NutraCea Announces First Quarter 2008 Financi...(1.5 million were non-cash charges. Br...),Health

Brad Edson, president and CEO of NutraCea, commented, "The revenues that we reported for our first quarter were significantly higher year-over-year and slightly lower than we anticipated over Q4 of 2007 as we purposely began to build inventory for product roll outs for new and existing customers that are expected to occur late in our third quarter and build into our fourth quarter. Currently, on a cost basis, we have approximately $2.8 million in domestic inventory, which is a large number for us but necessary in order for the Company to have sufficient quantities of supply to be able to meet anticipated sales demands later this year. We will continue to build our inventory from current levels and are in fact adding further temporary warehousing space to accommodate our inventory needs. When our expected new sales come in during the second half of the year, our inventory will decrease significantly.

"Our production capability will meaningfully increase this quarter and even though we will be adding to inventory during the quarter, we should see our revenue grow from our reported $5.2 million in sales in the first quarter to between $9.0 and $10.0 million in our second quarter."

Mr. Edson added, "We expect to see continued top line growth quarter over quarter for the balance of the year as additional production comes on line, and we later begin to pull down on our inventory. This should be accompanied by continued decreases in operating costs over the next few quarters. Furthermore, the Company anticipates it will be able to contractually secure additional international supply and production agreements for raw bran this calendar year that should increase our ability to satisfy the new and anticipated demand for NutraCea's products for future years."

About NutraCea

NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. Through its wholly owned subsidiary R
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