Landec Restates First Quarter Fiscal Year 2013 Financial Statements Increasing Net Income Due to Change in Quarterly Recognition

Landec Restates First Quarter Fiscal Year 2013 Financial Statements Increasing
Net Income Due to Change in Quarterly Recognition of the Fair Value of Windset

MENLO PARK, Calif., Jan. 2, 2013 (GLOBE NEWSWIRE) -- Landec Corporation
(Nasdaq:LNDC), today reported that the Company has restated its financial
statements for the first quarter of fiscal year 2013 to reflect a $2.9 million
increase in the previously reportedfirst quarter fiscal year 2013fair market
value of Windset Holdings 2010 Ltd. ("Windset").

In December 2012, during the second quarter review of the most recently
updated fair market value appraisal of our minority equity investment in
Windset for fiscal year 2013, the Company became aware that it had
miscalculated the fair market value of Windset at the end of its first quarter
of fiscal year 2013.This miscalculation has no impact on our projected annual
fair market value of Windset which has been independently valued.As a result,
in the first fiscal quarter ended August 26, 2012, the Company understated the
recorded value of its Windset investment, and the related investment income,
by $2.9 million, and understated its net income by $1.8 million, or $0.07 per
share.Therefore, the Company has today filed with the Securities and Exchange
Commission an amendment to its Form 10-Q for the first quarter of fiscal year
2013 which contains its restated financial statements for that period.The
restated financial statements for the first quarter of fiscal year 2013
reflect that the fair market value of its Windset investment has been
increased by $2.9 million and net income by $1.8 million, net of related
income taxes of $1.1 million.As a result, earnings per share for the first
quarter of fiscal year 2013 have increased to $0.17 per share from the
previously reported $0.10 per share.

Gary Steele, Landec's Chairman and CEO, commented, "As reported today in the
Second Quarter and First Half Fiscal Year Earnings Release for fiscal year
2013, Landec's share of the increase in Windset's fair market value for fiscal
year 2013 is projected to be $6.5 million, up from $5.8 million recognized in
fiscal year 2012, and up from $6.0 million previously estimated by Landec for
fiscal year 2013 before the new appraisal was completed by our outside
independent appraiser.It was determined during the second quarter review of
the appraisal that the Company incorrectly recorded the fair market value of
Windset at the end of its first quarter of fiscal year 2013. As a result, $2.9
million of the annual fair market value that the Company had originally
planned to record in its second and third fiscal quarters should have been
recorded during its first fiscal quarter of fiscal year 2013.The Company has
updated its policies and controls surrounding its accounting for the change in
the fair market value of Windset to ensure that in the future such changes are
recorded properly each quarter."

Landec Corporation is a materials science company that leverages its
proprietary polymer technologies, application development and innovation
capabilities to develop and commercialize new products in food and
biomaterials markets. Landec's subsidiary, Apio, has become the leader in US
fresh-cut specialty packaged vegetables sold in North America based on
combining Landec's proprietary food packaging technology and the strength of
two major national brands, Eat Smart and GreenLine, with the capabilities of a
large national food supplier, processor and distributor. Through its
subsidiary, Lifecore Biomedical, Landec is a premium supplier of
hyaluronan-based materials and medical products to ophthalmic, orthopedic and
veterinary markets worldwide.In addition, Landec will periodically work with
market-leading companies to develop and commercialize differentiated
polymer-based products.For more information about the Company, visit Landec's
website at

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,
including such factors among others, as the timing and expenses associated
with operations, the ability of the Company to implement any required changes
to its internal controls over financial reporting, the ability to achieve
acceptance of the Company's new products in the market place, the severity of
the current economic slowdown, the ability to integrate GreenLine's operations
into the Company, weather conditions that can affect the supply and price of
produce, the amount and timing of research and development funding and license
fees from the Company's collaborative partners, the timing of regulatory
approvals, the mix between domestic and international sales, and the risk
factors listed in the Company's Form 10-K for the fiscal year ended May 27,
2012 (See item 1A: Risk Factors) which may be updated in Part II.Item 1A Risk
Factors in the Company's Quarterly Reports on Form 10-Q.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.

CONTACT: At the Company:
         Gregory S. Skinner
         Vice President Finance and CFO
         (650) 261-3677

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