Diamond Foods expecting to conclude its audit committee investigation by mid-February 2012 regarding accounting for certain crop payments to walnut growers

SAN FRANCISCO , December 12, 2011 (press release) – Diamond Foods, Inc. (Nasdaq:DMND - News) today provided an update on its ongoing Audit Committee investigation into accounting for certain crop payments to walnut growers.

The Audit Committee currently anticipates being able to conclude its investigation by the middle of February, 2012. As a result of the ongoing investigation, Diamond will not file its Form 10-Q for its fiscal first quarter prior to the December 12, 2011 filing deadline. Diamond will take steps to file its Form 10-Q for the first quarter as soon as practicable after conclusion of the investigation. The Audit Committee has dedicated significant resources to its investigation, including the retention of independent legal and accounting advisors, in order to conduct a thorough and expeditious review.

In accordance with standard Nasdaq procedure, Diamond expects to receive a notice of deficiency from the Nasdaq Listing Qualifications Department, indicating that Diamond is not in compliance with Nasdaq Listing Rule 5250(c)(1). Diamond intends to submit a plan to regain compliance as quickly as possible. During this process, Diamond's common stock will continue to be listed and traded on The NASDAQ Global Select Market.

About Diamond

Diamond Foods is an innovative packaged food company focused on building, acquiring and energizing brands including Kettle(R) Chips, Emerald(R) snack nuts, Pop Secret(R) popcorn, and Diamond of California(R) nuts. The Company's products are distributed in a wide range of stores where snacks and culinary nuts are sold. For more information visit our corporate web site: www.diamondfoods.com.

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