Unlocking The Nutritional Value of Rice Bran NutraCea May 4, 2010 Phil Sanders, Vice President of Sales Jerry Eggenberger, Vice President of Sales Gits Prabhu, PhD., Technical Consultant 1 Safe Harbor Statement Forward Looking Statements Safe Harbor - This document and presentation contain forward-looking statements including, but not limited to, statements regarding the Company’s anticipated production capacity, revenue and earnings. 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 document 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. 2 Company Overview Company NutraCea, Inc. (NTRZ.PK) Headquarters Scottsdale, AZ Business Engages in the development and distribution of food and nutraceutical products based upon its unique, proprietary process that stabilizes rice bran and other grains. Mission Creating value by transforming the world’s underutilized agricultural resources into nutritional foods and nutraceuticals. 3 Rice Bran Background Rice is the primary food source for over 70% of the world • Once milled, rice bran quickly becomes rancid and is unfit for human consumption • Raw rice bran is mostly sold as animal feed 8 - 10% of the rice kernel contains the majority of the nutritional value with many health benefits NutraCea’s foundation is its proprietary technology to stabilize rice bran • Approximately 60 million metric tons of raw rice bran is produced globally as a by-product of the milling process • With stabilization, this underutilized resource is now available for human consumption 4 Stabilizing Rice Bran – Production Process - USA 5 Domestic Operations Capacity utilization is subject to seasonal variances in supply and availability 6 RBO – Production Process / Defatted Rice Bran (Brazil) 7 International Operations With rice grown in over 100 countries, NutraCea had to look globally for the ideal location to process rice bran oil. Pelotas is the “heart” of South America’s rice growing region. This pristine geographical location enables us to produce the highest quality rice bran oil available. NutraCea has clearly perfected rice bran oil! 8 NutraCea Products USA: Stabilized RiBran RiBran RiBran Rice Bran 100 (Granular – 20mesh) 200 (Fine – 40mesh) 300 (Extra Fine – 60mesh) RiBalance - Enzyme treated rice bran RiSolubles - Water dispersible fraction RiFiber - Insoluble fiber fraction Brazil: Defatted Rice Bran Rice Bran Oil 9 NutraCea Products - Features All Natural (Excludes DRB & RBO from Brazil. Hexane extracted.) Gluten Free Lactose Free Hypoallergenic Low Glycemic Index Zero Trans Fat Zero Cholesterol Not Genetically Modified (Non-GMO) Nutrient & Antioxidant Rich 10 Quality Assurance GMP/HACCP Program American Institute of Baking Audited Kosher – Orthodox Union Certificate HALAL Certificate Extensive QA Testing: Microbiological Constituent Pesticides Heavy Metals 11 Markets Served 2008 Revenue 2007 Revenue Human Nutrition • Food • Nutraceutical 49% 42% 39% 35% Animal Nutrition • Equine Feed • Companion Pet Finished Products 3% • Cereals • Nutraceutical 17% 2009 Revenue Humanitarian Aid • Bulk Ingredient • Finished Products 2% 13% 20% 53% 27% 12 Human Ingredient Animal Nutrition Finished Foods Humanitarian Aid Market Segments / Channels of Distribution Food Ingredients 13 Market Segments / Channels of Distribution Nutraceuticals 14 Market Segments / Channels of Distribution Animal Nutrition 15 Rice Bran Ingredient Applications MEAT ENHANCEMENT: Meat Analogue Emulsified Coarse Ground BAKING: Pizza Crust Snack Crackers RTE Cereals Breads Tortillas NUTRACEUTICALS & SPORTS NUTRITION: Health Bars Beverages Joint Health Supplements Meal Replacements Fiber Supplements Muscle Mass Builder PASTA BABY CEREAL FRYING: Breading & Batters (Reduced Oil Uptake) 16 NutraCea Products NutraCea Products Suggested Use Benefits RiSolubles take 1 scoop per serving and mix with you choice of beverage twice daily nutritional source of soluble fiber, reduces blood sugar levels, energy boosting RiBalance take two scoops twice daily in beverage of choice contains 23% of total dietary fiber, provides energy RiFiber take two scoops twice daily in beverage of choice a highly nutritious soluble fiber. (Contains about 3% TDF) Rice Bran Oil for cooking applications Zero Cholesterol Zero Trans Fat Non-GMO Hypoallergenic Non-hydrogenated High flash point for extended life 17 NutraCea Ingredients NutraCea Ingredients Suggested Use Benefits Stabilized Rice Bran (SRB) Meat extensions, 3:1 water absorption alternatives to known allergens, baked goods, processed foods Stabilized, all natural process Defatted Rice Bran (DRB) Coating and breading systems Reduced fat content, reduces oil uptake in the frying process Crude Rice Bran Oil Alternative to fish oil, derived omega 3,6, and 9, plus Gamma Oryzanol Rice in antioxidants 18 Bran Comparison BRAN COMPARISON CHART Nutrient (Values/100g) Moisture (9g) Calories (kCal) Protein (g) Total Carbohydrates (g) Total Ash (g) Total Dietary Fiber (g) Soluble Fiber (g) Vitamin E Tocopherols Tocotrienols Vitamin B Complex B1 (mg) B2 (mg) B3 (mg) B5 (mg) B6 (mg) Total Carotenoids Total Sugars (g) Gamma Oryzanol Phytosterols (mg) Potassium (mg) Sodium (mg) Magnesium (mg) Calcium (mg) Iron (mg) Maganese (mg) Phosphorous (mg) Zinc (mg) Choline (mg) Inositol (mg) 1 NutraCea analyzed values 2 Source: USDA, http://www.usda.gov Stabilized Rice Bran Corn Bran (2) Oat Bran (2) Wheat Bran (2) 6 330 14.5 51 8.5 29 2 4.7 224 8.4 85.6 0.4 79 6.6 246 17.3 66.2 2.9 15.4 10 216 15.6 64.5 5.8 42.8 12 13.6 0.4 1 1.5 2.8 0.3 46.9 4.2 3.2 129.3 8 300 341.1 1573 8 727 40 7.7 25.6 1591 5.5 104.8 1496 0.01 0.1 2.7 0.6 0.2 1.2 0.2 1 1.5 0.2 0.5 0.6 13.6 2.2 1.3 0 1.5 0.4 44 7 64 42 2.8 0.1 72 566 4 235 58 5.4 5.6 734 3.1 1182 2 611 73 10.6 11.5 1013 7.3 19 Unlocking The Nutritional Value of Rice Bran NutraCea Gits Prabhu, PhD., Technical Consultant 20 Numerous benefits of using Rice Bran • Multi-functional ingredient for a wide variety of applications including but not limited to: • • • • Functional • • • • • • • • Meat Batter and breading coatings Soy, starch, mustard and other ingredient replacement Cook yield, texture and purge improvement Non-allergenic – gluten and lactose free Clean flavor All natural Oxidative stability Antioxidant and vitamin rich Economical, US origin USDA approved for meat products 21 Growth of health and wellness foods • All natural foods • Natural food must contain natural ingredients • • • No phosphates allowed No conventional nitrates/nitrites Limit on some antimicrobial ingredients 22 Food allergens • Each year, millions of Americans have allergic reactions to food. Although most food allergies cause relatively mild and minor symptoms, some food allergies can cause severe reactions, and may even be life-threatening. • There is no cure for food allergies. Strict avoidance of food allergens — and early recognition and management of allergic reactions to food — are important measures to prevent serious health consequences. 23 Symptoms of allergic reactions • Symptoms of food allergies typically appear from within a few minutes to two hours after a person has eaten the food • Allergic reactions can include: • • • • • • • • • • Hives Flushed skin or rash Tingling or itchy sensation in the mouth Face, tongue, or lip swelling Vomiting and/or diarrhea Abdominal cramps Coughing or wheezing Dizziness and/or lightheadedness Swelling of the throat and vocal cords Difficulty breathing • Loss of consciousness 24 Food allergens Soybeans • Isolates, concentrates, flour Milk • Whey isolates, concentrates, powder, non-fat dry milk Wheat Eggs • Egg albumin Fish • Bass, flounder, cod Crustacean shellfish • Crab, lobster, shrimp Tree nuts • Almonds, walnuts, pecans Peanuts 25 Food allergens Gluten Intolerance • ½ of one percent of the worlds population suffers from Celiac Disease • 15% of the worlds population is gluten intolerant, and would benefit from a gluten free diet • Performance Limiting Symptoms *include (but are not limited to): • Fatigue • Gastrointestinal distress • Headaches • Weight loss/gain • Inability to concentrate • Moodiness/depression • Bone/joint/muscle pain • Currently, the only known way to treat the condition is by eliminating gluten from the diet *Note – Taken from ”Gluten Freedom” 26 US labeling of allergens ALLERGEN INGREDIENT: ISOLATED SOY PROTEIN 27 Rice Bran – USDA/FSIS approval letter FINISHED PRODUCT LABEL READS: RICE BRAN June 23, 2008 USDA FSIS approved as a binder in comminuted meat and poultry products that permit the use of ingredients of this type (eg. sausage, nugget shaped chicken patties, meatballs, meatloaf and meat patties. 28 28 Application – Beef hot dogs • Meat replacement • Replacement of 3% beef 90’s and beef 50’s with 3% RiBran 100 • Mustard replacement • Replacement of 1.5% mustard with 3% RiBran 100 29 Hot dog - Texture 1000.00 885.73 900.00 807.69 800.00 713.32 700.00 677.72 661.86 722.16 600.00 500.00 400.00 300.00 200.00 100.00 0.00 Control 3% RiBran 100 Replacing Mustard Exterior Interior 30 3% RiBran 100 Replacing Meat Hot dog - Purge 4.00 3.47 3.50 3.11 3.00 2.88 2.84 2.75 2.43 2.50 % 2.91 2.44 2.39 2.00 1.50 1.00 0.50 0.00 Week 4 Control Week 8 Week 12 3% RiBran 100 replacing Mustard 40 3% RiBran 100 replacing Meat 31 Hot dog – Freeze-thaw purge 3.50 3.25 3.00 2.73 2.35 % Purge 2.50 2.00 1.50 1.00 0.50 0.00 Control 3% RiBran 100 replacing Mustard 40 32 3% RiBran 100 replacing Meat Frying application – Reduction in oil uptake • Replacement of wheat flour • • 5% - 20% replacement of wheat flour Predust, batter, breading 33 Frying application – Percent fat reduction 0.00 5% DRB -5.00 10% DRB 15% DRB 20% DRB -3.79 -10.00 % -10.91 -13.08 -15.00 -14.36 -16.38 -20.00 -21.73 -22.12 -25.00 -27.87 -30.00 Par Fried Fat Difference from Control (% ) Fully Cooked Fat Difference From Control (% ) 34 Frying application – Nutritional panel Control 5% DRB 10% DRB 35 15% DRB 20% DRB Unlocking The Nutritional Value Of Rice Bran • Rice bran provides an increase cook yield, improves texture, reduces purge and provides freeze-thaw stability in meat products • Rice bran can replace other ingredients such as soy protein or mustard while providing significant cost savings • Defatted rice bran provides a reduction in oil uptake resulting in a healthier products with lower fat and lower calories 36 RiBran Product Data Sheet 37 NutraCea Advantage -Summary • Abundant raw rice bran produced globally...only NutraCea has technology to stabilize for human consumption with a ONE YEAR SHELF LIFE GUARANTEE • USDA approved for inclusion of emulsified and coarse ground meats • Rice Bran Products are extremely versatile...meat inclusion, baking, pasta, baby cereal and nutraceutical applications • Rice Bran Products (excluding DRB & RBO) are (all natural, gluten free, hypoallergenic with zero trans fat) • Low cost highly functional ingredient that increases your margins and makes healthier products • Owns the Largest RBO Facility in South America – crude and refined RBO and value add products • NutraCea understands the commitment to product quality, which means high quality ingredients for your products 38 First Book on Stabilized Rice Bran Executive Advisor to NutraCea, Henk Hoogenkamp, author of many food ingredient publications, authors his latest book dedicated to the education and endless possibilities for the use of stabilized rice bran to enhance various applications. Together, Hoogenkamp and NutraCea continue to explore markets and applications for which rice bran is a natural fit. 39 Contact Information Phil Sanders, Vice President of Sales 6720 N. Scottsdale Road, Suite 390 Scottsdale, AZ 85253 Phone: Cell: eMail: 812.944.8443 812.202.9489 psanders@nutracea.com 40 Unlocking The Nutritional Value of Rice Bran Thank You! Phil Sanders, Vice President of Sales 41