Monterey Gourmet Foods Licenses Casual Gourmet Brand for Protein Products to Aidells Sausage Company

SALINAS, CA--(MARKET WIRE)--Feb 6, 2009 -- Monterey Gourmet Foods, Inc. (NasdaqGM:PSTA - News), a manufacturer and marketer of fresh gourmet refrigerated food products, entered a multi-year licensing agreement with Aidells Sausage Company, Inc. to use the Casual Gourmet® brand on protein products in exchange for licensing fees. The agreement is effective on February 9, 2009. Monterey Gourmet Foods will conduct tests on sample shipments to test specified quality standards as well as retain the rights to the Casual Gourmet brand for non-protein products such as spreads and dips. In addition, Monterey Gourmet Foods will no longer produce stock-keeping units (SKUs) under Casual Gourmet.

"Our Casual Gourmet sausages have been a popular item," said Eric C. Eddings, president and CEO of Monterey Gourmet Foods. "However, the increasing production costs at our volume level have resulted in losses for years. We are excited we -- along with Aidells Sausage -- were able to construct an innovative solution. In this win-win situation, Aidells can leverage its production facilities and benefit from the brand equity we built, and Monterey Gourmet Foods can earn license fees and focus on core business prospects in pastas. This agreement is part of a series of strategic initiatives aimed at leveraging our core competencies to take advantage of our strong brands, exceed customer expectations and provide value to our shareholders."

About Aidells Sausage Company

Founded by Chef Bruce Aidells, Aidells Sausage Company produces more than 25 sausage varieties for both retail and foodservice customers and stays committed to its original vision: to satisfy the appetite for exceptional taste. Like that first batch of Andouille that Bruce made in 1983, Aidells still handcrafts its sausages in small batches from the finest cuts of meat and poultry without binders, fillers or MSG.

About Monterey Gourmet Foods (NasdaqGM:PSTA - News)

Monterey Gourmet Foods manufactures USDA inspected, fresh gourmet refrigerated food products at its integrated 133,000 square foot corporate headquarters, distribution, and manufacturing facilities in Salinas (Monterey County), CA; Kent, WA; and Eugene, OR. Monterey Gourmet Foods has national distribution of its products, which are sold under the brands Monterey Pasta, CIBO Naturals, Emerald Valley Kitchen, Sonoma Foods and Casual Gourmet 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.

     Company Contacts:
     Monterey Gourmet Foods
     Eric Eddings
     Chief Executive Officer
     Email Contact
      
     Scott Wheeler
     Chief Financial Officer
     Email Contact
     (206) 622-1016
      
     Investor Relations Contacts:
     Lippert / Heilshorn & Associates
     Becky Herrick
     Email Contact
     (415) 433-3777