1 Confidential Promoting Active and Healthy Lifestyles Michael J. Mendes President and CEO 21415pm

1Confidential

Promoting Active and Healthy LifestylesPromoting Active and Healthy Lifestyles

Michael J. MendesPresident and CEO

21415pm

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Important InformationImportant Information

This material contains forward-looking statements, including forecasts of growth, long-term financial goals, expanding margins, industry growth and our strategic plans, that involve known and unknown risks and uncertainties that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this material. Actual results may differ materially from those contained in the forward-looking statements. Such risk factors include, among others: safety and quality issues could harm our sales; fluctuations in raw material prices and availability could harm our profitability; competition could affect our results of operations; inability to integrate acquired entities could harm our profitability; loss of one or more major customers could reduce revenue and profits; risk of failure to expand distribution in existing channels or secure new distribution outlets to sell our products, and changes in the food industry and customer preferences could reduce demand for our products. Additional information concerning these and other risk factors is contained in the Risk Factors section of our Annual Report on Form 10-K, on file with the Securities and Exchange Commission, as well as factors identified in our other periodic reports filed with the Commission from time to time.

The forward-looking statements in this material are based on our assumptions, expectations and projections about future events as the date of this presentation. We do not undertake any obligation to update this information to reflect events or circumstances subsequent to its presentation.

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Premium Culinaryand Snack Food Company

Brands

Consumers Valueand Trust

Innovation

Convenient,Great Tasting

Products

Platform forLong-Term

Growth

Category andEarnings Expansion

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Century of InnovationCentury of Innovation

Walnut GrowersCooperative

1912

ContinuousInnovation

Packaging Brand Advertising

1990s

Culinary NutLaunch

Snack NutLaunch

2004

IPONasdaq:DMND

2005

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Snack Nuts Produce Snacks

Brands Consumers Value and TrustBrands Consumers Value and Trust

Culinary Nuts In-Shell Produce Foodservice / Ingredient

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Net SalesNet SalesNet SalesNet Sales

Focus on Long-Term GrowthFocus on Long-Term Growth

FY Ended July 31

$180 $200

$288 $282$309

$360

$463 $477$523

$522-540

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08

$ Millions$ Millions13% CAGR13% CAGR

Guidance

EPSEPSEPSEPS

$ / Share$ / Share

$0.80-0.90

$0.47$0.53

'06 '07 '08Guidance

FY Ended July 31

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Preliminary Q2 Results and Revised GuidancePreliminary Q2 Results and Revised Guidance

(1) Preliminary results only; subject to completion of review by auditors and company.

$ Millions,Except per Share and %

PreliminaryQ2 FY08 (1)

Net Sales:Culinary / In-Shell

Snack $19

Retail

Ingredient / Foodservice

Total Net Sales $132 - 134

Gross Margin

EPS $0.15 - 0.17

Revised 2008Full-Year Guidance

2007-2008% Change

$274 - 280$85 - 95

8 - 10%7 - 19%

$359 - 375 8 - 13%

$163 - 165 (13) - (14)%

$522 - 540 0 - 3%

16% +100 bp

$0.80 - 0.90 51 - 70%

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Favorable Consumer TrendsFavorable Consumer Trends

Simple / Less-ProcessedSimple / Less-Processed

Natural / From the EarthNatural / From the Earth

Nutrient / Vitamin-RichNutrient / Vitamin-Rich

Healthy Source ofHealthy Source ofProtein and FatProtein and Fat

High Energy Food PromotingActive and

Healthy Lifestyles

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Turning Natural Goods into Premium BrandsTurning Natural Goods into Premium Brands

CoffeeCoffee

WaterWater

NutsNuts

to Successto Success

Brand Image Packaging Convenience Expanded Usage Occasions

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2007

Retail Market OpportunityRetail Market Opportunity

Sources: Euromonitor, IRI, AC Neilsen and Company Estimates

$0.9B

$1.5B

$2.9B

$5.3B

Snack Nuts

Produce Snacks,Seeds, Trail Mix

Culinary Nuts

Growing Faster than Overall Snack Market

Underdeveloped Younger Demographic

High Traffic Area of Store On Trend Category

Stable, Mature Market 45+ Demographic

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Brand DemographicsBrand Demographics

Consumption by Age GroupConsumption by Age GroupConsumption by Age GroupConsumption by Age Group

Quality Choice forCulinary ConsumersNatural Choice for

Younger Snackers

Index of Eatings to Total Population

Source: NPD 2-Year Snacking Study 12/06

Diamond

Emerald

133 140156 164

110126

267

118

7767

25 - 34 35 - 44 45 - 54 55 - 64 65+

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Brand DemographicsBrand Demographics

133 140156

91 96 100 96

7289

126

174164

110126

94

185

267

118

7767

25 - 34 35 - 44 45 - 54 55 - 64 65+

Quality Choice forCulinary ConsumersNatural Choice for

Younger Snackers

Diamond

Emerald

Salty Snacks

Planters

Source: NPD 2-Year Snacking Study 12/06

Consumption by Age GroupConsumption by Age GroupConsumption by Age GroupConsumption by Age Group

Index of Eatings to Total Population

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Leverageable Operations / Distribution Platform

The Diamond Foods StoryThe Diamond Foods Story

Innovation /Brands

High Growth CPGCompany with

Increasing Profitability

Fastest-Growing

Leader

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Innovation /Brands



Leader

Fastest-Growing

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Diamond of CaliforniaDiamond of California

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High-Quality Product OfferingHigh-Quality Product Offering

Baking Meal Solutions

High-Traffic Produce Aisle

Holiday / Seasonal International

Presence

Global Customer Base

CulinaryCulinaryCulinaryCulinary In-ShellIn-ShellIn-ShellIn-Shell Ingredient / Ingredient / FoodserviceFoodserviceIngredient / Ingredient / FoodserviceFoodservice

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Product InnovationProduct Innovation

Recipe Ready Packages

Re-sealable Packages New Forms: Sliced,

Chopped Smaller Families Quick Service

Restaurants

Full Line of Culinary NutsFull Line of Culinary NutsFull Line of Culinary NutsFull Line of Culinary Nuts

Century of Innovation

New GrowthOpportunities

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Brand DevelopmentBrand Development

AdvertisingAdvertisingAdvertisingAdvertisingSponsorshipsSponsorshipsSponsorshipsSponsorships

ContentContentContentContent

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Culinary Nut LeaderCulinary Nut Leader

Net SalesNet SalesNet SalesNet Sales Market ShareMarket ShareMarket ShareMarket Share

$113

$142$164

$189$207

2003 2004 2005 2006 2007

Source: IRI 12/07

37.6%

7.5%

2.5%

18.2%

Diamond Planters Fisher PrivateLabel

$ Millions$ Millions $ Share$ Share16% CAGR16% CAGR 5x Larger Than

#2 Brand

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Innovation /Brands



Leader

Fastest-Growing


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Leverageable Operations and Distribution PlatformLeverageable Operations and Distribution Platform

WarehouseWarehouseModelModel

WarehouseWarehouseModelModel Shelf Stable Cost-Effective and Scalable

for New Products

NationwideNationwideProductionProductionNationwideNationwideProductionProduction South, Central, West Well-Positioned to Serve

Customers Across U.S.

Stockton, CA

- Live Oak- Linden- Modesto- Visalia

San Francisco, CAChicago, IL

Bentonville, AR

Fishers, IN

Robertsdale, AL

4 Seasonal Processing Facilities in California:

Atlanta, GA

Scranton, PA

Foxboro, MA

Production Facility Distribution Warehouse Administrative Office

21

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Broad Retail PresenceBroad Retail Presence

Diamond Brand Retail Distribution ChannelsDiamond Brand Retail Distribution ChannelsDiamond Brand Retail Distribution ChannelsDiamond Brand Retail Distribution Channels

Mass MerchMass Merch11%11%

ClubClub43%43%

GroceryGrocery46%46%

Strong Historical Relationships Ability to Establish Premium Brand

Source: TTM 10/2007 Diamond Culinary and In-Shell Net Sales

22% CAGR 2001 - 2007

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Additional Leverage OpportunitiesAdditional Leverage Opportunities

Corporate Infrastructure

Sales / Broker Network

IT / Back Office

Global Nut Sourcing

Largest Buyer of Tree Nuts in the U.S.

Platform forSnack NutExpansion

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Innovation /Brands



Leader

Fastest-Growing

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EmeraldEmerald

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Grow Snack Nut CategoryGrow Snack Nut CategoryGrow Snack Nut CategoryGrow Snack Nut Category

Strategic Market OpportunityStrategic Market Opportunity

Grow ShareGrow ShareGrow ShareGrow Share

32.6%

26.4%

36.5%

4.5%

Planters PrivateLabel

Emerald AllOthers

$2.9B$2.9BSnack NutsSnack Nuts

$30B$30BSnack TotalSnack Total

Source: IRI 12/07

$ Share

17% Share 17% Share of Deluxe of Deluxe Mixed NutsMixed Nuts

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High-Quality Product OfferingHigh-Quality Product Offering

Nuts and Seeds Trail Mixes

Nuts and Seeds Trail Mixes Sweet Snacks Dried Fruit

Center Store SnacksCenter Store SnacksCenter Store SnacksCenter Store Snacks Produce Aisle SnacksProduce Aisle SnacksProduce Aisle SnacksProduce Aisle Snacks

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Product Innovation: PackagingProduct Innovation: Packaging

Low Portability Cumbersome Packaging

Other Snack Nut BrandsOther Snack Nut BrandsOther Snack Nut BrandsOther Snack Nut Brands

EmeraldEmeraldEmeraldEmerald

On-the-Go Canister

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Product Innovation: FlavorsProduct Innovation: Flavors

Plain, Traditional Offerings

Patented Processes: Glazing, Roasting Unique Flavors

Other Snack Nut BrandsOther Snack Nut BrandsOther Snack Nut BrandsOther Snack Nut Brands

EmeraldEmeraldEmeraldEmerald

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New Products in DevelopmentNew Products in Development

Expanded Usage Occasions Greater Value Packaging

CLEAR PET CONTAINER

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Source of Natural EnergySource of Natural EnergySource of Natural EnergySource of Natural Energy

Brand DevelopmentBrand Development

National Advertising Online

Sponsorships Partnerships

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Increasing Velocity at RetailIncreasing Velocity at Retail

Lift from Feature and DisplayLift from Feature and DisplayLift from Feature and DisplayLift from Feature and Display

450%

800%

Snack Nuts Emerald

% Lift

Source: IRI 2007

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Natural Energy CampaignNatural Energy Campaign

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$7

$22

$41

$80

'04 '05 '06 '07

Rapid Growth Since LaunchRapid Growth Since Launch

FY Ended July 31

$ Millions

Emerald Net SalesEmerald Net SalesEmerald Net SalesEmerald Net Sales

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Growing the CategoryGrowing the CategoryGrowing the CategoryGrowing the Category

Innovation Driving GrowthInnovation Driving Growth

Leading the CategoryLeading the CategoryLeading the CategoryLeading the Category

27.3%

2.7%

(0.3%)

Emerald Category Planters

Growing 10x Faster than Category

Sources: IRI 12/07, Nielsen Consumer Panel 9/07

77%Incremental to Category

77%Incremental to Category

BrandBrandShiftingShifting

CategoryCategoryExpansionExpansion

NewNewBuyersBuyers

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Growing Snack Nut BusinessGrowing Snack Nut Business

FY ‘07 FY ‘11

$80M

$200 - 250MSnack Nut

SalesIncrease Velocity ofIncrease Velocity of

Products in DistributionProducts in Distribution

Fill Out Distribution inFill Out Distribution inExisting ChannelsExisting Channels

Introduce New ProductsIntroduce New Products

Expand Distribution toExpand Distribution toNew ChannelsNew Channels

Non-Linear Sales Growth Introduction Costs

– Often Contra Revenue– Frequently Realized Before Sales

Generation Ongoing Product Lifecycle

Management Competitive Environment

Investment / Timing Considerations

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$0

$20

$40

$60

$80

$100

$120

$140

$160

'01 '02 '03 '04 '05 '06 '07

Proven Channel Expansion ModelProven Channel Expansion Model

$ Millions$ Millions

CulinaryCulinary

SnackSnack

Club and Mass Merchandise Net SalesClub and Mass Merchandise Net SalesClub and Mass Merchandise Net SalesClub and Mass Merchandise Net Sales

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Innovation /Brands

Leader

Fastest-Growing

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27 of 33 Quarters Had Year-Over-Year Growth27 of 33 Quarters Had Year-Over-Year Growth

Strong Quarterly GrowthStrong Quarterly Growth

$189 $193 $194 $200$234

$253$272 $288 $298 $296 $289 $282 $282 $293 $303 $308 $319 $325 $340

$360$390

$412$435

$463 $468 $480 $468 $477 $469$488

$517 $523$538

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1


2000 2001 2002 2003 2004 2005 2006 2007 ‘08

Quarterly Trailing 12-months Net Sales (Q1 = Oct, Q2 = Jan, Q3 = Apr, Q4 = Jul)

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RetailRetail21% CAGR21% CAGR

Strong Top-Line GrowthStrong Top-Line Growth

2003 2004 2005 2006 2007

Ingredient / FoodserviceRetail

$309$360

$463 $477$523


Fiscal Year Ended July 31

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FY 2005FY 2005FY 2005FY 2005 FY 2007FY 2007FY 2007FY 2007

Margin ImprovementsMargin Improvements

Total Sales: $463 Million Total Sales: $523 Million

Ingredient/FS51% Retail

49%

Ingredient/FS36% Retail

64%

+ 450 bps Gross Margin

Opportunities for Additional Margin Expansion Input Cost Normalization Production and Distribution Efficiencies SG&A Leverage Continued Rationalization of Non-Strategic Business

(10)%(10)%CAGRCAGR

+21%+21%CAGRCAGR

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Margin & Profit Margin & Profit ImprovementImprovement

Margin & Profit Margin & Profit ImprovementImprovement

Strong Balance Strong Balance Sheet and Cash Sheet and Cash

FlowFlow

Strong Balance Strong Balance Sheet and Cash Sheet and Cash

FlowFlow

Attractive Attractive ValuationValuationAttractive Attractive ValuationValuation

Financial SummaryFinancial Summary

$ Millions,Except per Share and % 2006 2007 2008 Guidance

Total Net Sales Snack Retail

$477$41

$275

$523$80

$333

$522 - 5407 - 19% Growth8 - 13% Growth

Gross Margin 13.7% 15.0% +100 bp

Operating Margin 1.5% 2.4% 4.0 – 5.0%

EPS $0.47 $0.53 $0.80 - $0.90

EBITDA $23 $29 $36 - $39

Balance Sheet Cash and Cash Equivalents Long-Term Debt Debt / Equity

$36$2018%

$34$2016%

$59 (1)

$20 (1)

15% (1)

Other Dividend per Share PEG

$0.12–-

$0.12–-

$0.18 0.5

Fiscal Year Ended July 31

(1) Preliminary Results for January 31, 2008; Subject to Completion of Review by Auditors and Company

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Long-Term Financial TargetsLong-Term Financial Targets

20072011

Targets

Net Sales Growth 10% 6 - 8% CAGR

Operating Income Margin (1) 3% ~ 10%

Non-GAAP EPS Growth (1) 22% 40 - 50% CAGR

Sales Growth Includes:Sales Growth Includes:Sales Growth Includes:Sales Growth Includes:

Retail 14 - 18% CAGR

Snack $200 - 250M

Culinary ~ 5% CAGR

In-Shell < 3% CAGR

Gross Profit Margin 15% ~ 20%

(1) See 8-K filing dated September 20, 2007 for discussion of non-GAAP items

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InnovationInnovationInnovationInnovation BrandsBrandsBrandsBrandsPlatform forPlatform forLong-TermLong-Term

GrowthGrowth

Platform forPlatform forLong-TermLong-Term

GrowthGrowth

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Promoting Active and Healthy LifestylesPromoting Active and Healthy Lifestyles

Documents

1 Confidential Promoting Active and Healthy Lifestyles Michael J. Mendes President and CEO 21415pm