Naturally Advanced Technologies Inc. (NAT), a company committed to unlocking the potential of renewable and environmentally sustainable biomass resources from hemp and other bast fibres, has signed an agreement with G.J. Littlewoods Son, Inc. to manufacture Crailar Organic Fibers for use in commercial products made by apparel companies.

Littlewoods, located in Philadelphia, is a commission dyehouse, specializing in the dyeing of synthetic fibres, as well as natural fibres. It intends to use state-of-the-art conventional machinery to process Crailar.

"We are excited to have signed the foremost fibre processor and dyer in North America for the next step in executing our Crailar Organic Fibers commercialization plan," stated Ken Barker, CEO of NAT. "In September, we expect to begin producing approximately 20,000 pounds of fibre per week for our apparel partners as well as provide testing yarns to spinning companies for the home furnishings, denim and work wear markets. As such, we anticipate delivering our first revenue from Crailar in the fourth quarter. Our agreement secures initial capacity of approximately 40,000 pounds per week, with the capability to aggressively ramp up from there to meet the needs of our commercialization plans."

Crailar Organic Fibers is a proprietary enzymatic processing technology for transforming bast fibre into superior organic fibre for apparel, home furnishings and carpeting applications. The enzyme bath produces fibres that are used as a more cost-comparable and sustainable alternative to organic cotton.

In November 2008, the company announced test results from its trials at North Carolina State University, which were sponsored by Hanesbrands Inc. In the trials, the testers spun hemp yarn and knitted fabric on conventional cotton equipment with no modifications using Crailar Organic Fibers technology. The resulting yarn was knitted into a five-ounce per square yard jersey fabric, which resulted in a 50% reduction in shrinkage, a 45% increase in tensile strength, a 20% reduction in dye uptake, and demonstrated wicking capabilities.

Naturally Advanced Technologies Inc. is committed to unlocking the potential of renewable and environmentally sustainable biomass resources from hemp and other bast fibres. The company, through its wholly owned subsidiary, Crailar Fiber Technologies Inc., is developing proprietary technologies for production of bast fibres, cellulose pulp, and their resulting by-products, in collaboration with Canada's National Research Council and the Alberta Research Council. Crailar technology offers cost-effective and environmentally sustainable processing and production of natural, bast fibres 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.