PRESS RELEASE
February 2, 2004
Monterey Pasta Company
1528 Moffett Street
Salinas, California 93905
(831) 753-6262
www.montereypasta.com
FOR IMMEDIATE RELEASE:
MONTEREY PASTA COMPANY UPDATES RETAIL DISTRIBUTION
* Retail customer discontinues private label program
* Company reports strong distribution gains in new CarbSmart line
* New line addresses today's hottest consumer trend
Salinas, CA, February 2, 2004 The Monterey Pasta Company ("The Company"), (NASDAQ:PSTA) announced today that the retail division of its second largest customer had discontinued its private label pasta and sauce program. The Company had been the supplier of both the pastas and the sauces for this program. Currently, the Company is in discussions with this customer to introduce Monterey Pasta's new reduced-carbohydrate CarbSmart product line in the near future.
Jim Williams, Monterey Pasta's President and CEO, commented, "Obviously, we are disappointed to lose the private label business from a customer of this size, however, moving customers to our branded products is more in keeping with our overall strategy of building the Monterey Pasta brand".
The Company also announced today that it had achieved further, significant gains in the distribution of its new CarbSmart line. Within the first 6 weeks of introduction, 15 new and existing retail chains representing over 2,500 stores authorized CarbSmart items - including leading chains such as Wegmans, Giant Eagle, Albertsons, King Soopers, Kroger, Raley's, Dominicks, Safeway, Fred Meyer and HEB.
In 2004, the rapid growth of CarbSmart has continued with the authorization of CarbSmart items in approximately 700 Kroger stores in the eastern and midwestern US, over 100 Fry's Food and Drug Stores in Arizona, more than 80 Dillon Food Stores in the south-central US, over 70 Price Chopper Supermarkets in the northeastern US, and more than 100 stores in the Cub Foods, Byerly's and Lunds chains in the Minneapolis, MN area.
According to Williams, the introduction of the new CarbSmart product line was well timed. "Without a doubt, reduced-carbohydrate products are the hottest trend in food today. By being the first and only reduced-carbohydrate fresh pasta in the marketplace, we believe we are positioned to benefit from this trend".
Founded as a regional brand, Monterey Pasta now has national distribution in over 9,000 retail and club stores throughout the United States and selected regions of Canada, the Caribbean, Latin America, and Asia Pacific. Monterey Pasta manufactures USDA inspected, fresh gourmet refrigerated food products at its integrated 133,000 square foot corporate headquarters, distribution, and manufacturing facilities in Salinas, (Monterey County) California, and its 19,000 square foot organic production facility in Eugene, Oregon. The Company recently announced the acquisition of an 80% interest in CIBO Naturals, LLC. in Seattle, Washington.
This press release contains forward-looking statements regarding our brand recognition, that involve uncertainties and risks that could cause actual results to differ materially from those discussed in the forward-looking statements. Risks that could cause actual results to differ materially from those discussed in the forward-looking statements, include risks associated with any reduction of sales to two major customers currently comprising a majority of total revenues, risks associated with timely and cost-effective introduction of new products in the coming months, risks associated with keeping new distribution, risks associated with accomplishing the anticipated results of the recently-completed plant expansion program, the risks inherent in food production, and intense competition in the market in which the Company competes. The Company undertakes no obligation to update or revise publicly, any forward looking statements whether as a result of new information, future events or otherwise. For additional information regarding the specific risks mentioned and other risks, please read the Company's Annual Report on Form 10-K, for the year ended December 29, 2002, Report of Material Event on Form 8-K filed February 26, 2003, May 8, 2003, and July 29, 2003, and October 31, 2003, its Quarterly Reports for First and Second and Third Quarters of 2003 on Form 10-Q filed on May 9, 2003, August 7, 2003 and November 6, 2003 respectively, and its Proxy Statement filed June 13, 2003.
