NutraCea Announces Phase II Expansion of Dillon, Montana Plant

EL DORADO HILLS, Calif., Feb 20, 2007 /PRNewswire-FirstCall via COMTEX/ -- NutraCea (NTRZ) announced today a phase II expansion of its Dillon, Montana plant by 50%, with the intention of increasing total production capacity to 2700 tons annually from the original 900 tons when the first phase expansion efforts began in February, 2006.

"Last February, we announced plans for a 100% expansion of our capacity to produce NutraCea Solubles and Fiber Concentrate at our Dillon plant. The expanded facilities went on line in the 4th quarter of 2006 and were completed under budget. The project included two new major equipment additions, which doubled the production capacity at the plant and the addition of a new process building capable of handling additional production. In an effort to further increase rice bran derivative production capacity earlier than through our announced Louisiana II project, currently scheduled for completion in the second half of this year, we are in the process of installing process and drying equipment at the Dillon plant. This phase II expansion is intended to increase production by another 50% of existing installed capacity, and to bring our production capacity from 1,800 tons per year to 2,700 tons per year, and is projected to be completed in the second quarter of 2007. Key equipment contracts have been awarded and equipment has been delivered with construction now underway. The Company has the existing financial liquidity from cash on hand to complete the expansion," said Ike Lynch, COO of NutraCea.

"Strong market interest in our proprietary stabilized rice bran derivatives has prompted our desire to further increase manufacturing capability and the plant expansion is consistent with our goal of meeting growing customer demands and awareness of our products' values. This accelerated initiative to increase our manufacturing capacity is intended as an efficient and economical means of boosting capacity on a rapid basis," added Margie Adelman, Senior Vice-President of NutraCea.

About NutraCea
NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. Through its 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 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 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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