RiceBran Technologies : Reports Q3 2017 Financial Results, Provides Business Updates

Sacramento, Ca. - November 9, 2017 - RiceBran Technologies (NASDAQ: RIBT and RIBTW) (the 'Company' or 'RBT'), a global leader in the production and marketing of value added products derived from rice bran, announced today the Company's financial results for the third quarter ended November 9, 2017.

Business Highlights

• Sales growth of 6% was driven by strength in Animal Nutrition
• Gross profit margin rate increased nearly 800 basis points to 33.1%
• SG&A expenses reduced by over 20% year-over-year
• Multiple actions have substantially improved balance sheet: more cash, U.S. debt virtually eliminated, and shareholders' equity totaled over $12,000,000
• Progress on short- and long-term strategic initiatives
• Focus shifting to growing business and improving adjusted EBITDA performance

Sacramento, Ca. - November 9, 2017 - RiceBran Technologies
(NASDAQ: RIBT and RIBTW) (the 'Company' or 'RBT'), a global leader in the production and marketing of value added products derived from rice bran, announced today the Company's financial results for the third quarter ended November 9, 2017.

'This was an active quarter for RiceBran Technologies, and I am pleased with the progress we are making in many areas,' said Dr. Robert Smith, Chief Executive Officer. 'We were able to deliver an improving sales growth rate, and our continued strategic effort to manage costs and expenses delivered demonstrable benefits.'

'During the third quarter we made substantial progress on building a stronger balance sheet for RiceBran Technologies. The sale of our Healthy Natural business in July helped to increase our cash levels, and improved shareholders' equity while allowing us to virtually eliminate debt in our U.S. operations,' Dr. Smith added. 'Continental Grain, a leading investor in food and agribusiness companies, invested in RiceBran Technologies in September, further boosting our balance sheet. We are pleased with our major efforts to improve the balance sheet of the company in 2017 and we continue to evaluate exit strategies for our Nutra SA investment in Brazil. While we remain committed to achieving further operational improvements, we are increasingly focusing management's time on growing the business as we are confident scale will lead to a profitable RiceBran Technologies.'

Third Quarter Results

Revenue of $3,445,000 in the 2017 third quarter was up 6% from $3,249,000 in last year's third quarter, with Animal Nutrition product revenue showing solid growth of 13%, while revenue from Food products was up 1%, hampered by weak orders from Specialty Ingredients customers. New customer wins included the addition of a new and respected distributor, our inclusion in a new gluten-free product hitting shelves this December and our first orders from a Companion Animal customer in September.

Gross profit margin in the 2017 third quarter improved by almost 800 basis points to 33.1% from 25.1% in last year's third quarter, with a 6% increase in production helping absorption, raw bran prices decreasing year-over-year and benefitting from an ongoing focus on reducing costs.

SG&A expenses declined over 20% in the third quarter of 2017. Payroll was a major contributor to this, as we achieved run rate reduction over 14% in operations payroll when compared to the prior year same period. Offsetting this comparison were large severance expenses associated with the departure of a former employee in last year's third quarter. Marketing expenses decreased 93% for the quarter, and travel and entertainment expenses decreased 28% from the prior year same period levels.

Our 2017 third quarter loss from operations improved to $(1,355,000) from $(2,325,000). We reported net income to shareholders of $3,299,000 in the third quarter of 2017 compared to a loss of $(1,080,000) in last year's third quarter. The largest factors affecting our net income in the 2017 third quarter - excluding operating loss - were a loss of $(6,610,000) on the extinguishment of our U.S.-debt, an income tax benefit of $4,121,000 related to the accounting for the sale of Healthy Natural and income from discontinued operations, net of tax, of $6,706,000. We reported adjusted EBITDA of $(922,000) versus $(1,228,000) in last year's third quarter.

Balance Sheet Highlights

RiceBran Technologies ended the 2017 third quarter with cash and cash equivalents of $8,187,000 and restricted cash of $775,000, with almost all U.S.-based debt having been eliminated. Shareholders' equity of $12,392,000 was up from $6,860,000 on June 30, 2017, and compared to $(632,000) on December 31, 2016. These improvements were primarily driven by the sale of Healthy Natural for $18,300,000, a private placement of 2,654,732 shares of common stock with Continental Grain for approximately $2,900,000 and the termination of roll-up rights held by the minority partner in Nutra SA that enabled the reclassification of certain warrants as equity rather than a liability. During the quarter we also issued 103,008 shares as a result of warrant exercises and 2,111,188 shares as a result of conversions of preferred stock into common stock. We ended the quarter with 16,551,350 shares of common stock outstanding.

Conference Call Information

RiceBran Technologies will host a conference call today, Thursday, November 9, at 4:30 p.m. Eastern Time to discuss these results. The conference call information is as follows:

• Direct Dial-in number for US/Canada: [phone]
• Toll Free Dial-in number for US/Canada: [phone]
• Dial-In number for international callers: [phone]
• Participants will ask for the RiceBran Technologies Q3 2017 Financial Results Call

This call is being webcast by ViaVid and can be accessed athttp://public.viavid.com/index.php?id=127235.
The call will also be available for replay by accessinghttp://public.viavid.com/index.php?id=127235.

About RiceBran Technologies

RiceBran Technologies is a food, animal nutrition, and specialty ingredient company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. RiceBran Technologies has proprietary and patented intellectual property that allows us to convert rice bran, one of the world's most underutilized food sources, into a number of highly nutritious food, animal nutrition and specialty ingredient products. Our global target markets are food and animal nutrition manufacturers and retailers, as well as specialty food, functional food and nutritional supplement manufacturers and retailers. More information can be found in the Company's filings with the SEC and by visiting our website at http://www.ricebrantech.com.

Forward-Looking Statements

This release contains forward-looking statements, including, but not limited to, statements about RiceBran Technologies' expectations regarding the impact of scale on its profitability, the dates of which products will be offered for sale, the sufficiency of its cash position and working capital, its use of cash, the addition of sales personnel, the divestment of its investment in Nutra SA, its business plans and its future growth, its revenue and adjusted EBITDA and the influence of revenue on adjusted EBITDA. These statements are made based upon current expectations that are subject to known and unknown risks and uncertainties. RiceBran Technologies does not undertake to update forward-looking statements in this news release 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 RiceBran Technologies' filings with the Securities and Exchange Commission, including its most recent periodic reports.

Investor Relations Contact:

Ascendant Partners, LLC

Richard Galterio
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