Tuesday May 4, 8:51 pm Eastern Time
Company Press Release
The RiceX Company Announces Preliminary Venture Agreement With Monsanto
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--May 4, 1999--The RiceX Company (OTC:RICX - news) announced today that it has signed an agreement to establish a preliminary joint venture (PJV) with the Monsanto Company (NYSE:MTC - news).
The purpose of the agreement is to determine the feasibility of commercializing the rice bran stabilization technology of The RiceX Company in India.
Under the terms of the agreement, The RiceX Company will send two stabilization systems and operating personnel to India to demonstrate the capability of the Company's proprietary technology. The demonstration period is expected to last approximately six months. Upon successful completion of the demonstration it is the intent of the parties to form a Joint Venture to stabilize abundant raw rice bran supplies in India which are currently being used as low grade animal feed.
Charles F. Hough, Business Development Head -- Nutrition and Consumer Sector for Monsanto, commented, ''We are keenly interested in expanding our activities in India. The RiceX technology could be a vehicle for the Monsanto Company to contribute significantly to the nutritional wellbeing of the people of India. We are excited with the prospects of converting a low value resource like raw rice bran into a stable and nutritious food source.''
Dan McPeak, Chairman and CEO of The RiceX Company, also commented, ''Currently there are nearly 10 million metric tons of rice bran available in India that could be stabilized via our technologies. Stabilization of the bran will lead to a series of nutritious value added food products for human consumption in India without the need to plant one more seed or harvest one more acre of rice. We are pleased to be associated with Monsanto in this venture. Monsanto brings significant capability to the project and enhances our chances for success.''
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 an nutritional profile demanded by most commercial users. |
