STOCKTON, California (May 3, 2006) - Diamond Foods, Inc. (Nasdaq: DMND), which developed a patented process for producing great-tasting glazed snack nuts, has introduced three new Emerald Trail Mix products - Emerald Breakfast Blend Trail Mix, Emerald Berry Blend Trail Mix and Emerald Tropical Blend Trail Mix. Retail distribution to grocery stores and drugstores is now taking place in key regional western and eastern markets, with national distribution scheduled for this fall.

All three new trail mix items are wholesome "fuel food" medleys of nuts, fruit and crunchy granola clusters. "Two things differentiate Emerald trail mix from most other trail mix products currently on the market," said Michael J. Mendes, president/CEO of Diamond Foods. "Each features one or more of Emerald's proprietary sweet glazed nuts, which are kettle-cooked to perfection for irresistible taste and crunch, and each includes granola clusters, which surprisingly have not been used in many other trail mix items."

To appeal to healthy, active, on-the-go lifestyles, Emerald trail mix is packaged in handy, reclosable foil pouches that are atmosphere controlled to lock in freshness and flavor. Breakfast Blend and Berry Blend come in 5.5-oz. pouches; Tropical Blend in 6-oz. pouches. The suggested retail price for each product is $2.69. Emerald Trail Mix is also available in 2.25-oz. pegboard bags that are being marketed specifically to convenience stores. The smaller bags will sell for 99 cents to $1.29.

Emerald Breakfast Blend Trail Mix boasts glazed walnuts and almonds, as well as apple chips, dried cranberries, yogurt raisins and granola clusters.

Emerald Berry Blend Trail Mix includes glazed walnuts, roasted peanuts, yogurt raisins, granola clusters and dried blueberries, strawberries and cranberries.

Emerald Tropical Blend Trail Mix features glazed walnuts, natural cashews, granola clusters and tropical fruit - shaved coconut and dried mango and pineapple.

"With the heightened awareness of the health benefits of nuts and the quest for trans fat-free food, the climate is perfect for these new Emerald products, which are designed to provide delicious guilt-free snacking, anytime, anyplace," said Mendes. "Because nuts contain mostly heart-healthy unsaturated fats, are great sources of antioxidants and, like fruit, are delicious, wholesome and energy-packed food, it was only a matter of time before trail mix made the transition from backpacks to the workplace."

Market research shows a resurgence of trail mix and other healthy snacks among time-challenged Americans who want to include more nutrition in their diets. According to Packaged Facts, a Maryland-based market research firm, U.S. retail sales of snack foods will grow to $57.3 billion in 2008, or 4 percent annually. The sale of healthy snacks like nuts and trail mix is expected to grow even faster, at 8 percent a year according to Packaged Facts.

Emerald Trail Mix will be available by the end of May in more than 7,000 retail outlets in eastern seaboard markets, including the metropolitan New York City area; Albany, NY; New England and Florida. Distribution is also taking place this spring to more than 2,500 stores in California, the Pacific Northwest and Arizona.

Emerald snack nuts were introduced nationwide in August 2004. The line now has 19 products, including traditional lightly seasoned snack nuts in handy on-the-go canisters, unique sweet and savory glazed nuts and nut combinations -- and now three new Emerald trail mix blends. Emerald snack products are sold in approximately 60,000 U.S. retail outlets including grocery stores, drugstores, convenience stores, mass merchandise outlets and club stores. For more information visit emeraldnuts.com.

About Diamond
Diamond Foods, Inc. is a leading branded food company specializing in processing, marketing and distributing culinary and snack nuts under the Diamond of California and Emerald brands. Diamond's products include walnuts, pine nuts, pecans, peanuts, macadamia nuts, hazelnuts, cashews, Brazil nuts and almonds. Diamond Foods is listed on the Nasdaq National Market as "DMND." For more information visit diamondfoods.com.