NutraCea Reports Third Quarter Results

EL DORADO HILLS, Calif., Nov 14, 2005 /PRNewswire-FirstCall via COMTEX/ -- NutraCea(R) (NTRZ) announced that, for the third quarter of 2005, the Company reported a net loss per share of $.03, a reduction compared to the third quarter of 2004 when the Company reported a net loss of $.04 per share.

Gross revenue increased to $301,726 in the third quarter of 2005 compared to $249,840 from the same quarter of 2004, an increase of 21%. Gross revenue increased to $1,060,271 for the nine months ending September 30, 2005, an increase of 60%, compared to $662,910 for the same nine month period ending September 30, 2004.

For the third quarter of 2005, the net loss was reduced to $1,035,544 compared to a net loss of $1,083,893 for the same quarter of 2004. Approximately $385,000 of the loss incurred in the third quarter of 2005, equating to 37% of the total, resulted from non-recurring, non-cash expenses. Based on weighted average shares outstanding of 38,033,352 for the third quarter of 2005, the net loss per share was $0.03. The comparable amount for the second quarter ended 2004 based on weighted average shares outstanding of 26,537,529 was a net loss $.04 per share.

The net loss for the nine months ended September 30, 2005 was $3,711,245 compared to a net loss of $21,297,570 recorded for the nine months ended September 30, 2004. The first nine months of 2004 included substantial expenses associated with the issuance of stock and options to consultants and employees during that period. The amount of expenses associated with similar issuances of stock and options was significantly reduced during the first nine months of 2005. Based on weighted average shares outstanding of 36,756,797 for the first nine months of 2005, the net loss was $.10 per share. The comparable amount for the first nine months of 2004 based on weighted average shares outstanding of 18,946,026 was a net loss per share of $1.12.

The numbers stated above do not include the financial results of RiceX, which merged with NutraCea on October 4, 2005 after the end of the current quarter for this 10-QSB as of September 30, 2005. NutraCea has prepared Unaudited Pro Forma Condensed Combined Consolidated Financial Statements at September 30, 2005 for the combined company assuming the merger had been previously completed. These Pro Forma Statements will be disclosed in Form 8-K/A to be filed with the Securities and Exchange Commission on or before November 18, 2005. In addition, the combined numbers of both companies will be consolidated when NutraCea's 10-KSB, is filed on or before March 31, 2006.

"We expect our 2005 fourth quarter to positively reflect significant improvement in sales and bottom line performance, pursuant to the progress being made from the previous publicly announced initiatives the Company has undertaken," stated Brad Edson, CEO and President of NutraCea.

About NutraCea(R)

NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. Through its wholly owned subsidiary RicX, the company manufacturers as well as distributes products and food ingredients made from Rice Bran and produced through NutraCea's proprietary technology and processes. The Company has developed intellectual property 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 waste 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 http://www.NutraCea.com.

Forward Looking Statements

This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of the competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission, including the company's most recent periodic report. The impact of the competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of materials, the regulatory environment, the compliance with the legal requirements and market demands necessary for the sale of the company's products in the foreign markets that the company is entering, fluctuations in operating results and other risks detailed from time to time 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

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