Monterey Pasta Company announced today that it has begun shipping its fresh refrigerated pastas, sauces and soups to Webvan in the Greater Atlanta Area.

Webvan Atlanta has ordered four varieties of Monterey’s soups, and four varieties of other Monterey Pasta Company products, for a total of 12 Monterey items. Webvan, which began service in the Greater Atlanta Area on May 1, delivers orders of any size within a 30-minute time of a customer’s choosing.

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Webvan launched its online marketplace in June 1999 in the San Francisco Bay Area. In addition to San Francisco and Atlanta, the company plans to enter four new markets by the end of 2000, including Chicago, Seattle, Baltimore, and Northern New Jersey.

“This extension of our relationship with Webvan to Atlanta very much affirms my belief that our companies share a similar demographic base. In other words, our customers are their customers,” said Lance Hewitt, President and Chief Executive Officer of Monterey Pasta. “We are delighted with this additional Webvan business and hope to be able to grow right along with them,” Hewitt said. Monterey Pasta’s Sales Manager for the new Webvan account is Rick Farmer of Carmel Valley, Calif.

Monterey Pasta products shipped to Webvan Atlanta: Homestyle-Fresh Soups including Tuscan Minestrone, Autumn Classic Butternut Squash, Southern Style Corn Chowder and Savory Split Pea with Ham. Restaurant Style label products include: Basil Cream Sauce, Artichoke Cheese with Ripe Olives Ravioli, Spinach Ricotta Ravioli, Chicken Rosemary Ravioli, and Potato Parmesan Gnocchi. Under Monterey’s traditional label Webvan will be receiving: Sun Dried Tomato Cream Sauce, Garlic and Basil Cheese Ravioli and Lobster Ravioli.

Founded as a regional brand, Monterey Pasta now has national distribution in over 4,900 retail and club stores throughout the United States and selected regions of Canada and part of Latin America. Monterey Pasta manufactures USDA inspected, healthy, fresh gourmet refrigerated fresh pasta, sauces and soups at an integrated corporate headquarters/manufacturing facility in Salinas, (Monterey County).

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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 the 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 regarding these and other risks, please read the Company’s Annual Report on Form 10-K, for the year ended Dec. 26, 1999, and its Form 10-Q for the quarter ended March 26, 2000.