November 18, 2010

Crop Traditionally Grown in the U.S. to Produce Grain Will Supply Fiber as the Foundation for the First
Sustainable Complement to Cotton

PORTLAND, OR, Nov. 18 /PRNewswire/ – With cotton prices skyrocketing and demand
for the fiber exceeding current supplies, textile and garment
manufacturers are rushing to find ways to cut costs by reducing their
dependence on “the fabric of our lives” — including blending synthetics
into the mix.

Naturally Advanced Technologies Inc., (OTCBB:  NADVF, TSXV: NAT), the
developers of the proprietary CRAiLAR(R) process, announced today it has
a potential solution: a new, natural fiber derived from flax that can
be blended with cotton to decrease production costs without the use of

“Everyone in these industries is aware of the negative impact high
cotton prices is having, and will most likely continue to have, on
their bottom line and on their consumers” said Ken Barker, CEO of
Naturally Advanced Technologies. “There’s a problem, and people are
speculating about how to solve it. A logical response is to blend
cotton with other fibers to bring costs down. CRAiLAR flax is a
cost-effective choice that won’t force consumers to sacrifice cotton’s
desirable qualities.”

Like cotton, CRAiLAR flax is soft, breathable and comfortable to wear
and is well-suited for knit garments like T-shirts, sweaters, hosiery,
denim jeans and work wear. Flax is a sustainable, Earth-friendly crop
that requires no irrigation and little or no chemical fertilizers and
pesticides. It’s also cost-effective and commercially viable, costing
less per pound to produce than cotton.

The all-natural, 100%-organic CRAiLAR process — the first to
successfully remove the binding agents from flax that contribute to its
stiff texture — bathes flax fibers in a proprietary enzyme wash that
transforms them into soft, yet strong and durable textile fibers that
can be used in both fashion and industrial applications. Fibers made
through the CRAiLAR process are plush and have most desirable virtues
of cotton, combined with the strength, moisture-wicking properties and
shrink-resistance of sturdy bast fibers like flax. NAT’s recent trials
have proven that CRAiLAR flax can be spun on existing machinery to
produce a yarn that can be used alone or blended with cotton and other

“Flax grown in the U.S. and Canada is currently limited to producing
grain for human consumption and for use in industrial oils, livestock
feed and personal-care products,” Barker said. “We predict that these
crops will soon be overshadowed by a new fiber-producing flax crop
poised to revolutionize the garment and textile industries. Naturally
Advanced Technologies is behind that strategic shift.”

NAT has secured a 40,000-square-foot facility in Kingstree, S.C. to use
for an initial, scale-up facility in which to produce CRAiLAR flax. The
property is housed near 300 acres of flax crops, enabling the company
to oversee the entire process, from cultivation to the finished
product. Flax is a winter crop in South Carolina that rotates well with
cotton, soybeans and tobacco, allowing farmers there to double-crop
their land and increase their revenues exponentially.

NAT has already successfully transformed hemp fibers into yarns and
fabrics with the sought-after qualities of cotton using the CRAiLAR
process. The company’s new strategic shift to use flax fibers is
expected to change the face of the garment and textile industries as
they find ways to cope with this challenging phase.

“The benefits of cultivating flax for fiber are enormous in terms of
sustainability, revenue-earning opportunities, cost-effectiveness and
the high quality of the end-result,” Barker said. “CRAiLAR flax is the
perfect complement to cotton. We see it as the potential solution to
this global crisis — one that will allow these industries to reduce
costs without compromising the quality of their products.”

For more information on the patented CRAiLAR process and Naturally
Advanced Technologies Inc., visit www.naturallyadvanced.com.

About Naturally Advanced Technologies Inc.

Naturally Advanced Technologies Inc. is committed to unlocking the
potential of renewable and environmentally sustainable biomass
resources from hemp and other bast fibers. The Company, through its
wholly owned subsidiary, CRAiLAR((R)) Fiber Technologies Inc., is developing proprietary technologies for
production of bast fibers, cellulose pulp, and their resulting
by-products, in collaboration with Canada’sNational Research Council
and the Alberta Innovates – Technology Futures (formerly the Alberta
Research Council). CRAiLAR((R)) technology offers cost-effective and environmentally sustainable
processing and production of natural, bast fibers such as hemp and
flax, resulting in increased performance characteristics for use in
textile, industrial, energy, medical and composite material
applications. The Company was founded in 1998 as a provider of
environmentally friendly, socially responsible clothing and adheres to
a “triple bottom line” philosophy, respecting the human rights of
employees, the environmental impact of the Company’s operations and
fiscal responsibility to its shareholders. See www.naturallyadvanced.com

Neither the TSX Venture Exchange Inc. nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this

Forward-Looking Statement Disclaimer

This news release includes certain statements that may be deemed
“forward-looking statements”. All statements in this news release,
other than statements of historical facts, are forward-looking
statements. Forward-looking statements or information are subject to a
variety of risks and uncertainties which could cause actual events or
results to differ from those reflected in the forward-looking
statements or information and including, without limitation, risks and
uncertainties relating to: any market interruptions that may delay the
trading of the Company’s shares, technological and operational
challenges, needs for additional capital, changes in consumer
preferences, market acceptance and technological changes, dependence on
manufacturing and material supplies providers, international
operations, competition, regulatory restrictions and the loss of key
employees. In addition, the Company’s business and operations are
subject to the risks set forth in the Company’s most recent Form 10-K,
Form 10-Q and other SEC filings which are available through EDGAR at www.sec.gov. These are among the primary risks we foresee at the present time. The
Company assumes no obligation to update the forward-looking statements.

SOURCE Naturally Advanced Technologies Inc.

Source: newswire

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