Crailar Technologies To Acquire European Wet Processing Facility

Portland, Ore., and Vancouver, Canada-based Crailar Technologies Inc. has announced plans to
acquire a European fiber dyeing facility that has been in operation for more than 30 years in one
of Western Europe’s most prolific flax-growing regions.

The facility can produce more than 250,000 pounds of CRAiLAR® Flax fiber weekly, and its
capacity can be expanded. In exchange for the facility, Crailar Technologies would retire
approximately $1.2 million of the vendor’s debt over three years. Crailar also would sign a 10-year
lease with the option to purchase the building housing the facility, with a renewal option for
another 10 years.

“Acquisition of this facility would accelerate our production timeline by six to nine months;
eliminate construction risks inherent with a ‘green field’ project; and substantially reduce the
capital required to achieve one million pounds per week of capacity,” said Ken Barker, CEO, Crailar
Technologies Inc. “The plant is also is located in an area known for flax growing excellence,
thereby providing an abundant source of feedstock, and ties in perfectly with our European flax
fiber sourcing initiative.”

Last year, the company started Crailar production at its first fully integrated
commercial-scale facility in Pamplico, S.C.
(See ”
Set To Start Up Pamplico Processing Facility
,, November/December 2012).

September 10, 2013