NAT, Lenzing Sign Joint Development Agreement

Naturally Advanced Technologies Inc. (NAT), Vancouver, Canada, and Lenzing AG, Austria, have signed
a joint development agreement under which the two companies will evaluate the blending of NAT’s
enzymatically processed CRAiLAR® Flax fiber with Lenzing’s Tencel® and Lenzing Modal® regenerated
cellulosic fibers. Potential applications for any yarns that might be developed include fashion and
sport performance.

“With Lenzing, we can now evaluate the opportunity to expand the host fibers with which
CRAiLAR can blend to identify new performance attributes, applications and industries,” said Ken
Barker, CEO, NAT. “This partnership will have applications in industry sectors where polyester
fibers have been the norm, in addition to our existing applications as a sustainable complement to

Lenzing and NAT intend to develop a range of yarns that stress the fibers’ sustainability
attributes, leverage each fiber’s water absorption and wicking properties to offer alternatives to
current materials used in athletic and sport performance apparel, and develop a blended yarn
featuring Crailar and Lenzing’s fibers for women’s fashion applications.

May/June 2012