Crailar Fiber Technologies To Begin Trials On Advanced Natural Fiber

Vancouver-based Hemptown Clothing
Inc. has announced it will invest $1.3 million in recently acquired financing in its subsidiary
Crailar Fiber Technologies Inc., which will use the assets to commence trials on its
Crailar™ advanced natural fiber.

Crailar fiber is the result of a collaboration Hemptown entered into last year with the
National Research Council of Canada to develop of an enzyme that can unlock the economic potential
of industrial hemp fiber as a cost-competitive alternative to cotton.

Crailar is being developed as an eco-friendly fiber destined for a range of commercial
fabric applications because of its strength, flexibility and softness. The company is currently
working on licensing agreements to bring these fabrics to market.

“We have produced some very exciting results in the laboratory recently, and will now
produce large amounts of Crailar fiber, which will be tested as spun fiber for textiles, as well as
shorter fiber for use in advanced natural composite materials,” said Jerry Kroll, CEO, Hemptown. “
It is now possible for us to run these pilot plant quantities of Crailar for these tests, and
potentially even some low volume production runs in Canada and elsewhere to being cash flow on

November 2005