Feb 14, 2006 /PRNewswire-FirstCall via COMTEX/ -- NutraCea (NTRZ) announced today an initiative to expand their Dillon, Montana plant to increase production capacity to meet the growing market demand for its products made from stabilized Rice Bran derivatives.
"Since the NutraCea/RiceX merger closing a few months ago, the Company has been consistently utilizing at or close to 100% of the manufacturing capacity of its Dillon, Montana facility. This represents an increase of daily average production during the period following the closing of the merger by more than 400% when compared to the average daily production capacity during the 9 months prior to the merger. The Dillon facility expansion, which is being fast tracked by the Company, is anticipated to be completed during the 2nd quarter of this year, and should result in more than a 50% increase in production capability of our Stabilized Rice Bran derivative products. Building and key equipment contracts have been awarded with construction now underway. The Company has the existing financial liquidity from cash on hand and current cash flow to complete the expansion," said Ike Lynch, COO of NutraCea.
"Strong market interest in our proprietary stabilized Rice Bran derivatives has prompted the need for increased manufacturing capability and is consistent with our goal of meeting growing customer demands and a new awareness of our products' value. This accelerated initiative of immediately broadening our manufacturing capacity is the most efficient and economical means of boosting capacity as quickly as possible to meet the increasing demands of the marketplace," added Margie Adelman, Senior Vice-President of 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 http://www.NutraCea.com .
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.