Naturally Advanced Technologies Expands Production Capacity With Additional Third-Party Manufacturing Agreement

VICTORIA, B.C. and PORTLAND, Ore. — March 26, 2012 — Naturally Advanced Technologies Inc. (“NAT” or
the “Company”) (TSXV: NAT) (OTCBB: NADVF), which produces and markets CRAiLAR(r), a natural fiber
made from flax and other bast fibers, announced it has partnered with Barnhardt Manufacturing
Company to further expand its manufacturing capacity. The agreement calls for Barnhardt to execute
the CRAiLAR enzymatic process exclusively for NAT, and expands upon manufacturing plans announced
earlier this month.

Founded in 1929, Charlotte, N.C.-based Barnhardt is a global supplier of cotton for medical,
health and beauty aids, and nonwoven fabrics. It currently supplies processed fiber to companies
that demand similar standards to those of NAT’s global brand partners, and this third-party
manufacturing agreement gives NAT the ability to scale to demand from existing and future partners.
Barnhardt will commence production for NAT in Q2 2012.

“The advances we have made in the CRAiLAR enzymatic process over the past year, which opened
the option of third-party manufacturing, means we can significantly expand our production capacity
going forward without the infrastructure costs of building fully executed company-owned
facilities,” said Ken Barker, CEO of NAT. “With more than 80 years in the business Barnhardt
emerged as an ideal partner to continue our capacity expansion as we expect demand to rapidly
increase through the balance of 2012.”

Announced in March, NAT embarked on a yearlong evaluation and optimization of its CRAiLAR
technology, which led to a 40 percent reduction in its enzymatic process time. The immediate
benefit was increased production capacity at its own facility. The advancements also allowed NAT to
evaluate third-party manufacturing partners for that process, further increasing overall production
volume and accelerating the growth of its flagship product, CRAiLAR Flax fiber. Its initial
third-party manufacturing agreement was announced earlier this month with Tintoria Piana, which has
U.S. operations in Cartersville, Georgia.

NAT will establish its first full-scale facility in Pamplico, S.C., where flax is grown
nearby as a winter crop. The company 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, and Target for evaluation and development.

Posted on March 27, 2012

Source: NAT