ABOUT ML MACADAMIA ORCHARDS, L.P.

Overview

ML Macadamia Orchards, L.P. (“MLMO”) was founded in 1986 under Delaware partnership law as a publicly traded partnership (NYSE – “NUT”). MLMO is engaged in the business of growing and farming macadamia nuts in the state of Hawaii and is one of the world’s largest growers of macadamias. After completing the acquisition of 1,100 acres of macadamia orchards in August 2010, the Company now owns or leases approximately 5,290 tree acres of macadamia nut orchards in three regions within a 50 mile radius on the island of Hawaii. The Company also performs farming services on approximately 1,000 tree acres for other orchard owners. The Partnership is managed by its general partner, ML Resources, Inc. (the Managing Partner). Throughout the first 19 years of its existence, the Managing Partner was owned by various related entities, which managed the Partnership’s business activities. Effective January 6, 2005, 100% of the outstanding shares of ML Resources, Inc. were purchased by the Partnership on behalf of the limited partners.

Owned Orchards

The company’s owned/leased orchards produce approximately 25 million pounds of in-shell macadamias annually, with some variation depending upon seasonal weather patterns. From the inception of the Partnership until December 31, 2006, all of the production from these orchards was sold under long-term nut purchase contracts to Mauna Loa Macadamia Nut Corporation (“Mauna Loa”), who processed and marketed the macadamias under the Mauna Loa ® brand name. In December 2004, Mauna Loa was acquired by and became a wholly owned subsidiary of The Hershey Company.

Between 2007 and 2009, MLMO’s production was sold to various processors in Hawaii under short term agreements at market prices. For 2010 and 2011, approximately 80% of MLMO’s production will be sold to Mauna Loa at fixed prices. The remaining 20% is contracted to be sold to Mauna Loa under long-term market-based contracts.

Macadamia Farming

From 1986 until 2000, the Company outsourced all of its macadamia farming work to several affiliated companies under long-term service contracts. In May 2000, the company began performing its own farming operations by purchasing the assets of Ka’u Agribusiness, its primary farming service provider. Since then, the Company has farmed its own macadamia orchards and additional acres of macadamia orchards owned by other growers. All the orchards are located in three separate regions on the island of Hawaii (Keaau, Ka'u and Mauna Kea).

The company provides farming services for other orchard owners under long-term farming contracts, in which all direct and indirect costs are reimbursed to ML Macadamia Orchards. These contracts also provide a management fee to the Company, which is based as either a fixed fee per acre farmed, or as a percentage of reimbursed costs, ranging from 5% to 20%.