Naturally Advanced Technologies Enters Spinning and Trademark Licensing
Agreement for Crailar Organic Fibers

     - Patrick Yarns to sell Crailar branded yarn into denim, work wear,
                 home furnishings and carpeting industries -

PORTLAND, Aug. 5 /PRNewswire-FirstCall/ - Naturally Advanced Technologies Inc.
(NAT, OTCBB: NADVF, TSXV: NAT) a company committed to unlocking the potential
of renewable and environmentally sustainable biomass resources from hemp and
other bast fibers, and Patrick Yarns, a world-leading manufacturer of high
performance industrial yarns, signed a trademark licensing agreement. Under
the terms of the non-exclusive, non-transferable license, Patrick Yarns will
make and manufacture Crailar Organic Fiber yarns and related products for sale
and distribution in North America to third party licensees of Crailar.
"This agreement is a very important step in our strategy to commercialize
Crailar technology beyond commercial apparel knit products," stated Ken
Barker, CEO of NAT. "Through our partnership with Patrick Yarns, we will start
to develop markets in denim, work wear and related apparel markets, as well as
the home furnishings and carpeting industries. We are very excited to be
working Patrick Yarns, one of the foremost spinning experts in the country, in
a partnership that allows us to create a pull through marketing strategy with
fabric and finished goods brands. The company has an incomparable track record
of partnering with its customers to develop yarns that create brand awareness
and market share."
Patrick Yarns, based in Kings Mountain, North Carolina, combines over 50 years
of experience with cutting-edge technology to achieve breakthrough solutions
and provide superior, innovative and cost-effective product lines.
Crailar Organic Fibers is a proprietary enzymatic processing technology for
transforming bast fiber into superior organic fiber for apparel, home
furnishings and carpeting applications. The enzyme bath produces fibers that
are used as a more cost-comparable and sustainable alternative to organic
cotton.

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'sNational 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 nor any regulatory authority accepts
responsibility for the adequacy or accuracy of this news 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-KSB, Form 10-QSB 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  Naturally Advanced Technologies Inc.

Investor Contact: Kirsten Chapman, Cathy Mattison, Lippert/Heilshorn
Associates, (415) 433-3777, ir@naturallyadvanced.com; Media Contact: Adam
Handelsman, Lippert/Heilshorn   Associates, (212) 838-3777,
AHandelsman@lhai.com

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