Monterey Pasta Company (Nasdaq:PSTA) has been chosen by Raley's of West Sacramento, CA, for distribution of five new items to 147 Raley's locations. The five items include Italian Meatball with Two Cheeses Calzone, Spinach with Feta Cheese Calzone, Scrambled Egg with Country Sausage and Two Cheeses Calzone, Six Italian Cheeses Stuffed Pizza and Italian Sausage and Pepperoni Stuffed Pizza.

The Monterey Pasta Sales Manager for the Raley's account is Joe Stirlacci of San Mateo, CA.

R. Lance Hewitt, President/CEO of Monterey Pasta said, "We are very pleased to announce this agreement with Raley's, which helps to implement our national distribution strategy on calzones and stuffed pizzas while further strengthening our presence in the West. Raley's is one of the signature grocers in California, and we are proud to be associated with them."

Now 147 stores strong, and growing, Raley's includes Bel Air Markets, a chain of 17 supermarkets in the greater Sacramento area, Food Source, a chain of 7 warehouse format stores, and Nob Hill Foods, a chain of 25 supermarkets in south San Jose, the Central Coast, and the greater Bay Area, and 98 superstores found in Northern California, Nevada and New Mexico. Raley's is headquartered in West Sacramento, CA.

Founded as a regional brand, Monterey Pasta now has national distribution in more than 5,800 retail and club stores throughout the United States and selected regions of Canada. Monterey Pasta manufactures USDA inspected, healthy, fresh gourmet refrigerated fresh pasta, sauces, pizzas, and soups at its integrated corporate headquarters / manufacturing facility in Salinas, (Monterey County) CA.

This press release contains forward-looking statements that involve a number of 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 the retention of key personnel and retention of key management, the risks inherent in food production, and intense competition in the market in which the Company competes. Future projections are based on the assumption that we will continue to sell in existing retail and club stores and will continue to add new stores. For additional information on these and other risks, please read the Company's Annual Report on Form 10-K for the year ended December 26, 1999, its Forms 10-Q for First Quarter 2000, Second Quarter 2000, and Third Quarter 2000, and its 2000 Proxy.