Chiquita Brands International and Landec Corporation Announce
Joint Technology Development and Supply Agreement
Proprietary Packaging Technology Extends Banana Shelf-Life to Meet Consumer
Needs
CINCINNATI and MENLO PARK, Calif., Sept. 9 /PRNewswire-FirstCall/ -- Chiquita
Brands International, Inc. (NYSE:CQB) and Landec Corporation (NASDAQ:LNDC), a
developer and marketer of technology-based polymer products for food,
agricultural and licensed partner applications, announced today that Landec's
food subsidiary, Apio, Inc., has entered into a joint technology development
and supply agreement with Chiquita to provide Landec's patented Intelimer(R)
packaging technology for Chiquita bananas.
"This agreement is the culmination of several years of market trials to
successfully validate our proprietary Intelimer packaging technology with
bananas and its value in the marketplace," said Gary Steele, Landec's chairman
and chief executive officer. "We are pleased that Chiquita recognizes the
unique properties of our Intelimer technology and plans to use our packaging
technology to add value to its banana products globally." "We have been evaluating the Intelimer packaging technology for bananas for two
years and, based on the results, we believe this product will effectively
extend the shelf life of bananas, which offers a significant benefit to our
customers and consumers," said Fernando Aguirre, Chiquita's chairman and chief
executive officer.
Under the long-term agreement, Apio will supply Chiquita with its proprietary
Intelimer banana packaging technology on a worldwide basis for the ripening,
conservation and shelf-life extension of bananas in selective applications on
an exclusive basis and for other applications on a non- exclusive basis. In
addition, Apio will provide Chiquita with ongoing research and development,
process technology support for the Intelimer membranes and bags, and technical
service support throughout the customer chain in order to assist in the
development and market acceptance of the technology.
For its part, Chiquita will provide marketing, distribution and retail sales
support for Chiquita bananas sold worldwide in Intelimer packaging. To
maintain the exclusive license, Chiquita must meet minimum purchase thresholds
of Intelimer-based banana packages. Commercial shipments of Chiquita products
utilizing Landec's Intelimer packaging are scheduled to begin in early 2005.
Chiquita and Landec have also agreed to work together to exploit the Intelimer
packaging technology for other novel packaging applications using Chiquita
bananas.
In addition, the two companies entered into a stock purchase agreement, whereby
Landec will sell to Chiquita up to 500,000 shares of Landec common stock. The
actual number and purchase price of the shares to be sold will be determined by
an agreed formula based on the weighted average daily closing price of Landec's
stock over the next 20 trading days.
"This agreement is consistent with our stated goals to expand the use of our
proprietary technology and begin commercial sales of our Intelimer packaging
technology for bananas during the second half of fiscal year 2005," Steele
said. "This is a milestone for Landec's proprietary banana packaging program. We have invested considerable efforts over the past three years in developing a
variety of proprietary packaging products to extend the shelf life of bananas.
We are now positioned to capitalize on our investments in research and
development, manufacturing and market research for banana packaging technology
through this agreement." Landec Corporation designs, develops, manufactures and sells temperature-
activated and other specialty polymer products for a variety of food,
agricultural and licensed partner applications. Its temperature-activated
polymer products are based on its proprietary Intelimer polymers, which differ
from other polymers in that they can be customized to abruptly change their
physical characteristics when heated or cooled through a pre-set temperature
switch. Additional information is available at http://www.landec.com/ .
Chiquita Brands International, Inc. is a leading international marketer,
producer and distributor of high-quality bananas and other fresh produce, which
are sold primarily under Chiquita(R) premium brands and related trademarks.
The company is one of the largest banana producers in the world and a major
supplier of bananas in Europe and North America. The company also distributes
and markets fresh-cut fruit and other branded, value-added fruit products. Additional information is available at http://www.chiquita.com/ .
This press release contains certain statements that are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of Chiquita, including: the
impact of changes in the E.U. banana import regime as a result of the recent
enlargement of the European Union and the anticipated conversion to a
tariff-only regime not later than 2006; the outcome of the Department of
Justice investigation related to the company's recently sold Colombian
subsidiary; prices for Chiquita products; availability and costs of products
and raw materials; currency exchange rate fluctuations; natural disasters and
unusual weather conditions; operating efficiencies; labor relations; the
continuing availability of financing; the company's ability to realize its
announced cost-reduction goals; risks inherent in operating in foreign
countries, including government regulation, currency restrictions and other
restraints, burdensome taxes, expropriation, threats to employees, political
instability and terrorist activities, including extortion, and risks of U.S. and foreign governmental action in relation to the company; and other market
and competitive conditions.
Any forward-looking statements made in this press release speak as of the date
made and are not guarantees of future performance. Actual results or
developments may differ materially from the expectations expressed or implied
in the forward-looking statements, and the company undertakes no obligation to
update any such statements. Additional information on factors that could
influence Chiquita's financial results is included in its SEC filings,
including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. DATASOURCE: Chiquita Brands International, Inc.
CONTACT: Michael Mitchell of Chiquita, +1-513-784-8959, or ; or Gregory S. Skinner of Landec, +1-650-306-1650, or , or Liz Saghi, +1-805-687-2038, or , for Landec Web site: http://www.chiquita.com/ http://www.landec.com/
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