Calavo Growers, Inc. Announces $5 Million Rights Offering; Proceeds Will Be Used to Repay Borrowings, Strengthen Liquidity.

Business Editors

SANTA ANA, Calif.--(BUSINESS WIRE)--July 31, 2002

Calavo Growers, Inc. (Nasdaq:CVGW), a global leader in the marketing of fresh and processed avocados, today announced that the United States Securities and Exchange Commission has declared effective its registration statement relating to the proposed distribution of subscription rights offering 1 million shares of the company's common stock at $5.00 per share.

Under the terms of the offering, which seeks to raise a total of $5 million, shareholders of record as of July 29, 2002, will receive, at no charge, non-transferable subscription rights based on the number of shares of common stock held on that date. Proceeds from the offering will be used to reduce borrowings under existing credit facilities.

Lee E. Cole, Calavo's chairman, president and chief executive officer, commented: "The rights offering is intended to enable Calavo to repay substantial portions borrowed under existing credit facilities and to further strengthen our already-solid financial condition. Furthermore, it enables current stockholders the opportunity to acquire additional shares in the company and avoid dilution of their ownership interests."

Cole indicated that the commencement of the rights offering is anticipated to begin as soon as practicable. Presently, the subscription period for exercise of rights is expected to end on Aug. 30, 2002. Rights certificates and complete information, including a prospectus, are being mailed to Calavo shareholders on Aug. 2, 2002.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities. Investors should rely only on the information contained in the forthcoming prospectus and in the documents accompanying the prospectus.

Headquartered in Santa Ana, Calif., Calavo Growers, Inc. is the leading marketer of fresh and processed avocados throughout the United States and in other locations around the world. Founded in 1924 as a member-owned cooperative association, the company today has approximately 1,670 shareholders and, throughout its history, has been an influential force in the development of the global avocado market. Calavo concentrates its operations in three business segments: California avocados; international avocados and other perishable food products; and processed food products.

Safe Harbor Statement

This news release contains statements relating to future events and results of Calavo (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of risks and uncertainties. These risks and uncertainties include but are not limited to: increased competition, conducting substantial amounts of business internationally, pricing pressures on agricultural products, adverse weather and growing conditions confronting avocado growers, new governmental regulations, as well as other risks and uncertainties detailed from time to time in the company's Securities and Exchange Commission filings, including, without limitation, the company's Report on Form 10-K for the year ended Oct. 31, 2001. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. This news release does not constitute an offer to sell any of Calavo's common stock or the solicitation of an offer to buy any of the common stock.