Monterey Gourmet Foods to Close Eugene, Oregon Plant

SALINAS, CA--(Marketwire - August 14, 2009) - Monterey Gourmet Foods (NASDAQ: PSTA), a
manufacturer and marketer of fresh gourmet refrigerated food products,
announced that it will close its Eugene, Oregon facility, and move the
manufacturing of its Emerald Valley Kitchen products to Kent, Washington.
The Eugene plant will close on September 4, 2009.

"This was a very difficult decision because it affects the lives of our
people, their families and the community," said Eric C. Eddings, CEO of
Monterey Gourmet Foods. "We want to thank our employees at the facility for
their hard work, dedication, loyalty and many years of service."

In making this decision, the company assessed all of its production
facilities and determined that relocating the Eugene plant production to
the state-of-the-art Kent facility would optimize overall asset utilization
and provide customers with more innovative and flexible production runs
they require in response to changing consumer preferences.

The Eugene, Oregon closing will affect approximately 25 people, who have
been given advance notice. Management and human resource personnel have
been meeting with Eugene staff to discuss other potential employment
opportunities within the company, severance, health, welfare, dental
benefits, and other information pertinent to the employees. The company is
also working cooperatively with the state and local governments to provide
information about unemployment benefits and other job opportunities.

Emerald Valley Kitchen, which was acquired by Monterey Gourmet Foods in
2003, has contributed a minimum of 5% of Emerald Valley Kitchen profits to
ecological and humanitarian projects in the greater Eugene/Portland area
since 1984. In addition, the Company plans to continue to support the
local Eugene community and its charitable organizations through this
contribution.

About Monterey Gourmet Foods (NASDAQ: PSTA)

Monterey Gourmet Foods manufactures USDA inspected, fresh gourmet
refrigerated food products at its integrated manufacturing facilities in
Salinas (Monterey County), CA; and Kent, WA. Monterey Gourmet Foods has
national distribution of its products, which are sold under the brands
Monterey Pasta Company, CIBO Naturals, Emerald Valley Kitchen and Sonoma
Cheese in more than 11,000 retail and club stores throughout the United
States and selected regions of Canada, the Caribbean, Latin America, and
Asia Pacific. For more information about Monterey Gourmet Foods, visit
www.MontereyGourmetFoods.com.

Safe Harbor Statement

This press release contains forward-looking statements concerning
unannounced results of operations and projections for future periods
including without limitation such phrases and terms as would optimize
overall asset utilization and provide more innovation and flexible
production runs. Such forward-looking statements are based on currently
available competitive, financial and economic data and management's views
and assumptions regarding future events. Such forward-looking statements
are inherently uncertain, and investors must recognize that actual results
may differ from those expressed or implied in the forward-looking
statements. Consequently, the company wishes to caution readers not to
place undue reliance on any forward-looking statements. Among the factors
that could cause Monterey Gourmet Foods' actual results to differ from such
forward-looking statements are the following: (i) the process associated
with the integrations of all the company's brands, plants and sales force,
(ii) a significant reduction of sales to two major customers currently
comprising a majority of total revenues, (iii) the retention of newly
acquired customers including achieving volume projections for these new
customers, (iv) the company's ability to achieve improved production
efficiencies, (v) the timely and cost-effective introduction of new
products in the coming months, (vi) the utilization of the
recently-completed plant expansion and the increased fixed costs associated
with increased plant capacity, (vii) retention of key personnel and
retention of key management, (viii) the risks inherent in food production,
(ix) intense competition in the market in which the company competes and
(x) Monterey Gourmet Foods' ability to source competitively priced raw
materials to achieve historical operating margins. In addition, the
company's results may also be affected by general factors, such as economic
conditions, political developments, interest and inflation rates,
accounting standards, taxes, and laws and regulations in markets where the
company competes. The company has provided additional information regarding
risks associated with the business in the company's Annual Report on Form
10-K for fiscal 2008 as well as other filings with the SEC. These
statements are based on information as of August 4, 2009 and the company
assumes no obligation to update any forward-looking statements, whether as
a result of new information, future events, or otherwise.