EL DORADO HILLS, Calif., Dec. 16, 2003 (PRIMEZONE) -- NutraCea, (OTCBB:NTRZ), a leading nutraceutical research and development company, announced today it has entered into a strategic relationship with Salton, Inc. - a leading designer, marketer and distributor of branded, high quality small appliances, home decor and personal care products, and W. F. Young, Inc., the makers of the Absorbine and Absorbine Jr. line of products.
Salton, upon the successful completion of a second round of clinical comparison trials, will begin test marketing NutraCea's revolutionary anti-inflammatory products including, a topical cream and an internal capsule for joint and muscle pain relief, and will be jointly branded and distributed with W. F. Young, Inc. A home use trial was successfully conducted by Dr. Bradford Weeks, The Weeks Clinic, Washington, and the second trial will be conducted by Harvard's Dr. Tom Walshe. NutraCea has a pending patent application for which 17 claims have been allowed. It is anticipated that the campaign could commence during the second quarter of 2004. However, any delays in these underlying events would postpone the start of the campaign.
Salton is the company behind such blockbuster infomercials as the George Foreman Lean Mean Grilling Machine and the Juice Man juicer. If product tests adequately prove the health benefits of NutraCea's products, Salton will produce and test an infomercial for the purpose of selling NutraCea's products. Should the media test prove successful at Salton's sole discretion, Salton will agree to acquire exclusive retail marketing rights for these products.
"Initial research indicates that our products may actually provide positive health benefits for those who have some form of joint or muscle pain," says John Howell, President of NutraCea. "Active adults subject themselves to a variety of muscle and joint strains. Our goal is to provide a means to speed up recovery and relief of pain."
NutraCea's all-natural, stabilized rice bran based product was originally developed for rehabilitating debilitating joint degeneration in horses. NutraCea and W.F. Young, the manufacturer of Absorbine products, sponsored an extensive equine clinical trial, which demonstrated that NutraCea's products were superior to a pharmaceutical product as well as a nutraceutical glucosamine product for treating horses suffering from inflammation and lameness. NutraCea's initial tests indicate that the product works with humans as well, potentially providing major relief for anyone suffering from joint or muscle pain. In fact, the U.S. Patent and Trademark Office has recently issued NutraCea a patent allowance for treating inflammation and pain in mammals, including humans, horses, dogs and cats. All NutraCea's anti-inflammatory and joint pain relief formulations and products are based on the science underlying the patent.
The market size is staggering. Last year, over $16 billion was spent on joint pain relief drugs. It is estimated that this figure will increase to $21 billion by 2008. These numbers do not take into account the casual usage of over-the-counter pain killers or other remedies.
"Our nutraceutical products are safe, non-toxic and all-natural, which we believe may provide us with a competitive edge over traditional pharmaceutical solutions, such as COX-2 inhibitors that have been allegedly linked to several deaths since their FDA approval. We don't expect to become a serious challenger for existing pharmaceutical solutions. However, our goal is to become the market leader in the all-natural and non-toxic nutraceutical segment of the overall market," states Howell.
NutraCea's business model is based on the development of proprietary, patented and revolutionary nutraceutical products. NutraCea believes its business model is very similar to the model commonly utilized by the biotechnology industry. Unlike biotech companies, however, NutraCea doesn't have to go through the expensive, time-consuming and risky FDA approval process to bring its nutraceutical products to market.
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 through a major breakthrough in advanced extrusion technology. The joint and muscle pain relieving products are based on a stabilized rice bran derivative combined with a proprietary blend of various natural extracts.
Salton, Inc. is a leading designer, marketer and distributor of branded, high quality small appliances, home decor and personal care products. Salton's product mix includes a broad range of small kitchen and home appliances, tabletop products, time products, lighting products, picture frames and personal care and wellness products. The company sells its products under its portfolio of well recognized brand names such as Salton(r), George Foreman(r), Westinghouse(tm), Toastmaster(r), Melitta(r), Russell Hobbs(r), Farberware(r), Ingraham(r) and Stiffel(r).
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.