NutraCea Putting the "Function" In Functional Foods

Stabilized Rice Bran is the “Intel Inside” of the Food Industry

El Dorado Hills, Calif., March 7, 2007 —NutraCea (OTC Bulletin Board: NTRZ), Functional food consumption is growing fast. According to (Feb 2007) Market Research Reports, the US market was worth US $21.3B in 2006 while the European market reached US $8bn. The interest in functional foods and drinks has been fueled by a desire for convenience, as well as health. Busier lifestyles are making it harder to meet nutritional requirements using traditional food and drinks. Novel ingredients, new applications and future revenue opportunities are the key drivers to get on the fast track of the functional foods boom.

Sometimes referred to as the new "Phood" market, functional, fortified and healthy foods with medically beneficial ingredients cross all retail channels including mass-market, health/natural, Wal-Mart, and warehouse clubs according to a 2006 Packaged Facts report.

NutraCea has been involved in the dietary supplement and nutraceutical industry for many years and is now on the cutting-edge of functional food trends, "The food world is just catching on to the incredible potential and versatility of stabilized rice bran in functional food formulations. The benefit of adding stabilized rice bran as an ingredient is like reading the profile for perfect nutrition. And when you realize that 60 percent of this is thrown away when rice is processed it makes you wonder what is going on, why are we throwing away all the good stuff?" said Margie Adelman, Senior Vice President of NutraCea. "But not any more, with our patented technology, NutraCea has the capability to ensure that the world's 60 million metric tons of rice bran — the rice kernel's most nutritious component — is not limited to feeding animals, burned as fuel or wholly discarded each year."

Researchers from Guru Nanak Dev University in India have reported that the functional properties of protein concentrates from rice bran are better than casein and some soy protein isolates, and could be an inexpensive ingredient for a wide range of food products.

In a comprehensive study in 2004 documenting the comparative values of lipophilic (fat soluble) and hydrophilic (water soluble) antioxidants found in a cross section of 28 foods commonly consumed in the United States in comparison to rice bran. Rice bran ranked the highest in the study.

"Over 120 antioxidants and cofactors have been identified in rice bran so far. These include gamma oryzanol and its 20 components, the tocopherols and the tocotrienols, which exist in 10 different forms, polyphenols, 21 different phytosterols, carotenoids, phospholipids, polysaccharides, amino acids, B vitamins and enzymes like glutathione peroxidase and metal chelators," said Dr. Rani Patel, Chief Science Officer of NutraCea.

"Rice Bran is thus a repository of potent antioxidants that nature has provided to ensure the health of the germ in the rice grain. The incredible properties of stabilized rice bran become more apparent with every study published and set the bar even higher for the functional food industry; stabilized rice bran has created a new realm of nutraceutical and physiological benefits, which no other food can even approach. With a unique blend of fiber, antioxidants, vitamins and minerals along with all the essential amino acids for protein metabolism, rice bran as a food or in the form of a dietary supplement offers the perfect solution in the ongoing battle against chronic disease and the many health issues that face our nation today," said Ms. Adelman.

NutraCea’s brands can help food manufacturers tap into key growth areas in the food marketplace. One of the emerging categories predicted to have substantial growth potential is gut health. Market trends forecast that probiotics foods are gaining US consumer acceptance in rapidly growing numbers. Business Communications Co Inc. estimated US sales of probiotics will experience an average annual growth rate of 7.1 percent to reach $1.1 billion by 2010. Yogurts, kefir and cultured drinks represent the major categories. Also, according to a new report from market analysts Frost and Sullivan, science-backed health claims will be the key to strong growth for manufacturers of the gut health ingredients prebiotics looking to drive into the soaring US market. Currently valued at €12m in 2003, the market is projected to reach $103.2 million by 2010. NutraCea’s RiSolubles®, a gluten- free, nutrient dense, all natural soluble fraction of rice bran high in prebiotic fiber will significantly improve the nutritional profile of food and beverages for this growing market segment.

As consumers look more and more to their foods and beverages to provide them with good nutrition and medically beneficial ingredients, NutraCea will be there with novel stabilized rice bran ingredients, based on science, and derived from the world’s largest wasted agricultural resource - true sustainability and ultimate recycling in action!

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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