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NutraCea to Purchase Largest Rice Bran Oil Processing Facility in South America
Date:2/4/2008

NutraCea to Incorporate New Proprietary Technology to Create Healthier and

Higher Value Products

PHOENIX, Feb. 4 /PRNewswire-FirstCall/ -- NutraCea (OTC Bulletin Board: NTRZ), a world leader in stabilized rice bran (SRB), nutrient research and technology, announced today that it has executed a definitive agreement to purchase the largest rice bran oil processing facility in South America, located in Brazil. This transaction is expected to close prior to the end of February 2008, subject to the satisfaction of certain customary closing conditions. More details of this transaction will be announced at the closing.

As part of this agreement, the Company has secured arrangements for the supply of raw rice bran with several local mills to initially provide 70,000 tons annually, which will be used for rice bran oil production.

The purchase of this facility allows NutraCea to immediately enter the edible oils market and have a location for distribution of its proprietary products in South America. This acquisition also provides a platform for the introduction of new, value-added products that NutraCea has been internally preparing to roll out, pending the procurement of additional amounts of bran, which this project provides a significant step towards accomplishing.

Over the last two years, NutraCea has been working toward and has now obtained all the necessary regulatory and government permits, including Anvisa registration, to be able to sell its entire portfolio of patented and proprietary stabilized rice bran and stage two derivative products into the Brazilian and South American markets. Products from the Brazilian plant will be sold in Brazil, neighboring South American countries and exported throughout the world. NutraCea has been devoting research and development resources internally in preparation for incorporating its proprietary stabilization technology into the rice bran oil extraction business.

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