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NutraCea Provides Update on Domestic Operations

PHOENIX, Jan. 28 /PRNewswire-FirstCall/ -- NutraCea (OTC Bulletin Board: NTRZ), a world leader in stabilized rice bran (SRB), nutrient research and technology, today provided an update on its domestic operations.

The Company stated that its Stage Two facility located in Dillon, Montana has been running at full capacity since the middle of the fourth quarter and is continuing to run 24/7, except when it is disassembled for cleaning. Further, the facility is fully committed to run at full capacity through the end of 2008.

Concerning the pending Phoenix Stage Two facility, Leo Gingras, Chief Operating Officer of NutraCea, commented, "We are very pleased with the strong demand that we have been receiving for our Stage Two products. Based on this, we have decided to enlarge the size of our new Phoenix facility from 50,000 square feet to between 100,000-125,000 square feet. As mentioned previously, this new facility will also include processing and packaging systems that will be utilized for unique customer requirements, including those in the baby cereal business."

"We are in the process of purchasing an existing building, and all of the equipment is currently being constructed. We expect to begin installing this equipment during the first half of this year and to have the facility operational by the end of the third quarter," said Gingras.

Construction on NutraCea's Stage One Southern Louisiana facility at Lake Charles is anticipated to be completed by the end of the first quarter. This facility will have the capacity to provide up to 30,000 tons of stabilized rice bran annually. To view photographs of the progress at this site visit the Company's web site at:

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 as well as distributes products and food ingredients made from Rice Bran through its proprietary technology and processes. The Company has developed intellectual properties to create a range of proprietary product formulations, delivery systems and whole food nutrition products. NutraCea's proprietary technology enables the creation of food and nutrition products from rice bran, normally a wasted by-product of standard rice processing. In addition to its whole foods products, NutraCea develops families of health- promoting "nutraceuticals," including natural arthritic relief and cholesterol-lowering products. More information can be found in the company's filings with the SEC and you can visit the NutraCea web site

Forward Looking Statements

This release contains forward-looking statements, including, but not limited to, statements regarding the future completion of a new facilities, the continued operation of existing facilities, and the market demand from new accounts for the materials to be produced at the new and existing facilities, all of which statements are subject to market risks, and the possibility that NutraCea will not be able to complete the facilities on a timely basis, to continue the operations at existing facilities at full production levels, or to obtain sufficient customer demand to utilize expected production from the new and existing facilities. 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.

Company Contact:

Margie Adelman

Senior V.P. NutraCea


916-220-3500 cell

Investor Relations Contact:

Marilynn Meek

Financial Relations Board


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