Naturally Advanced Technologies Reports on Environmentally Sustainable CRAILAR(R) Fiber Process and Files Third Quarter Financials



    PORTLAND, OR, Nov. 15 /CNW/ - Naturally Advanced Technologies Inc. ("NAT"
or the "Company") (OTCBB: NADVF), a developer of proprietary technologies for
the processing and production of environmentally sustainable bast fibers,
today reported operating and financial results for the third quarter and nine
months ended September 30, 2007.
    For the third quarter ended September 30, 2007, the Company, through its
wholly owned subsidiary CRAILAR(R) Fiber Technologies Inc., confirmed Phase I
proof of concept for two proprietary bast fiber processing technologies
currently being developed in collaboration with Canada's National Research
Council ("NRC") and the Alberta Research Council ("ARC"). CRAILAR(R) X-Series
Fiber demonstrated Phase I proof of concept at the NRC's Industrial Materials
Institute in Montreal, including hemp fiber decortication and extrusion of
dissolving pulp processes co-developed with the ARC. CRAILAR(R) X-Series Fiber
is an environmentally sustainable hemp fiber which is dissolved and then
extruded to create high performance fabric, apparel and composites.
    Phase I proof of concept for CRAILAR(R) F-Series Fiber included final
engineering, installation and testing of processing equipment at the Company's
co-development facility located at the NRC's Institute for Biological Science
in Ottawa. CRAILAR(R) F-Series Fiber is a traditionally spun environmentally
sustainable hemp yarn targeted for use in apparel and upholstery industries.
The Company has begun build-out of its CRAILAR(R) F-Series pilot plant in
Montreal, which is expected to be operational for initial scale-up of Phase II
proof of concept during the second quarter of 2008. Proprietary CRAILAR(R)
fiber technologies including all patent applications filed by the NRC and ARC,
are held by the Company under exclusive international licensing agreements.
Development continues to establish efficacy of the CRAILAR(R) platform with
test fibers meeting initial production requirements of textile and composite
industries.
    "We are exceptionally pleased with the progress of our CRAILAR(R)
technology platform and ongoing collaboration with world class scientists at
Canada's National Research Council and Alberta Research Council. Our F-Series
intellectual property was developed by Dr. Wing Sung, a Principal Research
Officer at the NRC and international expert in industrial enzymes. Dr. Sung is
the scientist behind four generations of high performance engineered enzymes
for the production of bleached pulp in partnership with Iogen Corporation of
Ottawa, a leading manufacturer of industrial enzymes used internationally in
the pulp and paper industry. We are excited to see Canada's biomass expertise
applied to the development and early validation of CRAILAR(R) technology for
the production and processing of bast fibers including hemp and flax." said
Ken Barker, the Company's Portland, Oregon-based Chief Executive Officer.
    Sales results for the Company's apparel division HTnaturals, a provider
of environmentally sustainable hemp, bamboo, organic cotton and soy blended
apparel since 1998, continued to show strong growth in both the seasonal
retail line and the high volume corporate wear line. For the third quarter
ended September 30, 2007, HTnaturals posted sales of US$721,000 an increase of
78% over the same period last year, with year to date sales of US$1.8 million,
an increase of 129% over the same period 2006. Year to date margin is
approximately 35% of sales or US$629,000 as compared to 32% or US$255,000 for
the same period 2006. The net loss for the nine-month period ending September
30, 2007, was ($944,236) compared to a loss of ($896,233) for the same period
in 2006, which is an increase in net loss of ($48,003). The increase in loss
was primarily due to the increase in operating expenses which are attributable
to the commercialization of CRAILAR(R), but not to direct development costs.
The basic loss per share was $0.04 for the nine-month period ended September
30, 2007, compared to a basic loss of $0.05 per share for the same period in
2006. For the nine-month period ended September 30, 2007, the weighted average
number of shares outstanding was 24,726,397 compared to 17,895,425 at
September 30, 2006.
    The foregoing information should be read together with the unaudited
consolidated financial statements of the Company for the period ended
September 30, 2007, including the notes thereto, and management's discussion
and analysis for the same period, all of which have been filed and are
available for viewing under the Company's profile at www.sec.gov.

    ABOUT Naturally Advanced Technologies, Inc.

    Naturally Advanced Technologies Inc. ("NAT" or the "Company") is
committed to unlocking the potential of renewable and environmentally
sustainable biomass resources from hemp and other bast fibers. NAT, through
its wholly owned subsidiary CRAILAR(R) Fiber Technologies Inc., is developing
proprietary technology for production of bast fibers, cellulose pulp, and
their resulting byproducts, 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
bast fibers such as hemp and flax, resulting in advanced 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, NAT 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. www.naturallyadvanced.com

    Safe Harbor Statement

    This release may contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act of
1934 and the provisions of the Private Securities Litigation Reform Act of
1995 and is subject to safe harbor created by these sections. Actual results
may differ materially due to a number of risks, including, but not limited to,
technological and operational challenges, needs for additional capital,
changes in consumer preferences, risks associated with: market acceptance and
technological changes; dependence on manufacturing and material supplies
providers; international operations; and competition.





For further information:

For further information: Kenneth C. Barker, Chief Executive Officer,
Naturally Advanced Technologies, Inc., Ph. (604) 255-5005,
ir@naturallyadvanced.com

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CRAiLAR Technologies Inc.

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