CRAiLAR Technologies Signs Development Agreement With Cotswold Industries Inc.

VICTORIA, BC and PORTLAND, Ore.  — February 12, 2013 — CRAiLAR Technologies Inc. (“CL” or the
“Company”) (TSXV: CL) (OTCBB: CRLRF), which produces and markets CRAiLAR®, a natural fiber made
from flax and other bast fibers, has entered a development agreement with Cotswold Industries Inc.
to encompass sustainable pocketing and waist banding for its branded apparel customers. Cotswold
affiliate Central Textiles, in Central S.C., will be the primary conduit for the processing and
weaving of CRAiLAR Flax Fiber for the product line.

“We continue to identify new market opportunities for CRAiLAR that fit into both long-term
category opportunities and increased brand awareness,” said Ken Barker, CEO of CRAiLAR
Technologies. “Cotswold is exactly that kind of partner in terms of its work with global brands,
its specialization in the area we are developing with the company, and the opportunity to grow

“We are excited to help develop and market such a truly sustainable, high strength and
versatile fiber into our mass market channels,” said James McKinnon, CEO of Cotswold Industries.
“Partnering with CRAiLAR fits perfectly within our corporate strategy to be a leader in
environmentally conscious textile manufacturing.”

Posted on February 12, 2013

Source: Crailar Technologies Inc.