EL DORADO HILLS, Calif.--Dec. 10, 2002--
Agreement with El Salvador's Ministry of Education Yields
Approximately $1 Million in Revenue
The RiceX Company (OTC:RICX), a leading manufacturer of highly nutritious functional food ingredients derived from rice bran, today announced that El Salvador's Ministry of Education in San Salvador has purchased 196,000 pounds of RiceX Solubles for use in a school nutrition program. The agreement, which follows a similar program completed in Guatemala in 2001, will result in revenues of approximately $1 million for RiceX.
"This agreement came together after extensive discussions with the Ministry of Education about the best nutritional options for El Salvador's school children," said Ike Lynch, vice president of operations and international business development for The RiceX Company. "We're very pleased that the Ministry recognized the significant benefits RiceX's highly nutritious Solubles product will provide."
The Ministry of Education will use RiceX Solubles in a proof-of-concept program to supplement the daily nutrition of 41,666 school-age children during 142 school days in 2003. RiceX Solubles will be mixed with water and flavorings at each school and given to the children as a mid-morning drink. Goals for the program include improving the nutritional well-being, health, attention and scholastic achievement of the school children.
A similar program in Guatemala in 2001 resulted in marked nutritional improvement among the 66,000 school children who received the RiceX Solubles nutritional drink, according to the Christian Children's Fund, which coordinated the Guatemalan program. Like the Guatemalan agreement, the agreement announced today was reached with the assistance of the US Department of Agriculture's Foreign Agricultural Service (FAS).
"This is a significant transaction for our company," said Daniel McPeak, Jr., senior vice president and general manager of RiceX. "While our domestic market revenues have increased by a healthy rate in the first nine months of this year, this agreement demonstrates continued business development in Central America. We are pleased to add to our relationships in the region and look forward to continued growth in our international business."
About the RiceX Company
RiceX manufactures highly nutritious functional food ingredients derived from rice bran. Using proprietary technology, RiceX stabilizes rice bran while preserving its all-natural nutrients, enabling the company to offer some of the most nutritious functional food ingredients on the market today. RiceX is the only company producing stabilized rice bran products with the nutritional profile required by most commercial users and a guaranteed one-year shelf life. A public company, RiceX is traded on the NASDAQ OTC under RICX. More information about the company can be found on the Internet at www.ricex.com.
`Safe harbor' statements under the Private Securities Litigation Reform Act of 1995: 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 raw 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.