NutraCea Signs $21.6 Million Definitive Agreement with Food Trading Dominicana in Dominican Republic

EL DORADO HILLS, Calif., Sept 15, 2005 /PRNewswire-FirstCall via COMTEX/ -- NutraCea (NTRZ) announced today it has signed a definitive agreement to establish a joint entity with Food Trading Company Dominicana, S.A. The joint entity will be equally owned by NutraCea and Food Trading Company Dominicana, S.A. and is anticipated to generate $21.6 million in product revenue over the next two years. The joint entity will distribute a nutritionally-rich beverage made from stabilized rice bran to at least 200,000 children per day through a government-sponsored school feeding program. Initial shipments are anticipated to begin prior to the end of November, 2005.

This agreement doubles the servings per day requirement contemplated by the letter of intent previously executed by the parties and includes provisions to increase the number of servings in years 3 and 4 to at least 800,000 per day.

"Our joint venture with NutraCea is a strategic initiative that makes great economic and humanitarian sense and will be a wonderful benefit for the youth of our country through the school feeding programs," stated Juan Jose Agramonte, President of Food Trading Dominicana S.A.

Eddy Martinez Manzueta, Secretary of State of the Dominican Republic stated, "The government of the Dominican Republic is delighted to support this program, which will play such an instrumental role in meeting the nutritional needs of our school age children in addition to creating jobs and developing high value products in the agricultural industry."

"We're very pleased to be able to make a significant contribution to the health and well being of these children as they strive to reach their potential in life," said Margie Adelman, Senior Vice President of NutraCea.

About NutraCea

NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. 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, and all-natural "cosmeceutical" beauty aids. 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 statements regarding anticipated revenue. Actual results may differ from those projected due to a number of risks and uncertainties, including, but not limited to, agreement on the terms of the contemplated agreement with the Dominican Republic government, successful completion of the production facility, product demand and market acceptance, the impact of the competitive products and pricing, new product development, reliance on key strategic alliances, availability of materials, the regulatory environment, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. 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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