July 15, 2010, Vancouver – Landec Corporation , a polymer science company that develops and markets patented polymer products for food, agricultural, medical device and licensed partner applications, has announced its subsidiary, Apio Inc., has signed an exclusive licence agreement with Greenhouse Grown Foods Inc. (Windset Farms), a privately held produce company headquartered in Vancouver.

Apio Inc ., a wholly owned food subsidiary of Landec Corporation, has granted an exclusive licence for Windset to utilize Landec’s proprietary breathable packaging to extend the shelf life of specific greenhouse-grown vegetables, initially covering cucumbers and, following further successful trials, to include peppers and tomatoes, specifically, grape, roma and cherry type tomatoes.

Under the agreement, Apio will receive a one-time upfront research and development fee of $100,000 and ongoing license fees equal to three per cent of net revenue of the exclusive products utilizing the proprietary breathable packaging technology, with or without the BreatheWay® trademark. The ongoing license fees are subject to annual minimums of $150,000 for each of the three types of exclusive product as each is added to the exclusive agreement.

Windset will have the exclusive use of the Landec technology and BreatheWay trademark for use in the production, marketing, distribution and sale of the exclusive products in the United States and Canada within the exclusive licenced field. For its part, Apio will provide Windset with all necessary technical services and support regarding any future development of the technology. The initial term of the agreement for each exclusive product is for four years with automatic renewal of four-year terms for each exclusive product, unless specific products are terminated.

“We are pleased that Windset recognizes the unique properties of our packaging technology,” said Apio CEO Ron Midyett. “Windset has a recognized history of producing, marketing and distributing high quality greenhouse-grown vegetables and we look forward to working with them.”

Founded in 1996, Windset Farms has B.C. properties in Delta and Abbotsford, and in North Las Vegas, Nevada. It produces, grades, packages and distributes vegetables to customers throughout North America and is one of only two greenhouses in western North America with its own storage and distribution facility. It has the exclusive right to market 284 acres of greenhouse crops and has developed a tier-one customer list. To ensure its competitive advantage, Windset Farms has spent a significant amount of time researching the most advanced technologies for greenhouse growing, grading, packaging and distribution.

“We are excited about utilizing Landec’s technology to differentiate, and enhance, the quality of our vegetables for our customers and for their customers,” said Windset CEO Steve Newell. “This long-term exclusive license is part of our strategy to develop and expand our existing line of products and customer base. We believe that the combination of our production, marketing and distribution capabilities, along with the Landec technology and any further developments of the technology, will result in a profitable collaboration for both Windset and Landec/Apio.”

Windset Farms has grown to be one of the most advanced greenhouse operators in Canada and the largest vertically integrated operation in Western Canada. It is a privately held company.

Landec is a materials science company, leveraging its capability in polymer science and bio-application development in order to commercialize new products within a variety of life science fields, including food, agricultural, personal care and medical device applications. With its Intelimer® polymers, Landec is able to customize its proprietary polymer materials for each application through the manipulation of their unique controlled release, temperature activation and/or biocompatibility properties. Landec’s subsidiary, Apio Inc., has leveraged Landec’s BreatheWay® membrane to become a leader in U.S. fresh-cut specialty vegetables.

Landec Ag offers a full solution of seed coatings and enhancements that work with the latest genetic technologies to drive continuous improvements in crop yield.

Landec has also commercialized dozens of personal care and adhesive products through its long-standing partner relationships. With its recent acquisition of Lifecore Biomedical, Landec is now a leading supplier of premium hyaluronan-based biomaterials for the medical and veterinary markets, as well as the leading supplier to ophthalmology companies. For more information about the Company visit Landec’s web site at www.landec.com.