CRAILAR RECEIVES FIRST RETAIL PARTNER ORDER; VENDOR, RETAIL INTRODUCTION PLANNED FOR SPRING 2013

18 July, 2012

CRAiLAR Flax to be Introduced in Domestic Goods

Victoria, B.C. and Portland, Ore. (July 18, 2012) - Naturally Advanced Technologies Inc. (“NAT” or the “Company”) (TSXV: NAT) (OTCBB: NADVF), which produces and markets CRAiLAR®, a natural fiber made from flax and other bast fibers, announced it has commenced delivery of an initial 100,000 pounds of fiber to retail partner Target’s designated vendor. It will be introduced in domestic goods available at retail in Spring 2013. The original agreement, announced December 1, calls for two years of exclusivity in the category, and for Target’s evaluation of CRAiLAR Flax in a number of products including sheets, top of bed, shower curtains, window treatments, table linens, decorative pillows, towels, and more.

“Target has been an exemplary partner – quick to identify the performance characteristics of CRAiLAR, and collaborative about developing an ingredient brand strategy that makes sense for its product line,” said Ken Barker, Chief Executive Officer, Naturally Advanced Technologies. “We believe this partnership and its retail execution will set a strong benchmark going forward for how we would like to see our go to market strategy executed.”

Target is the first vertically integrated retailer to partner with NAT, which will allow the companies to quickly develop product and marketing strategies aligned with their priority of tapping into consumer demand for sustainability. 

NAT today supplies its CRAiLAR Flax to HanesBrands, Georgia-Pacific, and Brilliant Global Knitwear for commercial use, and to Levi Strauss & Co., Cintas, Carhartt, Ashland, Westex, Target and PVH Corp for evaluation and development. NAT is in construction on its first full-scale production facility in Pamplico, South Carolina, and anticipates it will be delivering fiber from the facility in Q3 2012. It will partner with Tintoria Piana and Barnhardt Manufacturing on the processing of that fiber. The Company’s current fiber is being produced at its pilot facility in nearby Kingstree, South Carolina.

About Naturally Advanced Technologies Inc.
Naturally Advanced Technologies Inc., through its wholly owned subsidiary, CRAiLAR® Fiber Technologies Inc., has developed proprietary technologies for production of bast fibers, cellulose pulp, and their resulting by-products in collaboration with Canada's National Research Council. It’s renewable and environmentally sustainable biomass resources from flax, hemp and other bast fibers offer cost-effective and environmentally sustainable processing and production, along with 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. For more information, visit www.naturallyadvanced.com.