NATURALLY ADVANCED TECHNOLOGIES ANNOUNCES CRAILAR FLAX FIBER PRODUCTION NOW IMMINENT

Company Now Has the Capacity to Ship CRAiLAR Flax Fiber from its Kingstree Facility by March 2011

PORTLAND, OR, Jan. 20 /PRNewswire/ - Naturally Advanced Technologies (OTCBB: NADVF, TSXV: NAT) CEO Ken Barker announced yesterday at the Texworld 2011 Conference in New York that the company is prepared to begin shipping initial orders of CRAiLAR® Flax Fiber from its Kingstree, SC, facility as early as March of this year and has developed the capacity to rapidly increase production thereafter to meet the demands of its development partners and to respond to increasing interest from new customers in the denim, workwear, home furnishings and knitwear markets.

"We are fortunate to have flax fiber harvested from previous seasons available in our warehouse, which allows us to begin production immediately," Barker said. "Additionally, our CRAiLAR technology unlocks the potential of flax straw harvested from the oilseed industry that can potentially be processed into yarn suitable for hosiery, denim, knitwear and home furnishings. Last year's harvest produced an exceptionally high yield, giving us the ability to increase production very quickly."

NAT announced on Tuesday that it had entered into growing trials with Hanesbrands and the USDA-ARS, further developing the company's agronomic know-how and its ability to produce fiber capable of being spun into finer-gauge yarns suitable for undergarments, shirting and finer-knit garments. These trials will enable NAT to move to an unprecedented level of flax-fiber refinement that is expected to revolutionize the garment and textile industries.

"The fiber industry is significant in size and complexity," Barker said. "Developing flax strains capable of accessing all sectors of the industry is critical for our continued growth. Our research project has already resulted in 200 acres of flax being planted in the Kingstree region this past winter, which will be ready for harvesting this spring, adding to our production capabilities in the upcoming year."

NAT announced in November of last year that it had concluded all of its trials with its commercialization partners, and as a result had received a short-term flax fiber supply agreement from Hanesbrands. NAT expects to complete commercialization agreements shortly.

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® Fiber Technologies Inc., is developing proprietary technologies for production of bast fibers, cellulose pulp, and their resulting by-products, in collaboration with Canada's National Research Council and the Alberta Innovates - Technology Futures (Formerly the Alberta Research Council). CRAiLAR® 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 release.

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.

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