NATURALLY ADVANCED TECHNOLOGIES FORECASTS FLAX TO BECOME NEXT MAJOR PLAYER IN THE GARMENT, TEXTILE INDUSTRY

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® 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 synthetics.

"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 fibers.

"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^® 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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