Press Releases

SALINAS, CA – September 1, 2005 – Monterey Gourmet Foods, Inc. (NASDAQ:PSTA) today announced an expansion into the frozen food category with its newest product line, “OneStep Gourmet” meals. This new product line, developed over the past eight months, provides a restaurant quality meal that is prepared in a skillet and is ready to eat in minutes. “OneStep Gourmet” meals have already been authorized in more than 140 club stores with additional expansion projected for the balance of the year.

President/CEO, Jim Williams stated, “We are very excited about entering the frozen food category. Monterey Gourmet Foods has been known for years as a leader in gourmet refrigerated foods, so expansion into the frozen food category is a natural for us. Our specially designed “OneStep Gourmet” bag contains everything today’s discerning consumer needs for a high quality, quick, and well balanced meal. Each meal contains a protein, vegetables, pasta and our innovative sauce cube that turns into a delicious sauce to complement the dish. These complete one-skillet meals go from freezer to table in minutes.”

Williams continued, “We are very proud of our Executive Chefs and New Products team who accepted the challenge of taking the company into a new product category. They developed and launched this totally new line in a relatively short period of time compared to the industry standards.”

“OneStep Gourmet” gourmet meals are available in three flavors; Grilled Chicken and Garlic Cheese Tortelloni in a Zesty Marinara Sauce; Chicken, Broccoli and Tortelloni in a Pesto Alfredo Sauce; and Shrimp and Garlic Cheese Tortelloni in a Lemon Alfredo Sauce.

Williams summarized, “As we reported during our 2005 Shareholder Meeting, one of our key strategies is an intensive new products program focused outside of our strong base of pasta and sauces. “OneStep Gourmet” is just the latest step in that direction, joining earlier initiatives that include the development of new product lines and strategic acquisitions. Monterey Gourmet Foods has introduced new products such as refrigerated entrees, grilled wraps and whole wheat pastas. The acquisitions of Casual Gourmet Foods and Sonoma Cheese Company earlier this year have allowed us to expand into the areas of award winning sausages, premium refrigerated soups and gourmet cheeses. Together, they represent our focus on diversified growth to minimize dependence on any one product category.”

Founded in 1987, Monterey Gourmet Foods now produces more than 100 different fresh gourmet food products for the premium food consumer that are distributed in more than 9,700 retail and club stores throughout the United States, selected regions of Canada, the Caribbean, Latin America and Asia Pacific. Monterey Gourmet Foods’ USDA-inspected fresh refrigerated gourmet food products are produced at facilities in Salinas, (Monterey County) California; Eugene, Oregon; and Seattle, Washington. For more information about Monterey Gourmet Foods, visit www.MontereyGourmetFoods.com.