Calavo Growers, Inc. Board Approves Plan to Strengthen Processed Product Unit, Expand California Packing Operations.

Business Editors

SANTA ANA, Calif.--(BUSINESS WIRE)--Feb. 18, 2003

Restructured Processed-Avocado Operation Improves Cost Structure,

Cuts Duplicative Overhead; Expanded Fresh Packing Facility

Accommodates Introduction of ProRipe(TM) Program and Future Growth

Calavo Growers, Inc. (Nasdaq:CVGW), a worldwide leader in packing and distributing avocado, processed avocado and other perishable food products, today announced that its Board of Directors approved a two-pronged initiative of capital investment and expansion in core business units. Implemented in tandem, these actions are expected to reduce costs, enhance efficiencies and eliminate redundancies in the company's processed product business, while providing the infrastructure to propel future growth of Calavo's California fresh avocado operations.

Under the plan, the company will relocate its existing processed products operations in Santa Paula, Calif. and Mexicali, Baja California Norte, Mexico, to a single, newly acquired 90,000-square-foot facility in Uruapan, Michoacan, Mexico. Since 1998, Calavo has operated a fresh-avocado operation in Uruapan, where the company currently packs and distributes nearly one-third of Mexico's entire annual harvest for export.

In connection with these plans, which the company anticipates completing within six to nine months, Calavo said that it expects to incur certain as-yet-undetermined charges related to the consolidation and relocation of facilities.

"The cost savings that Calavo achieves from consolidating our processed operations into a single location are substantial and best positions Calavo to aggressively execute our growth strategy," said company Chairman, President and Chief Executive Officer Lee Cole. "The ultimate benefits to the company far outweigh the near-term effect of a comparatively modest charge. In addition to improving the processed-product cost structure by sharply decreasing transportation expense and eliminating redundant overhead, we enhance the operation's flexibility and increase quality of our offerings to the segment's customer base."

Calavo also announced that, upon relocation of the Santa Paula processed operation, it plans to convert the vacated facility and expand avocado packing operations there to accommodate growing space requirements that will accelerate development of ProRipe(TM), the company's fresh ripening program. The ProRipe system, which the company is installing at its two California packing facilities as well as at four distribution centers around the U.S., is intended as a boon to consumer demand by delivering to grocers avocados that are ready to purchase and eat.

"The successful implementation of ProRipe is a key component of our stated strategy to increase domestic consumption of fresh avocados," stated Cole. "Doing so, in turn, benefits and strengthens the California avocado industry, which continues to represent the backbone of our business.

"These initiatives offer truly positive implications for Calavo: we significantly reduce the cost structure of the processed-product unit, gain much-needed space to implement ProRipe and provide critical future capacity for California avocado packing operations, a key profit engine for our company," he concluded.

About Calavo

Calavo Growers, Inc. engages in the procurement and marketing of avocados and other perishable foods and the preparation and distribution of processed avocado products. Calavo's expertise in marketing and distributing avocado, processed avocado, and other perishable foods allows the company to deliver a wide array of fresh and processed food products to food distributors, produce wholesalers, supermarkets, and restaurants on a worldwide basis.

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 certain 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 October 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.