PHOENIX, March 24, 2008 /PRNewswire-FirstCall/ —NutraCea (OTC Bulletin Board: NTRZ), a world leader in stabilized rice bran (SRB), nutrient research and technology, announced today that it has completed the purchase of a 124,000 square foot production facility in Phoenix. The seven-year-old facility, located at 4502 West Monterosa Street, will enable NutraCea to expand its stage-two production of value-added rice bran derivatives and its line of baby cereal products to supply growing customer interest in NutraCea's nutrient-rich rice-bran-based products.

This new plant will have an initial capacity of 5,000 tons annually when fully operational and will provide enough room to accommodate up to 10,000 tons of annual production when it is fully built out. Integrated packaging will be conducted at the facility, as well, and the building will serve as a warehouse for raw materials and finished products for shipping. Installation of equipment will begin immediately, much of which is already fabricated, with commissioning of the facility set for October 2008.

"Customer demand for our products is increasing; and this additional capacity is important to NutraCea with our first stage-two facility in Dillon, Montana operating at full capacity and entirely committed for the foreseeable future," said Brad Edson, President and CEO of NutraCea. "We believe that we will utilize 100 percent of the new capacity that will come on-line shortly after the October start date, and that this production should begin to be accretive to revenues in the 2008 fourth quarter. We will be installing an additional 1,650 tons of production capacity. This additional capacity should be operational by the end of the first quarter of 2009, and should provide us with a total of 6,650 tons of capacity beginning in the second quarter of 2009."

"We're proud to be a part of the Phoenix community and honored to be a growing company in Arizona," concluded Edson.

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.

Source: NutraCea

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