Patented Stabilized Rice Bran Co. NutraCea News

NutraCea Completes Purchase of Irgovel, Largest Rice Bran Oil Processing Facility in South America

PHOENIX, Feb. 22 /PRNewswire-FirstCall/ -- NutraCea (OTC Bulletin
Board: NTRZ), a world leader in stabilized rice bran (SRB), nutrient
research and technology, announced today that it is has completed the
purchase of Irgovel, the largest rice bran oil processing facility in South
America, for a purchase price of approximately $14 million. The 70,000 ton
annual capacity facility located in Pelotas, Brazil provides NutraCea with
the opportunity to sell rice bran oil in addition to its entire portfolio
of patented and proprietary stabilized rice bran and stage two derivative
products into the Brazilian and global marketplace.

    NutraCea announced its intent to purchase the facility on February 4th
subject to certain closing conditions, which have now been satisfied. The
Company paid $14,080,000 for all of the outstanding equity interests in
Irgovel. In addition, the Company may provide capital to Irgovel as
necessary to fund approximately $5.3 million in installment payments owed
by Irgovel to the Brazilian government for deferred tax obligations. These
deferred tax amounts are payable over a period of 10 years.

    The 40 year old rice bran oil facility is the largest in South America.
Currently, the plant is operating at about one-third of its capacity.
NutraCea anticipates investing approximately $4 to $6 million to refurbish,
upgrade and install their proprietary equipment into the facility and
expects to complete this project by the end of this year.

    "When running at full capacity, we believe that the plant can generate
approximately $30 million in annual sales from the rice bran oil. As
previously announced, NutraCea will install its proprietary technology
during 2008 to improve the dynamics of the traditional rice bran oil
extraction business for the production of higher value-added derivative
products. We anticipate these new derivative products could result in
meaningful additional revenue, beyond what is stated above, beginning in
2009," said Leo Gingras, Chief Operating Officer of NutraCea.

    NutraCea has entered into marketing arrangements, which it believes
will allow the Company to sell the plant's current production capacity as
well as all future expanded production.

    Brad Edson, President and Chief Executive Officer of NutraCea said, "We
are extremely pleased to have completed this transaction, which is a
significant next step in our strategic growth plan to establish facilities
in leading rice bran producing regions of the world in order to further
grow our market presence and increase shareholder value."

    "We have spent a great deal of time in discussions with members of the
Brazilian government on many levels over the past two years and are most
appreciative of the positive reception that we have received and the co-
operation we have obtained," added Edson.

    "Pelotas is a recognized agro-industrial city in our country. I'm
confident NutraCea will help us increase this sector. Therefore, we are
very pleased that NutraCea has found us and come to be a part of our
economy," stated Dr. Adolfo Fetter Junior, Mayor of Pelotas, Brazil.

    Irgovel is located in the third largest city in the southern state of
Rio Grande do Sul with a population of approximately 350,000. NutraCea will
be one of the largest employers in the area and, as a major potential
contributor to the local economy, has been enthusiastically welcomed by
local, state and federal governments.

    About NutraCea

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

    Forward Looking Statements

    This release contains forward-looking statements, including, but not
limited to, statements regarding the successful operation and improvement
of the rice oil facility in Brazil and the market demand for the material
to be produced at the facility, all of which statements are subject to
market risks, and the possibility that NutraCea will not be able to
complete the plant modifications on a timely basis, to operate the plant
efficiently, or to obtain sufficient customer demand to utilize expected
production from the plant. These statements are made based upon current
expectations and actual results may differ from those projected due to a
number of risks and uncertainties. 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.

     Company Contact:
     Margie Adelman
     Senior V.P. NutraCea
     602-522-7551
     madelman@nutracea.com

     Investor Relations Contact:
     Marilynn Meek
     Financial Relations Board
     212-827-3773
     mmeek@frbir.com

s.server=server() s.channel=”news release” s.pageName=”news_release_nutracea completes purchase of irgovel, largest rice bran oil processing facility in south america” s.prop2=”104″ s.prop3=”02-22-2008″ /************* DO NOT ALTER ANYTHING BELOW THIS LINE ! **************/ var s_code=s.t();if(s_code)document.write(s_code); //–>

SOURCE NutraCea


2 thoughts on “Patented Stabilized Rice Bran Co. NutraCea News”

Comments are closed.