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Diamond Foods Expands C-Store Presence

Diamond Foods Inc., specializing in processing, marketing, and distributing culinary and snack nuts under the Diamond of California and Emerald of California brands, today announced new distribution expansion in the convenience store and club store channels for the Emerald product line.

In the convenience store channel, new agreements with Shell Entertainment and McLane Southeast were announced today. Shell is a 90-store chain based in Boston. McLane Southeast provides direct-store delivery to 450 convenience stores in Florida, including Gate, Kwik King, Handy Pantry and Sparky's stores.

"Consumers' response to the Emerald product line continues to be strong," said Michael J. Mendes, president and CEO. "We are pleased to increase distribution in convenience stores. The goal for fiscal 2006 is to at least double Emerald sales and this distribution expansion increases the opportunity for us to achieve our target
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