Costco Expands Monterey Pasta Fresh Calzones Throughout Canada; Unique Fresh Calzones Find a Receptive Audience Among Canadians.

Business Editors

SALINAS, Calif.--(BUSINESS WIRE)--Sept. 20, 2001

Monterey Pasta Company (Nasdaq:PSTA) announced that Costco will expand Monterey's presence in Canada from 29 stores in the Western division to all 60 Canadian stores, including the 31 stores in the Eastern Division. The success of Monterey's new Fresh Stuffed Calzones created the impetus for the national expansion.

The new items in regional distribution or planned for national distribution are Chicken Florentine Calzone, Six Italian Cheeses Calzone, and Spinach and Feta Calzone.

R. Lance Hewitt, CEO of Monterey Pasta Company, commented: "This expansion represents the execution of our strategy to build a presence throughout Canada. We hope to be able to expand on this base with additional products in the coming months. Calzones have, in the past, proved to be a very valuable asset in gaining initial distribution with other chains."

Founded as a regional brand, Monterey Pasta now has distribution in more than 6,300 retail and club stores throughout the United States and selected regions of Canada. Monterey Pasta manufactures USDA inspected, healthy, gourmet refrigerated fresh pasta, sauces, pizza, and soups at its integrated corporate headquarters/manufacturing facility in Salinas, (Monterey County) CA.

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, intense competition in the market in which the Company competes, consumer acceptance of Borsellini and Calzones and other new products, continued increased energy and dairy ingredients costs, and the Company's ability to improve production efficiencies of its Calzone and Borsellini lines. 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 risks, please read the Company's Annual Report on Form 10-K as of December 31, 2000, its Quarterly Report on Form 10-Q for First and Second Quarter 2001, and its 2001 Proxy.