Press Releases

MONTEREY PASTA COMPANY BECOMES MONTEREY GOURMET FOODS
•Change reflects Company’s strategic direction and internal focus
•Company positioned to become leading national provider of refrigerated, gourmet food products
•Flagship pasta and sauce lines to continue under Monterey Pasta brand

SALINAS, CA (October 27, 2004) – Monterey Pasta Company (NASDAQ: PSTA) announced today that it has changed its name to Monterey Gourmet Foods, Inc. The Company’s shareholders approved this change at its July 29, 2004 annual shareholder meeting as an important step towards accelerating the Company’s future growth. The Company’s stock will continue to trade under the ticker symbol “PSTA”, and its flagship pasta and sauce lines will continue to be sold under the Monterey Pasta Company brand name. The new Monterey Gourmet Foods logos can be viewed on the Company’s websites, www.montereypasta.com or www.montereygourmetfoods.com.

“We’ve changed our company name to more accurately define our strategic direction”, states Jim Williams, Monterey Gourmet Foods President and Chief Executive Officer. “The name change also announces to the investor community, our customers and consumers that we are now more than just a pasta company.”

In 2004 the Company has successfully launched two new product lines outside its core pasta/sauce business, including Gourmet Refrigerated Entrees, such as Seafood Lasagna and Pasta Primavera, and Grilled Wrap Sandwiches, featuring a Garlic Chicken Wrap and a Chicken Ranchero Burrito. Over the past two years, the Company also completed two acquisitions outside its pasta business: Emerald Valley Kitchen (September, 2002) that manufactures organic dips and salsas, and CIBO Naturals (January, 2004), a maker of sauces, dips and spreads.

Mr. Williams further states, “The gourmet food segment is growing rapidly as time-starved consumers seek high quality quick-meal solutions and Monterey Gourmet Foods, with our staff of senior chefs and flexible manufacturing facilities, is positioned to bring new innovative products to these consumers.”

This press release contains forward-looking statements concerning the effect of Monterey Gourmet Foods’ corporate acquisitions and product innovations on projected sales for future periods, including without limitation statements, such terms as “step towards”, “future growth”, “strategic direction”, “growing rapidly”, and “positioned”. These forward-looking statements are based on currently available competitive, financial and economic data and management’s views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Consequently, the Company wishes to caution readers not to place undue reliance on any forward-looking statements. Among the factors that could cause Monterey Gourmet Food’s actual results to differ from such forward-looking statements are the following: (i) the process associated with the integrations of CIBO Naturals’ operations, processes, and products, (ii) a significant reduction of sales to two major customers currently comprising a majority of total revenues, (iii) the retention of newly acquired customers including achieving volume projections for these new customers, (iv) the Company’s ability to achieve improved production efficiencies in connection with the introduction of its new packaging and new items, (v) the timely and cost-effective introduction of new products in the coming months, (vi) the utilization of the recently-completed plant expansion and the increased fixed costs associated with increased plant capacity, (vii) retention of key personnel and retention of key management, (viii) the risks inherent in food production, (ix) intense competition in the market in which the Company competes and (x) Monterey Gourmet Food’s ability to source competitively priced raw materials to achieve historical operating margins. In addition, the Company’s results may also be affected by general factors, such as economic conditions, political developments, interest and inflation rates, accounting standards, taxes, and laws and regulations in markets where the Company competes.The Company has provided additional information regarding risks associated with the business in the Company’s Annual Report on Form 10-K for fiscal 2003, and its Reports of Material Event on Forms 8-K filed February 5, 2004, February 10, 2004, April 12, 2004, May 3, 2004 and its Proxy Statement filed June 21, 2004. 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. Monterey Gourmet Foods manufactures USDA inspected, fresh gourmet refrigerated food products at its integrated 143,000 square foot corporate headquarters, distribution, and manufacturing facilities in Salinas, (Monterey County) California, its organic food production facility in Eugene, Oregon and its newly acquired facility in Seattle, Washington. Monterey Gourmet Foods has national distribution of its products in over 9,500 retail and club stores throughout the United States and selected regions of Canada, the Caribbean, Latin America, and Asia Pacific.