Material Difference from Linen Acknowledged and Unique Product Labeling
Allowed for Merchandising
VICTORIA, BC and PORTLAND, OR, July 9, 2012 /CNW/ - The Federal Trade
Commission has issued a staff opinion that Naturally Advanced Technologies Inc. ("NAT" or the "Company") (TSXV: NAT) (OTCBB: NADVF), which produces and
markets CRAiLAR® Flax Fiber, will merchandise products with a generic
"flax" designation on content labels, rather than linen, lending
further definition to the unique nature of the process and the
Company's resulting product.
In a letter dated June 26, 2012, the FTC wrote:
"Based on the information about the CRAiLAR® process and the attributes
of the fibers you provide in your letter, we conclude that describing
these fibers as flax on labels attached to textile fiber products made
from the fibers would comply with the Rules. We also conclude that
describing these fibers as linen rather than flax could mislead or
deceive consumers. We base these conclusions on your assertions that
the CRAiLAR® process involves a manner of obtaining flax fibers that
does not chemically alter them, that the attributes of the fibers
differ from those of linen, and that international standards and
practice as well as the U.S. government recognize the use of the term
"flax" to describe flax fibers that have not been chemically changed."
"This is an important step in defining the groundbreaking nature of
CRAiLAR," said Jay Nalbach, Chief Marketing Officer of NAT. "Our
process results in a pure flax product that feels and can be cared for
like cotton, and we believe that articulating that at retail is an
important part of the unique brand proposition for CRAiLAR Flax, to the
merchandising opportunities of our partner brands, and to the
relationship we intend to build with consumers."
NAT today supplies its CRAiLAR Flax to HanesBrands, Georgia-Pacific, and
Brilliant Global Knitwear for commercial use, and to Levi Strauss &
Co., Cintas, Carhartt, Ashland, Westex, Target and PVH Corp for
evaluation and development. NAT is in construction on its first
full-scale production facility in Pamplico, South Carolina, and
anticipates it will be delivering fiber from the facility in Q3 2012.
It will partner with Tintoria Piana and Barnhardt Manufacturing on the
processing of that fiber.
About Naturally Advanced Technologies Inc.
Naturally Advanced Technologies Inc., through its wholly owned
subsidiary, CRAiLAR® Fiber Technologies Inc., has developed proprietary
technologies for production of bast fibers, cellulose pulp, and their
resulting by-products in collaboration with Canada's National Research
Council. It's renewable and environmentally sustainable biomass
resources from flax, hemp and other bast fibers offer cost-effective
and environmentally sustainable processing and production, along with
increased performance characteristics for use in textile, industrial,
energy, medical and composite material applications. The Company was
founded in 1998 as a provider of environmentally friendly, socially
responsible clothing. For more information, visit www.naturallyadvanced.com.
Neither the TSX Venture Exchange Inc. nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
Forward-Looking Statement Disclaimer
This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this news release,
other than statements of historical facts, are forward-looking
statements. Forward-looking statements or information are subject to a
variety of risks and uncertainties which could cause actual events or
results to differ from those reflected in the forward-looking
statements or information and including, without limitation, risks and
uncertainties relating to: any market interruptions that may delay the
trading of NAT's shares, technological and operational challenges,
needs for additional capital, changes in consumer preferences, market
acceptance and technological changes, dependence on manufacturing and
material supplies providers, international operations, competition,
regulatory restrictions and the loss of key employees. In addition,
NAT's business and operations are subject to the risks set forth in its
most recent Form 10-K, Form 10-Q and other SEC filings which are
available through EDGAR at www.sec.gov. These are among the primary risks we foresee at the present time. NAT
assumes no obligation to update the forward-looking statements.
SOURCE Naturally Advanced Technologies Inc.
For further information:
NAT Media Contact:
Director, Corporate Communications
NAT Investor Contact:
NAT Corporate Officer: