Green & Jigarjian LLP Announces Class Action Lawsuit Against Monterey Pasta Company on Behalf of Investors

SAN FRANCISCO, March 21, 2003: On March 21, 2003, Green & Jigarjian LLP announced that a class action has been filed in the United States District Court for the Northern District of California, on behalf of purchasers of Monterey Pasta Company ("Monterey Pasta" or the "Company") (Nasdaq: PSTA - news) publicly traded securities during the period between July 11, 2002 and December 16, 2002, inclusive (the "Class Period").

   The complaint charges Monterey Pasta and certain of its officers and directors with issuing false and misleading statements concerning its financial performance and future prospects. Specifically, the complaint alleges that: (i) the defendants described the Company's dependence on two of its largest customers for continued growth, but failed to disclose that one of its major customers had adopted a new pilot purchasing program which would negatively impact the Company's earnings growth in both the short and long term; and (ii) when the defendants finally disclosed that its revenues were being negatively impacted by this new purchasing program, the Company's share price fell $2.59 per share, or 37.8%, to close at $4.26 per share. The false and misleading statements deceived the investing public regarding Monterey Pasta's financial performance and future prospects and inflated the intrinsic value of the Company's shares. On December 17, 2002, the Company announced that it would be revising its fourth quarter sales revenue downward from its previous guidance of 12% to 15%, to a range of flat to 5% compared with the same quarter a year ago, citing weak sales of its second-largest customer, and disclosing that "the sales problem with this customer really began in June concurrent with the inception of a new pilot purchasing program."

   If you bought Monterey Pasta publicly traded securities between July 11, 2002 and December 16, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than April 14, 2003.

   A copy of the Complaint is available from the court or from Green & Jigarjian LLP. Please direct your inquiries concerning the Monterey Pasta action to Robert S. Green or Robert A. Jigarjian by telephoning (415) 477-6700 or emailing gj@classcounsel.com. You may also contact the firms of Cauley, Geller, Bowman & Coates, LLP or Schiffrin & Barroway LLP.

   The attorneys of Green & Jigarjian LLP have extensive nationwide experience in prosecuting complex cases involving securities fraud, breach of fiduciary duty by company management and other violations of the rights of investors. To visit our website for more information, please go to http://www.classcounsel.com.

Contact Person: Robert S. Green