Monterey Pasta Company (Nasdaq:PSTA) announced today it has gained initial distribution of its new lines of Fresh Stuffed Pizzas and Calzones in a number of Warehouse Club Divisions and retail grocery chains.

Costco Wholesale locations east of the Mississippi are selling one or more of the new Pizzas and Calzones in three divisions so far.

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Retail grocery chains selling to date are:

    Draegers
    Gelsons
    Andronico’s
    Mollie Stone
    Lunardi’s
    United Markets
    Vallergas

In addition, the products are also being offered by the on-line grocer, homegrocers.com. The Monterey Pasta Sales Manager for these retail accounts is Rick Farmer of Carmel Valley, Calif. Grocery chains accounting for over 200 additional stores have also accepted items in Monterey’s new Pizza and Calzone lines, with initial shipments expected in the next thirty to sixty days.

Early consumer sales results also appear quite promising. In locations that currently carry these new products, consumer takeaway of these items ranks in the top one-third or better of all Monterey Pasta products.

R. Lance Hewitt, president/CEO of Monterey Pasta, said, “We are very pleased by the early response from our club stores, grocery chains and individual consumers. Early indications are that the strategy of developing Fresh Stuffed Pizzas and Calzones to broaden our appeal to new grocery chains and an added set of consumers, appears to be working as planned.”

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Founded as a regional brand, Monterey Pasta now has national distribution in over 5,700 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 an integrated corporate headquarters/ manufacturing facility in Salinas (Monterey County), Calif.

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 statement, 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 Dec. 26, 1999, its Forms 10-Q for First Quarter 2000, second quarter 2000, and its 2000 Proxy.