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NAT & HbI collaborate on Organic-Fiber Commercialization

04
Aug '09
Naturally Advanced Technologies Inc., has entered into a multiphase joint development agreement with Hanesbrands Inc., that will allow Crailar(R) Organic Fibers technology to be processed for use in commercial apparel knit products made by Hanesbrands.

NAT, using technology developed with and licensed from The National Research Council of Canada (NRC), and Hanesbrands, a leading producer and marketer of innerwear, outerwear and hosiery apparel, will retrofit existing dying equipment at a Hanesbrands facility to develop a commercially viable use of the 100 percent organic fiber.

"We are eagerly working with NAT to incorporate Crailar Organic Fibers into our production process," stated Michael Faircloth, Hanesbrands' vice president of global supply chain support. "Our interest in developing Crailar's potential for applications in the knit apparel market grew out of the impressive performance-enhancement characteristics it demonstrates, as well as the economic and environmental benefits it offers."

"The agreement with Hanesbrands is a significant step in our plan to commercialize Crailar Organic Fibers, a technology that employs a 100 percent organic process that uses hemp as its feedstock," stated Ken Barker, CEO of NAT. "As previously announced, Crailar Organic Fibers were successfully spun on existing cotton systems at North Carolina State University in tests that were sponsored by Hanesbrands. These tests demonstrated the evolution of hemp fiber from a niche market alternative to a mainstream solution. Now Hanesbrands is taking action to develop an in-house facility in North Carolina for processing Crailar Organic Fiber. We are very excited to continue working with Hanesbrands in this next phase of our partnership, which will include technology development, marketing initiatives and commercialization planning."

Phase One: Development
- Jointly develop a processing facility to produce organic apparel-grade fiber for use in commercial apparel products.
- Establish the Technology Development Plan that will specify deliverables.

Phase Two: Commercialization
- Develop coordinated marketing plan for Crailar.
- Determine and execute an integrated commercialization plan that maximizes the supply chain.

The JDA was effective as of June 22nd, 2009 and carries a 30-day cancellation clause by either party.

Naturally Advanced Technologies Inc


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