Good day, ladies and gentlemen, and welcome to the Landec Corporation nine months and third quarter of fiscal year 2008 earnings conference call. At this time all participants are in a listen-only mode. Later we’ll conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) And as a reminder, this conference call is being recorded. I would now like to introduce your host for today’s conference, Mr. Gary Steele, Chairman and Chief Executive Officer of Landec Corporation.

Good morning and welcome to Landec’s first nine months and third quarter of fiscal 2008 earnings call. I have with me today Greg Skinner, Landec’s Chief Financial Officer. This call is being webcast by Thompson/CCBN and can be accessed at Landec’s website at www.landec.com on the Investor Relations page. The webcast will be available for 30 days through May 10, 2008. A replay of the teleconference will be available for one week by calling 888-266-2081 or 703-925-2533. The access code for the replay is 1226274. During today’s call, we may make forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially. These risks are outlined in our filings with the Securities and Exchange Commission including the company’s Form 10-K for fiscal year 2007. Regarding recent events, we announced last week our need to delay our third quarter release in order to give our new accounting firm, McGladrey & Pullen, time to complete their review of the accounting relating to a few past transactions. McGladrey has received feedback from both the company and Ernst & Young, and while McGladrey continues to discuss the Monsanto transactions and the Apio sub option transaction with management and Ernst & Young. McGladrey has now completed its review of the company’s third quarter financial statements without any changes. There are some open issues that still remain with our new accounting firm regarding accounting interpretations and treatments. It is our hope that we can resolve any remaining issues by the time McGladrey completes its audit of the company’s financial statements for the fiscal year ended May 25, 2008. At this point, we cannot predict when and how these issues will be resolved. We are working diligently along with outside experts to reach resolution on these issues as quickly as possible and…

Thank you, Gary, and good morning everyone. As outlined in yesterday’s news release, Landec reported total revenues for the first nine months of fiscal year 2008 of $181.2 million versus revenues of $159.3 million for the same period a year ago. The increase in total revenues during the first nine months of fiscal year 2008 was due to: First, a 10% or $11.7 million increase in revenues from Apio’s value-added vegetable produce business; Second, a 17% or $6.9 million increase in revenues from Apio’s commission trading business; And third, a $2.5 million increase in license fee revenues primarily due to revenues from the Intellicoat license agreement with Monsanto. For the first nine months of fiscal year 2008, the company reported net income of $10.2 million or $0.38 per diluted share compared to net income of $24.8 million or $0.92 per diluted share for the same period a year ago. Included in net income for the first nine months of fiscal year 2007 was $18.8 million of non-reoccurring operating income, primarily from the gain on the sale of Fielder’s Choice Direct to Monsanto Corporation during the third quarter of fiscal year 2007. Landec’s net income for the first nine months of fiscal year 2008 increased to $10.2 million from $6 million during the first nine months of fiscal year 2007 after excluding the $18.8 million of non-reoccurring operating income from last year. This increase in net income during the first nine months of fiscal year 2008, compared to the same period last year after excluding the $18.8 million non-reoccurring operating income, was due to: First, a $2 million increase in gross profit in Apio’s value-added vegetable business, primarily due to increased volumes and revenues; Second, a $2.7 million increase in licensing gross profit as a result of the Intellicoat license agreement…

Thanks Greg. Our first nine months and third quarter results reflect the benefit of Landec’s focus on its two core businesses: the Apio food business and the technology licensing business. In the food business, the focus is on selling value-added specially packaged vegetable products and on selling BreatheWay packaging to key partners for high value perishable produce products such as fruit targets. In the technology licensing business the focus is on licensing and commercializing Landec’s patent polymer materials to keep polymers outside of the food applications such as our work with Monsanto and Air Products. During the first nine months of fiscal year 2008, we have benefited from: First, the normal weather patterns; Second, increased demand for our specially packaged fresh-cut food products; Third, our licensing arrangement with Monsanto; Fourth, increased interest income from cash received from the sale of Fielder’s Choice Direct to Monsanto in December of 2006; And fifth, the absence of losses from Landec Ag, which had historically occurred during the first eight months of each fiscal year. We have hit our internal goals for revenue and income and we are pleased that both our Apio foods technology business and our corporate licensing partnerships are growing and progressing. Let me review some highlights thus far in current fiscal year 2008. First, regarding Chiquita, the Chiquita-To-Go program has expanded to well over 15,000 sites in North America, up from 7,500 sites at the same time last year last year. Chiquita has also commercially launched Chiquita bananas and our packaging to three European countries. In addition, Chiquita has recently commenced quick serve restaurant store trials in several cities and retail grocery store product development efforts continue to advance. Further, under our new exclusive licensing agreement with Chiquita, using Landec’s BreatheWay packaging technology, market sales of avocados and food service…

Our first question is from Jonathan Lichter - Sidoti & Company.

I notice that it looked like there was a little bit more revenue in the Packaging area this quarter. I think you had mentioned on the last call that it was going to be split roughly evenly between the $2.7 million. What occurred there?

In a nutshell, it was our best estimate at the time at the end of the second quarter. And as it turns out, approximately $300,000 which we had expected to hit in the fourth quarter actually ended up being revenue in the third quarter.

So, what can we expect in the fourth quarter?

It would be the difference between the $2.9 million. I mean right now we are assuming we will achieve the minimums for the year, versus what we’ve recognized to date. Included in the Apio Packaging number is approximately $80,000 per quarter from the U.S. military. So you could quickly do the math based on those numbers.

Okay. And what’s your best guess as to when we could exceed the minimums from Chiquita?

That’s a tough one. Jonathan, we’re going to go into our planning and budgeting cycle for next year assuming we’re going to hit the minimums only for next year. And the reason is, we should be conservative because the next round of retail grocery store banana trials will not start until late summer, number one. Number two, the first quick serve restaurant chain store trials are just commencing as we speak. So, we don’t have any better estimates of what that tracking will be, the growth rates will be, what the store sales will be. So we’re just going to stay on the conservative side until these trials are completed and we have better numbers. So I would just put in the model, the minimums for next year.

Okay. Anything on the horizon for acquisitions?

Let’s just say that we’ve said in the past that we’re interested in acquisitions. We’re looking for those things that use our technology, are synergistic with our channels of distribution. Let me just say that we have identified several targets that meet our criteria, and so that tells you that you we’re still interested in acquisitions and that we’re making some progress. But I probably should stop there.

Thank you.

Our next question is from William Gibson - Nollenberger Capital.

Good morning. One area I want to zero in on and has to do with the expansion of the Chiquita agreement. You talked about the leadership team and retail stores, but what about shipping to the stores? Is Chiquita looking at using BreatheWay in the 40 lb boxes?

Interesting question. The answer is they are starting to. All of the attention, as you know, was initially going to what they’ve identified as 200,000 potentially alternative sites. That was the first program to validate and demonstrate the technology and their ability to deal with fairly challenging logistics, because you’re going to convenience stores and coffee chains, et cetera. And then they said they wanted to turn their attention, because it was relatively similar packaging design to quick serve restaurants and that’s where they’ve turned their attention next. In parallel, they’ve been working on the retail consumer package which would be a smaller package. But, recently the issue of how could the technology be used in the more traditional 40 lb boxes has reappeared. And there is interest in that and I would suspect that as we move through some of these other programs that will be on the drawing boards as well, Bill.

Okay. Just as an outsider looking at it, it seems to me that would sure be a faster rollout if they decided to go that route.

That’s a very good thought.

Sir, at this time I’m showing no further questions.

Okay. We thank everybody for their interest. We’ll keep you apprised of our progress, as well as the progress with the accounting issues and thank you very much for joining us on this call today. We appreciate it.