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NutraCea Provides Update on Domestic Operations
Date:1/28/2008

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: http://www.nutracea.com/facilities

About NutraCea

NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. Through its wholly owned subsidiary RiceX, the company
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SOURCE NutraCea
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