Naturally Advanced Technologies Signs Ten-Year CRAiLAR Fiber Purchasing Agreement With Hanesbrands Inc.

PORTLAND, Ore. — March 17, 2011 — Naturally Advanced Technologies Inc. has agreed to a ten-year
CRAiLAR® fiber supply agreement with Hanesbrands Inc. that will commercialize NAT’s proprietary
fibers. Terms of the agreement were undisclosed. This represents NAT’s initial commercialization
agreement for CRAiLAR and establishes the foundation for continued adoption of its proprietary
flax-based fiber.

The all-natural CRAiLAR process is the first to remove the binding agents from flax that
contribute to its stiff texture by bathing it in a proprietary enzyme wash. The result is a textile
fiber that merges the strength and durability of flax with the most desirable attributes of cotton.
Yarns made from CRAiLAR fibers can be used in knit, woven or non-woven fabrics alone, or blended
with other natural fibers used to manufacture apparel products similar to those marketed by
Hanesbrands, a leading basic apparel company based in Winston-Salem, N.C.

“This agreement is a strong validation of our CRAiLAR technology and a demonstration of its
ability to perform within the Hanesbrands family,” said Ken Barker, CEO of NAT. “The Company has
been working toward this agreement since the collaborative partnership with Hanesbrands began in
August 2009, and we expect to begin shipping to our full existing capacity beginning next month.
Hanesbrands has been an invaluable partner to our proof of concept and we look forward to expanding
our relationship with them and others as we move forward.”

CRAiLAR Flax is soft like cotton, has a similar color, possesses similar performance traits
and is comfortable to wear year-round. CRAiLAR Flax and cotton look the same, fit the same and wash
the same. Yet CRAiLAR Flax fibers shrink less than cotton fibers, wick moisture better, and have
increased dye uptake, meaning they require fewer chemicals to achieve the same depth of color.

The agreement is the culmination of a multiphase joint development agreement announced in
August 2009 with the intent to commercialize CRAiLAR. Hanesbrands made its first purchase of 10,000
lbs of CRAiLAR in the first quarter of 2010 and, after successful spinning trials, announced a
final evaluation phase in Q2 2010. In December 2010, the companies announced additional product
testing that called for Hanesbrands to purchase up to $375,000 of CRAiLAR Flax fiber between
December 1, 2010 and early 2011.

Agricultural Research Partnership

In January 2011, NAT and Hanesbrands announced a joint research partnership with the U.S.
Department of Agriculture’s Agricultural Research Service (USDA-ARS) designed to cultivate and
evaluate the viability of various flax strains for use in CRAiLAR technology. The project takes
place in South Carolina and has an initial term of one year, with a renewal option for two
additional years.

Posted on March 22, 2011

Source: Naturally Advanced Technologies