Naturally Advanced Technologies Announces Sublease Of Facility In Kingstree,
South Carolina

40,000 Square Foot Facility Utilized As Pilot Scale Facility For CRAiLAR Decortication Process

PORTLAND, OR, Aug. 10 /CNW/ - Naturally Advanced Technologies, Inc (OTCBB: NADVF, TSXV: NAT) announced today that as of August 9, 2010, it has signed a ten month sublease of a facility at 164 County Camp Road, Kingstree, SC, 29556. The space has been attained for use as an initial scale-up flax fiber facility to conduct the decortication process of CRAiLAR(R) Organic Fibers. The facility was originally established to conduct processing of flax fiber under a USDA initiative.

In addition, the property is housed near 300 acres of flax crops that will also be utilized to conduct the company's flax fiber growing trials taking place beginning October, 2010.

"Having a facility in the USA that we operate and manage for the dry process or decortication of our CRAiLAR Organic Fibers brings the entire patented CRAiLAR process together under NAT control, enabling us to manage our process entirely," said Ken Barker, CEO, Naturally Advanced Technologies. "As well, the opportunity to conduct full scale flax trials furthers our vision of utilizing a variety of bast fibers as the foundation for CRAiLAR and its multiple principal uses."

Kingstree, SC is a town of approximately 3500 people; the new facility is expected to create job opportunities for the people of Kingstree as well as create opportunities with local farmers in the surrounding areas.

For more information about Naturally Advanced Technologies Inc., visit www.naturallyadvanced.com.

About Naturally Advanced Technologies Inc.

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(R) 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 was founded in 1998 as a provider of environmentally friendly, socially responsible clothing and 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. See 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 release.

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 the Company'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, the Company's business and operations are subject to the risks set forth in the Company's 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. The Company assumes no obligation to update the forward-looking statements.

SOURCE CRAiLAR Technologies Inc.

For further information: For further information: For Press information, please contact: Cheryl Roth, organicworks PR, (212) 253-0474, Cheryl@organicworkspr.com; or Erin Brunner, organicworks PR, (212) 253-0474, Erin@organicworkspr.com; For Investor information, please contact: Kirsten Chapman, Cathy Mattison, Lippert/Heilshorn & Associates, 415.433.3777, ir@naturallyadvanced.com

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CRAiLAR Technologies Inc.

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