NutraCea Announces Distribution Agreement With FX Morales y Associados, S.A. de C.V. for Mexico

EL DORADO HILLS, Calif., Feb 28, 2007 /PRNewswire-FirstCall via COMTEX/ -- NutraCea (NTRZ) a world leader in stabilized rice bran research and technology, announced today they have signed a distribution partnership with FX Morales y Associados. The agreement will allow NutraCea to expand their food ingredient sales in the Mexican market to FX Morales customers, which include large multinational food companies such as Grupo Gamesa (Frito Lay, Pepsico, Quaker, Gatorade) Grupo Bimbo, Grupo Maseca, Kellogg, Nestle, Kraft, Unilever and Bristol Myers Squibb among others.

Francisco Xavier Morales, General Director of FX Morales y Associados, stated, "We are very happy to be the distributor for NutraCea's stabilized rice bran product line in Mexico, as our customers have come to rely on us to provide high quality value-added ingredients. NutraCea's proprietary, patented stabilization technology enables the food industry to take advantage of the rich nutritional properties of rice bran and rice bran derivatives, offering a cleaner ingredient deck and improved nutrition for consumers. We intend to leverage NutraCea's existing relationships with large multinational food corporations that have a presence in Mexico."

"There has been a recent swell of interest for NutraCea's stabilized rice bran as a functional food ingredient by several Mexican companies. This increased attention was further accelerated in the last several weeks when the Mexican government imposed price controls on tortillas at a time when corn prices were experiencing unprecedented upward movement, placing a tremendous pressure on already narrow margins for the country's main food staple. Stabilized rice bran is a healthful, gluten-free and economical alternative to corn and other grains that are becoming increasingly more expensive," said Margie Adelman, Senior V.P. NutraCea.

"This strategic relationship with FX Morales allows NutraCea to forgo opening up a planned office in Mexico and instead immediately implement a purchase and warehouse arrangement utilizing the FX Morales infrastructure and contract workers within Mexico. Their professional organization has an impeccable reputation and long standing relationships with many major U.S.-based food corporations, which operate in the Mexican market. By partnering with FX Morales we are confident that these important customers will be serviced with both sales and technical support," added Kody Newland, Senior Vice President Sales.

About FX Morales y Asociados
FX Morales y Asociados is a distributor of food ingredients that enjoys an excellent reputation in the Mexican food processing market. The company started operations in 1988 and has their headquarters in the northeastern city of Monterrey, Mexico, from where they service the marketplace nationwide. They count among their customers most of the major food processors; serving the segments of bread, cookie and crackers, dairy products, chocolate milk (both powder and liquid, breakfast cereals, cereal bars, as well as other segments. They have been generating business for themselves and for their principals in the order of $40 million dollars per year displacing around 22,000 metric tons of food ingredients of different origins. They base their efforts in providing their customers with the best creative solutions that add value to their customer processes.

About NutraCea
NutraCea is a world leader in production and utilization of stabilized rice bran. They hold many patents for stabilized rice bran production technology and proprietary neutraceutical formulas, ranging from arthritis, chronic bowel conditions, and effective diabetes control to cardiovascular disease treatment protocols. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, normally a waste by-product of standard rice processing. Committed to helping the underfed, NutraCea is actively involved in providing product and technology for developing countries through NutraCea's RiceAde feeding program. 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. Actual results may differ from those projected due to a number of risks and uncertainties, including, but not limited to the possibility that some or all of the pending matters may not proceed as contemplated and the risks specified in the Company's filings with the Securities and Exchange Commission. These statements are made based upon current expectations that are subject to risk and uncertainty. 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.

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