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Riceland Foods: Statement Regarding experimental GMO rice in harvest

Discovery of Material: Experimental GMO rice was discovered in January 2006 but not reported to the USDA until July.

Emphasized areas added by SLO GE Free.

August 18, 2006
4:30 p.m. (cst)

Any of the following information may be quoted and attributed to Bill  J. Reed, vice president for public affairs, Riceland Foods, Inc., Stuttgart, Ark.

Riceland Foods, Inc.
Riceland is a farmer-owned cooperative which markets rice produced by its 9,000 farmer-members in the Southern rice-producing states.  The cooperative marketed rice produced in 2005 by farmers in Arkansas, Missouri, Mississippi, Louisiana and Texas.

Discovery of Material
Genetically engineered material was discovered by a rice export customer in January.  (The name and location of our customer will not be released.)  The customer contacted Riceland asking for an explanation.
    
As part of its due diligence effort, Riceland sent a sample from the customer and a retained Riceland sample to a U.S. laboratory which tests for genetically engineered material.

The samples tested positive for Bayer’s herbicide-resistance trait which was known to be present in corn, soybeans, canola and cotton.

Since there is no known commercial U.S. production of genetically engineered rice, Riceland suspected the material would be identified as residual fragments of genetically engineered corn or soybeans resulting from use of common public transportation systems.  Due to the minute quantities of genetically engineered DNA present, the laboratory was unable to determine its origin.

In an effort to clarify the issue, Riceland in May collected samples of rice from several grain storage locations.  A significant number tested positive for the Bayer trait. The positive results were geographically dispersed and random throughout the rice-growing area.

Bayer Contacted
Bayer was contacted in early June when Riceland became suspicious that the discovery was a Bayer genetically engineered event in rice.

Riceland provided Bayer with a rice sample and asked Bayer officials for an explanation of the results. In late July, Bayer confirmed the positive results for its herbicide-resistance trait at a 0.06 percent (six hundredths of one percent) level, the equivalent of 6 kernels in 10,000 kernels of  rice.

Bayer also said that it was a regulated genetically engineered event and that Bayer was legally required to report its findings to USDA officials within 24 hours.

Involvement with USDA
USDA officials began their investigation August 1.  Riceland has
cooperated fully with USDA requests for information in an effort to resolve the situation, and will continue to do so.
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