NutraCea Announces Reduction in Workforce in U.S. Operations

PHOENIX, Jan. 15 /PRNewswire-FirstCall/ -- NutraCea (OTC: NTRZ), a world leader in stabilized rice bran (SRB) nutrient research and technology, today announced a 17% reduction in its U.S. workforce as part of management's continuing efforts to improve the company's cost structure. The reduction, which is anticipated to save NutraCea approximately $1 million annually, does not impact the workforce at Irgovel, NutraCea's Brazilian subsidiary.

W. John Short, Chairman & CEO of NutraCea, said, "We deeply regret having to make this difficult but necessary decision as we continue to restructure the Company.  Our goal continues to be to reduce costs and increase profitable sales in an effort to enhance our liquidity and become cash flow positive in the second half of 2010."  Short added, "I want to thank the employees affected by this reduction for their dedication and efforts on behalf of NutraCea and wish them the best in their future endeavors."

On November 10, 2009 NutraCea filed for court supervised protection to restructure its operation under Chapter 11 of the US Bankruptcy Code.

About NutraCea

NutraCea is a world leader in production and utilization of stabilized rice bran. NutraCea holds many patents for stabilized rice bran (SRB) production technology and proprietary products derived from SRB. NutraCea's proprietary technology enables the creation of food and nutrition products to be unlocked from rice bran, normally a waste by-product of standard rice processing. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.NutraCea.com.

Forward-Looking Statements

This release contains forward-looking statements, including statements regarding the anticipated savings from the company's reduction in force, other actions to reduce the company's costs, increase liquidity and increase profitable sales, and the efforts of the company to become cash positive in the second half of 2010. Actual results may differ from those projected due to a number of risks and uncertainties, including, but not limited to the possibility that some or all of the pending matters considered by the Company may not proceed as contemplated and 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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