NutraCea Announces Private Label Contract to Produce Organic Baby Cereal for Major Grocery Store Chain

Cereal to Be Launched in 1600 Stores Nationwide in March

El Dorado Hills, CA., January 19, 2007 —NutraCea (OTC Bulletin Board: NTRZ), a world leader in stabilized rice bran research and technology, announced today they have received their first purchase order based on an agreement they have entered into with one the nation's largest supermarket chain with over 1600 stores nationwide to produce organic rice baby cereal for their private label brand.

"We're very pleased to be able to provide this national grocery store chain with a high quality organic rice baby cereal product," said Margie Adelman, Senior Vice President NutraCea. "We also have plans for line extensions that will include an additional organic cereal with a different formulation for the second quarter of 2007," Adelman added.

"We're delighted to have captured the attention of one of the top three grocery store chains in the country and we are engaged in discussions about developing finished products based on NutraCea's proprietary stabilized rice bran product portfolio in a variety of categories," Adelman added.

Due to confidentiality restrictions, NutraCea is unable to disclose the name of the supermarket chain or the name of the cereal to be launched.

About NutraCea

NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. Through its wholly owned subsidiary, RiceX, the Company manufactures and distributes products and food ingredients made from rice bran through its proprietary technology and processes. NutraCea has developed intellectual properties to create a range of proprietary product formulations, delivery systems and whole food nutrition products. The Company’s proprietary technology enables the creation of food and nutrition products from rice bran, normally an underutilized by-product of standard rice processing. In addition to its whole foods products, NutraCea develops families of health-promoting "nutraceuticals," including natural arthritis relief and cholesterol-lowering products. More information can be found in the Company's filings with the SEC and at its Web site http://www.NutraCea.com.

Forward-Looking Statements

This release contains forward-looking statements, including, but not limited to, statements regarding the successful implementation of the strategic growth plan, and the transition of Chief Financial Officers, which statements are subject to market and other risks. These statements are made based upon current expectations and actual results may differ from those projected, due to a number of risks and uncertainties. The Company does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in the Company's filings with the Securities and Exchange Commission, including the Company's most recent periodic report.

Back to top