NutraCea Announces Purchase of New Pellet Manufacturing Equipment to Serve Animal Nutrition Customer Demands

Production of Stabilized Rice Bran in Pellet Form will Supply Premium Animal Nutrition Accounts

PHOENIX, May 16, 2007 —NutraCea (OTC Bulletin Board: NTRZ, a world leader in stabilized rice bran (SRB) research and technology, announced today it has purchased specialized equipment for blending and pelleting Stabilized Rice Bran (SRB). The pelleting equipment allows for a product line extension, which presses the stabilized bran into a pellet form specifically designed for stand-alone premium performance supplements and formulated feeds in the equine, pet food and wildlife markets.

The assets are fully operational and are designed to service new and existing equine customers. The Company expects significant demand from many of its key customers, including Hallway Feeds, Transcon Trading Co. in the international market and other large animal nutrition customers. "By allocating part of our bulk animal production to this new pelleting operation, NutraCea will be achieving an improved level of value from its existing supply of bran and strengthen its relationship with new and existing customers who need the value-added production," stated Leo Gingras, COO of NutraCea.

In accordance with our mission and strategic plan, we continue to ramp up our production capabilities through the building of new plants. Additionally, we look for strategic acquisitions and line extensions, which will allow us to further integrate our process into our customers chain of production, making us ever more valuable to their operations while maintaining our leadership position in the industry," said Brad Edson, President and CEO of NutraCea.

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.

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