EL DORADO HILLS, Calif., Jun 8, 2004 /PRNewswire-FirstCall via COMTEX/ -- NutraCea (NTRZ), a leading nutraceutical company whose products are based on proprietary stabilized rice bran and its derivatives, announced today that it has signed a licensing agreement with Nussentials, Inc. -- a Houston- based company focusing exclusively on marketing nutraceutical products utilizing the Direct-to-Consumer (D2C) business model. The deal represents estimated revenues of $5 million over the course of the next two years.
According to the agreement, NutraCea will provide Nussentials with six different products, which Nussentials will then market directly to consumers utilizing an extensive distribution network that it will build exclusively for this purpose. The first products should be shipped to consumers during the third quarter of 2004.
"After our six-month-long new product evaluation process, we came to the conclusion that NutraCea's stabilized rice bran derivatives have the potential of becoming the next blockbuster product line in the nutraceutical market. We feel that by marrying their product line with one of the most aggressive compensation models in the D2C industry, we could quickly make our NutraCea manufactured private label brand a household name. Based upon conservative estimates, we believe we will purchase up to $5 million worth of NutraCea products within the first 18-24 months," says Dean Morgan, spokesperson for Nussentials, Inc.
"Our business model is based on entering into strategic alliances with powerful wholesale and retail distribution and merchandising companies. This allows NutraCea to leverage its partners' marketing expertise and existing distribution channels to rapidly penetrate the market. This business model is very similar to that which is commonly used by leading biotechnology companies, which license their breakthrough drugs to pharmaceutical companies," says John Howell, President of NutraCea.
We are excited about our relationship with Nussentials. If Nussentials' internal estimates on initial order amounts are accurate, this license agreement has the potential of having a substantially positive impact on our profitability for 2004 and 2005," states Howell.
NutraCea (NTRZ) is focused on becoming the world's leading nutraceutical company through the development and distribution of its proprietary stabilized rice bran "super foods," natural arthritic relief products for humans and animals and "all natural" cosmeceuticals and beauty aids. The company is headquartered at 1261 Hawk's Flight Court, El Dorado Hills, California 95762.
The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward- looking statements speak only as of the date hereof. Actual sales of products may differ or vary from estimates as per the statements herein. The company disclaims any intent or obligation to update these forward-looking statements.
FDA Health Disclaimer: NutraCea's product-related statements have not been evaluated by the Food and Drug Administration. The company's products are not intended to diagnose, treat, cure or prevent any disease. Consult your physician before using any nutraceutical products.