This Small Business Innovation Research Phase I research will demonstrate the feasibility of the development of a novel fermentation process for the release of phenolic compounds from rice bran. Rice bran is an underutilized co-product of rice processing and is a rich source of nutrients and phenolic acids that have a wide variety of nutritional and functional uses. Rice bran phenolics have been shown to have activity as antioxidants and cancer preventatives in a number of studies. Also, antioxidant capacity may allow rice bran phenolics to be added to foods as natural preservatives to prevent oxidation of lipids and loss of food quality. In the proposed patent-pending fermentation process, GRAS status microbes (generally regarded as safe) are used to produce the enzymes needed to release bound phenolics into solution. This phenolic extract will have a variety of nutritional and functional uses that will increase the value and usefulness of rice bran. One of the most appealing aspects of Nutraceutical Innovations' patent-pending rice bran fermentation process is that all co-products of the process will have value in the marketplace. The components of the phenolic extract will find value in new markets as nutraceuticals and functional food additives. Today's consumer is well aware of the benefits of a diet high in antioxidants and is becoming increasingly attracted to antioxidants from natural sources such as rice bran. Using Nutraceutical Innovations' novel fermentation process to release phenolic compounds from rice bran would provide the market with a natural and cost effective source of antioxidant and food preservatives