EL DORADO HILLS, Calif., Jan. 21, 2004 (PRIMEZONE) -- NutraCea (OTCBB:NTRZ), a leading nutraceutical research and development company, announced today that its preliminary unaudited third and fourth quarter revenues for the six-month period ending December 31, 2003 increased by 119% to $999,452 from $456,130 for the corresponding period in 2002.
"We are very pleased to announce the continued growth in our revenues. However, it is important to remember that these numbers represent our past performance. They do not take into account the significant progress we have recently made, nor do they reflect our future potential. We are launching new products that address specific human diseases including diabetes, arthritis, high cholesterol and liver disease. We are also creating strategic relationships with companies with existing distribution channels. This should enable us to bring our products to market on a massive scale," says John Howell, President of NutraCea.
Each one of these diseases represents a multi-billion dollar industry of its own. The total economic cost of diabetes was estimated to be $132 billion in 2002. $16 billion was spent on arthritis drugs. And, cholesterol lowering drugs have recently become blockbusters as well - Pfizer's (NYSE:PFZ) Lipitor accounts for about half of the cholesterol reducing statin market in the US, a $15 billion market worldwide.
"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 has recently entered into a strategic relationship with Salton, Inc. and W.F. Young to potentially market its new anti-inflammatory products including a topical cream and an internal capsule for joint and muscle pain relief, through TV infomercials. Salton is the company behind such successful infomercials as the George Foreman Lean Mean Grilling Machine and the Juice Man juicer.
NutraCea's business model is based on the development of proprietary, patented, revolutionary nutraceutical products. The company's core expertise is in original research and product development, as well as in its capacity to swiftly demonstrate the safety and efficacy of its nutraceutical products for humans and animals. NutraCea is in the process of expanding its business model of entering into strategic alliances with powerful wholesale and retail distribution and merchandising companies. This should allow the company to leverage its partners' merchandizing and marketing expertise to create a rapid market penetration for our breakthrough 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.
"It can take up to ten years and $500 million to take a new drug through the FDA process, without any guarantees that the drug will actually be approved. NutraCea, on the other hand, can bring its new products to market quickly, inexpensively and immediately when the product development and initial testing phases have been completed. To further enhance our competitive edge, we conduct extensive clinical trials and tests to determine the impact our products have on the human body and its ability to heal itself," states Howell.
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 also 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 prevent and treat various cardiovascular diseases by lowering 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.
To learn more about NutraCea's products, visit www.nutraceacorp.com. To sign up for shareholder alerts, visit http://www.nutraceacorp.com/ir_alerts.html or simply send an email to alerts@nutraceacorp.com.
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.