Naturally Advanced Technologies Announces Updates on its Crailar(R) Fiber Technology, and Announces Plans to Commence Construction of First Crailar(R) Manufacturing Facility in Craik, Saskatchewan

    PORTLAND, OR, Jan. 22 /CNW/ - Naturally Advanced Technologies Inc. ("NAT"
or the "Company") (OTCBB: NADVF), a developer of proprietary technologies for
processing and production of environmentally sustainable natural fibers, today
announced its progress regarding commercialization of its CRAILAR(R) fiber
technology, as well as plans for the construction of its first CRAILAR(R)
production facility in Craik, Saskatchewan.

    Craik Manufacturing Facility:

    The Company has confirmed its intention to commence building its first
CRAILAR(R) manufacturing facility in Craik, Saskatchewan, in 2008, and this
week commenced geo technical surveys on the future site.
    The Craik facility will be designed as a primary processing facility
using the patent pending decortication technology co-developed with the
Alberta Research Council. Decortication is the technical term for mechanically
stripping the outer fiber of the hemp stalk from the inner core fiber.
Secondary processing using the F-Series technology is also expected to occur
at the same facility. Management expects that the Craik facility will have a
nameplate capacity of producing 52 million kilograms (114M pounds) of
feedstock fiber per year.
    A Montreal-based engineering firm has been hired to design the process
flow and building specifications. A second engineering firm has been hired to
conduct geotechnical surveys in Craik, which are already underway. The Company
expects engineering plans and specifications will be finalized in Q2, 2008.
The Company plans for the building to be constructed using Canadian Green
Building Council construction guidelines wherever possible and that most of
the utilities used in the manufacturing processes will come from renewable
resources. The facility will be built on the 80 acres of land provided by the
town of Craik to NAT in 2005.

    CRAILAR(R) Pilot Plant and F-Series Spinning Trials:

    The Company's Proof of Concept facility in Ottawa, based at the National
Research Council of Canada's Institute for Biological Sciences facility, where
the first CRAILAR(R) enzymatic process research and development technology was
conducted, has completed initial commercialization trials, and moved into
fiber processing for bulk spinning and testing. The trials are being conducted
with hemp fiber grown specifically for CRAILAR(R) F-Series, which is expected
to yield positive benefits in fiber applications and performance
characteristics. Using the CRAILAR(R) technology platform for processing and
production of sustainable bast fibers such as hemp, the Company's objective is
to develop fiber that is a more environmentally sustainable alternative to
organic cotton.
    Spinning trials are being conducted by an independent third party in the
USA, and initial results are in line with the Company's objectives of creating
a certifiable organic and sustainable fiber, from seed to yarn. Final
applications for CRAILAR(R) F-series are expected to include apparel, home
furnishings, carpeting and basic composites.
    In addition, the Company has begun the manufacturing of production
equipment planned to be used in the Company's first manufacturing facility in
Craik, Saskatchewan. The production plant equipment is scheduled to be
constructed in Montreal, Canada, where the first full scale production trials
are expected to be conducted in conjunction with the NRC team that developed
the CRAILAR(R) enzymatic process. After completion of the bulk CRAILAR(R)
fiber trials, which are scheduled to be used for knitting and weaving
developments in Q2, 2008, management anticipates that the production line will
be moved to the facility in Craik in preparation for the first CRAILAR(R)
production to commence in Q1, 2009.

    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 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 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.

    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,

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CRAiLAR Technologies Inc.

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