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NutraCea Announces Third Quarter 2008 Financial Results
Date:11/7/2008

million for the third quarter of 2007. The $1.9 million increase was due to $1.2 million of SG&A costs from our Irgovel segment and a $726,000 increase from our NutraCea segment.

Brad Edson, President and CEO of NutraCea commented, "Driven by strong execution of our business model we realized continued improvement in our operations this quarter with results coming in-line with expectations. We are particularly pleased with our consistent sequential sales progress, and sequential improvement reflected in decreased operating costs, reflecting upward repricing, increasing utilization, as well as the improved bottom line performance quarter-over-quarter and sequentially. Results were marked by a strong performance from our recently acquired rice-bran oil manufacturing business unit, Irgovel, which remains on target to achieve the previously forecasted $30 million annualized revenue run rate. Additionally, in support of our expansion strategy, we are aggressively pursuing incremental sales opportunities for our NutraCea core SRB product line and achieved notable growth this period increasing sales by approximately $373,000 in addition to an intentional building of inventory for new customer orders anticipated in the fourth quarter 2008 and first quarter 2009.

Additionally, in a continued effort to enhance our financial position and balance sheet, we recently announced the signing of a proposal letter to obtain a $10.0 million credit facility through Wells Fargo Bank. We also issued $5.0 million of Series D Convertible Preferred Stock to two institutional investors. This financing is expected to provide the resources necessary to complete all projects that we currently have under construction including the planned capacity and technological enhancements at Irgovel".

Leo Gingras, COO, stated, "We remain focused on capitalizing on and extending our success within Irgovel. We are on track to add an additional 45,000 tons of annual capacity at Irgovel by
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