP financial measures to the most directly comparable
      financial measure calculated in accordance with generally accepted
      accounting principles in the U.S. (GAAP).
    </p>
    <p>
      Management believes that these non-GAAP financial measures provide
      useful additional information to investors about current trends in the
      Company&#8217;s operations and are useful for period over period comparisons
      of operations. These non-GAAP financial measures should not be
      considered in isolation or as a substitute for the comparable GAAP
      measures. In addition, these non-GAAP measures may not be the same as
      similar measures provided by other companies due to potential
      differences in methods of calculation and items being excluded. They
      should only be read in connection with the Company&#8217;s condensed
      consolidated statements of earnings presented in accordance with GAAP.
    </p>
    <p>

    </p>
    <p>
      CONTACT:<br>Landec Corporation<br>Gregory S. Skinner, 650-261-3677<br>Vice
      President Finance and CFO<br>or<br>EAS &amp; Associates<br>Liz Saghi,
      805-967-0161
    </p>
    <p>

    </p>
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</SUBMISSION>
