Fantastic Foods, a wholly-owned subsidiary of Homegrown Natural Foods, Inc. (Homegrown) announced yesterday that it has entered into a strategic manufacturing relationship with Interpac Technologies (Interpac) of Sacramento, CA. Under terms of the agreement, Interpac will serve as the manufacturing supplier for Fantastic Foods products beginning November 7th. The company will assume the lease and acquire the production assets of Fantastic Foods' current manufacturing facility in Petaluma, CA, while retaining a majority of its employees.

According to John Foraker, Homegrown's co-founder and CEO, "Our strategic relationship with Interpac Technologies will allow Homegrown to focus resources on what it does best: develop, market, and sell high quality natural food products. Interpac will provide our customers with the quality that they expect from Fantastic Foods. We had many options for locating the manufacturing operation. The ability to improve our operating efficiences and keep our skilled and dedicated workforce in Sonoma County was a key consideration in this decision".

Interpac Technologies is a high quality co-packer for dry natural food products. The company's founder and President Rod Miner stated, "We look forward to building on Interpac Technologies' reputation in contract manufacturing. By combining technology with talented people, we've been able to achieve unsurpassed levels of quality and efficiency, while maintaining a focus on the quality of life and need for all people to work together for common goals." Interpac is expected to hire many of the key product supervisors, as well as a majority of the current Fantastic Foods production staff. Administrative functions will be consolidated into Homegrown's Napa corporate offices by the end of the year.

Homegrown Natural Foods, Inc. is the majority stakeholder in Annie's Homegrown of Wakefield, MA, and completed the purchase of both Fantastic Foods and Napa Valley Kitchens in early October, 2000. The company was founded in 1999 as a platform to purchase, consolidate and grow high quality, branded companies in the natural foods industry. Homegrown's subsidiaries develop, market and sell branded natural food products to specialty foods, natural foods, supermarkets, and club stores. For more information, please call 1.888.254.3711 or visit the Homegrown Natural Foods Web site at www.homegrownnaturalfoods.com.

Interpac Technologies, Inc., is a wholly owned subsidiary of the Portly William Group of San Francisco, California.