Could Rice Heal Diabetes? NutraCea Launches a Nationwide Campaign to Educate Healthcare Professionals.

Business Editors/Health/Medical Writers

EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Jan. 9, 2004

NutraCea (OTCBB:NTRZ), a leading nutraceutical research and development company, announced today that it will launch a nationwide diabetes initiative later this month. The company intends to start a media relations campaign to educate healthcare professionals about the revolutionary health benefits the company's stabilized rice bran derivatives may provide for diabetes patients.

29 million Americans either already have diabetes or are well on their way toward getting it. The World Health Organization believes that the number of people suffering from type 2 diabetes may reach 250 million people by 2010. In addition to human suffering, diabetes has become a burden on our economy. The total economic cost in 2002 was estimated to be $132 billion. Popular insulin drugs, such as Eli Lilly's (NYSE:LLY) Humalog and Humulin and Bristol-Myers Squibb's (NYSE:BMY) Glucophage, generate billions of dollars in annual sales.

The global anti-diabetic market in 2002 was estimated to be $12.4 billion. Growth in the market has been driven by the continued expansion of the insulin market, because of the increasing number of type 2 diabetes patients being treated with insulin. However, the recent research proves that certain natural products, including NutraCea's stabilized rice bran derivatives, can significantly reduce the need for diabetes medication.

"According to double-blind, cross-over clinical studies, the results of which were peer-reviewed and published in the Journal of Nutritional Biochemistry, our RiSolubles(R) and RiceMucil(R) stabilized rice bran derivatives have been demonstrated to help the body lower blood glucose levels in both type 1 and type 2 diabetes patients," says Patricia McPeak, CEO of NutraCea.

"One out of four diabetes patients were able to lower their daily dosage of medication by 30% to 60% just by adding RiSolubles and RiceMucil to their daily diet. In 60 days, both type 1 and 2 diabetes sufferers were able to lower their blood sugar levels by 30% and 20%, respectively. Most healthcare professionals are completely unaware of this and may actually continue recommending prescription drugs even when not absolutely necessary. That is why we are launching a nationwide campaign -- we want to educate physicians as to the benefits of using this new and exciting treatment option," continues McPeak.

NutraCea received major attention in California last month when Dr. Ernie Bodai, one of the leading surgeons at Kaiser Permanente Medical Center in Sacramento and one of the most charismatic leaders in the fight against breast cancer, endorsed NutraCea's products. In an article published in the Sacramento Bee, Bodai stated that he was impressed after witnessing an acquaintance debilitated by lupus regaining her vitality after using NutraCea's products for three months. He also said that you would never catch him on an infomercial saying that a rice bran product cures breast cancer, but that you could see him on an infomercial stating that NutraCea's stabilized rice bran products help stabilize blood glucose levels.

Even though Bodai's endorsement appeared only in a local newspaper, NutraCea's weekly sales skyrocketed and the company's weekly sales reached a new all-time record, demonstrating a strong correlation between media coverage and sales revenues.

"Our nationwide diabetes initiative will be based on an aggressive media relations program. By educating the marketplace we should be able to not only provide relief for potentially millions of people suffering from diabetes, but significantly boost our revenues in the process as well," says McPeak.

NutraCea's breakthrough nutraceutical products consist of stabilized rice bran derivatives. Rice bran is the most potent source of phytonutrients and antioxidants found in any food today. Unfortunately, it has been unusable for human consumption in the past because an enzyme in the brown rice kernel renders the bran rancid within hours of milling. NutraCea's products retain the vital nutrients of rice bran in a uniquely bioavailable form due to a major breakthrough in advanced processing technology. The company has subsequently launched a wide variety of nutraceutical products based on stabilized rice bran.

NutraCea has conducted scientific research to discover how the nutrients in its products help the human body heal itself. The results from limited clinical trials are astonishing: the company's products may provide significant relief for type 1 and type 2 diabetes by lowering blood glucose levels. They may also provide a nutritional solution to prevent and treat various cardiovascular diseases by lowering LDL cholesterol, triglyceride and apolipoprotein B levels. NutraCea's products may also help the body maximize health by normalizing weight and metabolism as well as enhancing liver and immune functions.

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. 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.