The RiceX® Company (OTC:RICX) announced today that it has entered into an exclusive sales and marketing agreement with NutraStar(TM), a privately held Nevada corporation engaged in the research, development, marketing, production, sales and distribution of ingredients, nutraceutical health foods and whole food dietary supplements.

The ten-year agreement provides NutraStar(TM) with an exclusive arrangement to purchase RiceX’s nutritionally dense ingredients and to market those products in the nutraceutical and human food market. The products will be purchased based upon the standard RiceX® price list.

In return, NutraStar(TM) has committed to purchasing a minimum of $34 Million of nutritionally dense products from RiceX® during the first 5 years of the agreement. The agreement requires NutraStar(TM) to purchase a minimum of $3.0 million worth of product the first year of the agreement, building to a minimum of $8.6 million in the fifth year, followed by 5% increases during years 6 through 10.

In consideration for granting the exclusive license, NutraStar(TM) has delivered to RiceX® a 10% ownership position in NutraStar(TM) and will pay a RiceX® a 2% royalty fee on all gross sales from all NutraStar(TM) products.

NutraStar has hired certain marketing, scientific and technical employees of RiceX® to support its sales and marketing programs. Ongoing RiceX research projects, quality control and analytical work will continue to be performed by these employees on a “shared resources” basis thus reducing RiceX’s annual overhead costs by $500,000.

Dan McPeak, Sr., Chairman and CEO of The RiceX® Company, stated, “The agreement with NutraStar(TM) is an important strategic move for the RiceX® Company. We believe that NutraStar(TM) will be abundantly successful in marketing to the health food and nutraceutical industry because of the years of marketing experience and knowledge of RiceX®’s products that they bring to the table. RiceX® management can now expand on its production and marketing capabilities in the equine and companion feed market segments where growth opportunities are substantial. Additionally, RiceX® management will take a more aggressive role in capitalizing on international opportunities utilizing the RiceX® proprietary technology for stabilizing rice bran.”

Patricia McPeak, Chairman and CEO of NutraStar(TM), commented, “NutraStar(TM) is excited about the opportunity to develop and market RiceX®’s therapeutic ingredients and to develop delivery systems that make the products more convenient and easier to use. It’s a “win-win” situation for both companies,” she stated. “NutraStar(TM) has the exclusive right to develop products for the nutraceutical market. This will increase the sales of RiceX®’s ingredients by increasing the awareness of their importance in creating wellness and treating nutritionally induced disorders. NutraStar(TM) is in the process of initiating clinical trials at institutions such as U.C.L.A./Harbor Medical Center to demonstrate the therapeutic effects of these products in a wide array of diseases.”

About The RiceX® Company

The RiceX® Company manufactures and distributes nutritionally dense foods and food ingredients made from its stabilized rice bran that add significant nutritional benefits to food and consumer products. The company believes it is the only company in the world that can deliver rice bran products derived from rice bran with the shelf life and nutritional profile demanded by most commercial users.

About NutraStar(TM)

NutraStar(TM) is a Nevada Corporation formed to engage in the development, distribution, sale and clinical testing of nutraceutical products involving nutritionally dense ingredients. Nutraceuticals are food-derived substances that deliver medical and pharmacological benefits. NutraStar(TM) is fully funded by third party sources and is managed by Patricia McPeak as Chairman and CEO. Mrs. McPeak resigned her position as President of The RiceX® Company, with approval of the RiceX® Board, to energetically pursue the nutraceutical and natural whole food markets on a full-time basis. NutraStar plans to market RiceX® products and other nutraceutical products through direct sales via internet channels and through global health organizations for specific health applications such as cardiovascular health, diabetes control, free radical intervention and increasing energy and endurance in performance athletes.


Safe harbor statements under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of the competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the company’s filings with the Securities and Exchange Commission.