Naturally Advanced Technologies Signs Amended Agreement with the National Research Council of Canada to Collaborate on Research for the Production of Cellulosic Ethanol from Sustainable Feedstock

- Research Intended to Develop New Enzyme Technology for Cellulosic Ethanol Manufacturing -

PORTLAND, OR, Feb. 22 /PRNewswire-FirstCall/ - Naturally Advanced Technologies Inc. (NAT, OTCBB: NADVF, TSXV: NAT) amended its agreement with the National Research Council (NRC) of Canada to include collaboration on cellulose technology research for the production of cellulosic ethanol from sustainable feedstock, such as corn stalks and straws, which is the unexploited byproduct in agri-food production.

        -  The NAT - NRC collaboration began in 2004 and was extended in 2007
           for the design and construction of advanced enzyme technology for
           the extraction and cleaning of industrial hemp fiber for the
           textile sector, as spearheaded by Dr. Wing Sung.
        -  As this research is in the final stages, the two parties have
           agreed to divert existing funding commitments to pursue additional
           opportunities for the advanced enzyme technology, namely in
           cellulosic ethanol.
        -  Currently, bio-ethanol is produced by the fermentation of yeast
           with glucose that comes from corn starch, which requires high
           levels of fertilizer and energy use and results in high levels of
           waste materials.
        -  The next research phase will address the inefficient enzymatic
           conversion of cellulose to glucose for the subsequent fermentation
           to ethanol by developing technology via protein engineering and an
           efficient hydrolysis protocol.
        -  The extended agreement expires May 9, 2012, and maintains the same
           parameters for NAT to secure the exclusive rights of the
           intellectual property.

"Leading this project will be Jeremy K. Jones of our board of directors," stated Ken Barker, CEO of NAT. "Jeremy has extensive experience with cellulosic ethanol and advanced materials as vice president for Koch Genesis, the venture arm of Koch Industries that includes Koch's operating businesses INVISTA, Georgia-Pacific and Flint Hills Resources. I am confident he will provide excellent direction as we continue collaborating with the NRC to build our advanced enzyme treatment technology portfolio."

"We are thrilled that Dr. Sung will again serve as Principal Research Officer for this project. He has received numerous awards for his leadership and promotion of the life sciences industry and collaboration within the industry on a national scale. His study of proteins and enzymes was pivotal in developing CRAiLAR(R), NAT's organic enzyme bath process that transforms hemp into fiber that can be used in traditional cotton knitting systems, thereby enabling hemp to enter mainstream apparel production. In addition, Dr. Sung designed enzymes that reduce toxic effluent in the pulp and paper industry," concluded Barker.

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'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 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

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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-K, Form 10-Q 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.