Naturally Advanced inks licensing agreement with ARC

December 23, 2008 - Canada

Naturally Advanced Technologies Inc., a pioneer in commercializing the use of bast fibers including industrial hemp, was granted a world-wide exclusive, royalty bearing license from the Alberta Research Council Inc (ARC) to ARC’s decortication process for generating clean fibers from the straw of bast fiber crops and to ARC’s method of degumming lignocellulosic fibers to produce dissolving pulp fibers.

Ken Barker, CEO of NAT, stated, “Our research relationship with ARC began several years ago resulting in the creation of a Master Services Agreement for Technology Development signed effective January 1, 2007. Under that agreement NAT has exercised its option for a world-wide exclusive license to utilize the ARC technologies to produce CRAILAR Dissolving Pulps.

NAT intends to establish commercial partnerships to manufacture and market this advanced technology for large-scale production. Near-term opportunities include consumer absorbent pulp and paper products and performance yarns used in performance and protective apparel, as well as plastics and composites applications in the longer-term.”

About Naturally Advanced Technologies:
Naturally Advanced Technologies Inc. is committed to unlocking the potential of renewable and environmentally sustainable biomass resources from hemp and other bast fibers. The Company, through its wholly owned subsidiary, Crailar Fiber Technologies Inc., is developing proprietary technologies for production of bast fibers, cellulose pulp, and their resulting by-products, in collaboration with Canada’s National Research Council and the Alberta Research Council.

CRAILAR technology offers cost-effective and environmentally sustainable processing and production of natural, bast fibers such as hemp and flax, resulting in increased performance characteristics for use in textile, industrial, energy, medical and composite material applications. The Company is also a provider of sustainable, environmentally friendly fibers and fabrics through its apparel division HTnaturals.

Founded in 1998 in response to the growing demand for environmentally friendly, socially responsible clothing, the Company adheres to a “triple bottom line” philosophy, respecting the human rights of employees, the environmental impact of the Company's operations and fiscal responsibility to its shareholders.