CRAiLAR Pamplico Facility Commissioned

Full production on schedule to commence December 28

VICTORIA and PORTLAND, OR, Dec. 18, 2012 /PRNewswire/ - In line with the announcement last month, CRAiLAR Technologies Inc. ("CL" or the "Company") (TSXV: CL) (OTCBB: CRLRF) commissioned its first full-scale CRAiLAR manufacturing facility in Pamplico, S.C., on Monday, December 17.

"This is a milestone event for us as a company and an industry partner, heralding a new era in sustainable natural fibers for multiple market applications", said Ken Barker, CEO. "We are particularly excited about the level of fiber quality our new state of the art facility will deliver.  This uniquely innovative facility will not only deliver on production volume, but will equally showcase process efficiencies and product enhancements which are needed by our business partners around the world."

The CRAiLAR team is working with the equipment manufacturer's representative onsite at the Pamplico facility on a variety of activities.  This includes commissioning of auxiliary motors, which began last week slightly ahead of schedule, with start up moving into the decortication line components this week.

The manufacturer's representative is onsite making instantaneous tuning adjustments with the CRAiLAR operations team, implementing safety procedures, call signals and stops. With operating system software and connectivity in place and trial runs ahead, it is anticipated that bulk fiber production runs and adjustments for quality control will be completed ahead of the planned December 28 production commencement date., outlined on the Corporate Update call in October.

Reiteration of Production Expectations
The Company plans to tier its output at the facility beginning with an anticipated 150,000 lbs. per week in January, increasing to 300,000 pounds per week in February and then to level off in the short-term at 450,000 pounds per week thereafter. By the end of 2013, we anticipate the commissioning of expanded production capacity at the facility of 600,000 lbs. per week and to achieve a total production capacity of more than one million pounds of CRAiLAR Flax Fiber per week by year-end 2013.

About CRAiLAR Technologies Inc.
CRAiLAR® Technologies Inc., previously Naturally Advanced Technologies Inc., offers cost-effective and environmentally sustainable natural fiber in the form of flax, hemp and other bast fibers for use in textile, industrial, energy, medical and composite material applications. Produced using a fraction of water and chemical inputs compared with other natural fibers, CRAiLAR Flax is the newest natural fiber introduction to the market in decades. The Company supplies its CRAiLAR Flax to HanesBrands, Georgia-Pacific, Brilliant Global Knitwear, Tuscarora Yarns and Target Corp. for commercial use, and to Levi Strauss & Co., Cintas, Carhartt, Ashland, PVH Corp. and Lenzing for evaluation and development. The Company was founded in 1998 as a provider of environmentally friendly, socially responsible clothing. For more information, visit www.crailar.com.

ADVISORY: This press release contains forward looking statements which may include statements concerning completion of any proposed acquisitions, capital programs, debt, funds flow from operations, and the anticipated use of the net proceeds of the Private Placement. Although CL believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because CL can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Any proposed acquisition may not be completed if required approvals or some other condition to closing is not satisfied. Accordingly, there is a risk that any proposed acquisition or offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the Private Placement by CL might change if the board of directors of CL determines that it would be in the best interests of CL to deploy the proceeds for some other purpose.

The forward looking statements contained in this press release are made as of the date hereof and CL undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

SOURCE Crailar Technologies Inc.