Material Difference from Linen Acknowledged and Unique
Product Labeling Allowed for Merchandising
VICTORIA, BC and
PORTLAND, OR, July 9, 2012 /PRNewswire/ - The Federal Trade
Commission has issued a staff opinion that Naturally Advanced
Technologies Inc. ("NAT" or the "Company") (TSXV: NAT) (OTCBB:
NADVF), which produces and markets CRAiLAR® Flax Fiber, will
merchandise products with a generic "flax" designation on content
labels, rather than linen, lending further definition to the unique
nature of the process and the Company's resulting product.
In a letter dated June 26,
2012, the FTC wrote:
"Based on the information about the CRAiLAR®
process and the attributes of the fibers you provide in your
letter, we conclude that describing these fibers as flax on labels
attached to textile fiber products made from the fibers would
comply with the Rules. We also conclude that describing these
fibers as linen rather than flax could mislead or deceive
consumers. We base these conclusions on your assertions that
the CRAiLAR® process involves a manner of obtaining flax fibers
that does not chemically alter them, that the attributes of the
fibers differ from those of linen, and that international standards
and practice as well as the U.S. government recognize the use of
the term "flax" to describe flax fibers that have not been
chemically changed."
"This is an important step in defining the
groundbreaking nature of CRAiLAR," said Jay
Nalbach, Chief Marketing Officer of NAT. "Our process
results in a pure flax product that feels and can be cared for like
cotton, and we believe that articulating that at retail is an
important part of the unique brand proposition for CRAiLAR Flax, to
the merchandising opportunities of our partner brands, and to the
relationship we intend to build with consumers."
NAT today supplies its CRAiLAR Flax to HanesBrands,
Georgia-Pacific, and Brilliant
Global Knitwear for commercial use, and to Levi Strauss & Co.,
Cintas, Carhartt, Ashland, Westex,
Target and PVH Corp for evaluation and development. NAT is in
construction on its first full-scale production facility in
Pamplico, South Carolina, and
anticipates it will be delivering fiber from the facility in Q3
2012. It will partner with Tintoria
Piana and Barnhardt Manufacturing on the processing of that
fiber.
About Naturally Advanced Technologies
Inc.
Naturally Advanced Technologies Inc., through its wholly owned
subsidiary, CRAiLAR® Fiber Technologies Inc., has developed
proprietary technologies for production of bast fibers, cellulose
pulp, and their resulting by-products in collaboration with
Canada's National Research Council. It's renewable and
environmentally sustainable biomass resources from flax, hemp and
other bast fibers offer cost-effective and environmentally
sustainable processing and production, along with 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. For more information, visit
www.naturallyadvanced.com.
Neither the TSX Venture Exchange Inc. nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this 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 NAT'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,
NAT's business and operations are subject to the risks set forth in
its 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. NAT assumes
no obligation to update the forward-looking statements.
SOURCE Naturally Advanced Technologies Inc.