NutraCea Triples Capacity by Entering into Rice Bran Supply Agreement with Louisiana Rice Mill LLC

Feb 22, 2006 /PRNewswire-FirstCall via COMTEX/ -- NutraCea (NTRZ) announced that they have entered into a raw rice bran supply agreement with Louisiana Rice Mill LLC (LRM). The agreement triples NutraCea's capacity to produce its proprietary Stabilized Rice Bran (SRB) production in the United States. In addition, the Company announced the construction of its stabilization facility at the LRM rice milling facility in Mermentau, Louisiana.

Under the terms of the agreement, Louisiana Rice Mill (LRM) will supply raw rice bran from its rice milling operations to NutraCea. The supply agreement is intended to triple NutraCea's current supply of raw bran, which will be processed through NutraCea's exclusive proprietary stabilization system to produce stabilized rice bran and other value added-products for both the human and animal nutrition markets. The stabilization process will be implemented at LRM with the construction of a facility, which retrofits NutraCea's proprietary engineering process to the equipment at LRM. NutraCea has the ability to fund this project with existing cash resources. The new facility is expected to be completed prior to the end of the 3rd quarter of this year.

Bobby Hanks, CEO of LRM stated, "We look forward to the addition of NutraCea's facility to our milling operation. Our raw rice bran supply agreement with them will provide an opportunity to LRM to improve its competitive position relative to other rice milling companies in the region. NutraCea's commitment to invest significant capital for the construction of a stabilization plant connected to our milling operation demonstrates a strong belief in Louisiana rice farmers and millers to assist NutraCea in serving its customers."

"LRM is located in Mermentau, Louisiana with easy access to the ports of Lake Charles, Houston and New Orleans," Ike Lynch, COO of NutraCea, stated. "The rice bran supply agreement with LRM is a strategic move for our Company. A production facility at LRM puts us in the heart of one of the most significant rice production areas in the US and gives us the ability to offer enhanced service and improved logistical support to our customers." Lynch went on to say, "We are most impressed with the management of LRM and look forward to a long term business relationship that is mutually beneficial and allows both companies to better serve their respective customers, both foreign and domestic."

About Louisiana Rice Mill
Louisiana Rice Mill, LLC is committed to delivering the highest quality US rice products for both export and domestic use.
Through its relationship with producers, LRM acquires only the highest grade US rough rice for its milling purposes. LRM's mill is located in the heart of the Southwest Louisiana Rice Belt in Mermentau, Louisiana. Southwest Louisiana is home to nearly 500,000 acres of prime rice producing land and boasts many of the best rice farmers in the US.
With easy access to the ports of Lake Charles, Houston and New Orleans, LRM is a premier exporter for US Long Grain rice on the Gulf Coast. LRM provides Hard Milled US Long Grain No. 2 Rice for shipment around the world and for domestic private label business.

LRM's administrative offices are located a short drive away from the mill in Crowley, Louisiana, also known as the "Rice Capital." Additionally, LRM has receiving, shipping and storage facilities in Eunice, Louisiana.

About NutraCea
NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. Through it's wholly owned subsidiary RiceX, the company manufacturers as well as distributes products and food ingredients made from Rice Bran through its proprietary technology and processes. The Company has developed intellectual properties 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 wasted 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

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 matters 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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