DMND (MM)

Diamond Foods, Inc. (Nasdaq:DMND) ("Diamond") today announced that The Procter & Gamble Company ("P&G") and Diamond have mutually agreed to terminate Diamond's proposed acquisition of the Pringles business and have released each other from all liabilities related to the proposed acquisition. No "break-up" or other fees will be paid in connection with this termination.

"Diamond has enjoyed a positive and constructive working relationship with P&G throughout this process, and the mutual termination of our agreement and release of all associated liabilities was reached in the same spirit," said Rick Wolford, Diamond Foods' Acting President and Chief Executive Officer. "Diamond now will put its full effort on the growth of our business with focused execution to continue to build our successful brands."

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® 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.

CONTACT: Investor Contact:
         
         Linda Segre
         SVP, Corporate Strategy
         Diamond Foods
         415-445-7444
         lsegre@diamondfoods.com
         
         Media Contact:
         
         Sard Verbinnen & Co for Diamond Foods
         John Christiansen/Lucy Neugart
         415-618-8750
         jchristiansen@sardverb.com
         lneugart@sardverb.com