DMND (MM)

Diamond Foods, Inc. (Nasdaq:DMND) today announced that its Board of Directors approved a cash dividend of $0.045 per common share. The dividend will be payable on February 2, 2012, to stockholders of record as of January 24, 2012.

About Diamond

Diamond Foods is an innovative packaged food company focused on building, acquiring and energizing brands including Kettle® Chips, Emerald® snack nuts, Pop Secret® popcorn, and Diamond of California® culinary and snack nuts. The Company's products are distributed in a wide range of stores where snacks and culinary nuts are sold.

Corporate Web Site: www.diamondfoods.com

Consumer Web Sites: www.kettlebrand.com, www.kettlefoods.co.uk, www.emeraldnuts.com, www.popsecret.com, and www.diamondnuts.com

The Diamond Foods, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6112

CONTACT: Investor Contact:
         Linda Segre, SVP, Corporate Strategy
         (415) 445-7444
         lsegre@diamondfoods.com
         
         Media Contact:
         Stephen Sibert, VP, Corporate Affairs and Communications
         (415) 445-7444
         ssibert@diamondfoods.com