Naturally Advanced Technologies Subleases Kingstree Facility For Flax Fiber Scale-Up

Portland, Ore.- and Vancouver, B.C., Canada-based Naturally Advanced Technologies Inc. (NAT) — a
developer of technology to process bast fibers including industrial hemp for use in a range of
applications — has signed a 10-month sublease of a Kingstree, S.C., facility that it will use as a
pilot scale-up flax fiber facility to perform decortication of CRAiLAR® Organic Fibers. The
40,000-square-foot facility — originally set up to process flax fiber under a U.S. Department of
Agriculture initiative — is located near 300 acres of land dedicated to fiber-flax cultivation,
where NAT will conduct fiber-flax-growing trials starting in October.

“Having a facility in the USA that we operate and manage for the dry process or decortication
of our Crailar Organic Fibers brings the entire patented Crailar process together under NAT
control, enabling us to manage our process entirely,” said Ken Barker, CEO, NAT. “As well, the
opportunity to conduct full scale flax trials furthers our vision of utilizing a variety of bast
fibers as the foundation for Crailar and its multiple principal uses.”

August 17, 2010