NAT Conducting Trials To Commercialize Crailar®

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 — is conducting bulk
commercialization trials with a leading US apparel maker and a North American pulp and paper
producer. Trial results will help NAT plan its next course of action to bring Crailar® Organic
Fiber and Advanced Materials technology developed by its susidiary, Crailar Fiber Technologies
Inc., to market.

“These trials are a significant milestone in our long-term strategy to commercialize the
patented Crailar Technology Platform, which we developed in partnership with the National Research
Council of Canada and the Alberta Research Council,” said Ken Barker, CEO, NAT. “We are very
excited to reach the final stages of the trials and look forward to discussing the results and our
preliminary plans to apply this technology on a large commercial scale.”

Crailar technology makes use of industrial hemp’s natural properties, including tensile
strength, themoregulation, and antimicrobial and abrasion resistance. Industrial hemp cultivation
does not require the use of pesticides or herbicides; and it flourishes in cool climates, is
drought-tolerant, benefits the soil and supports elimination of greenhouse gases.

November/December 2008