CRAiLAR Receives CAD$2.0 Million Private Placement from Hydra Ventures B.V.

 CRAiLAR Receives CAD$2.0 Million Private Placement from Hydra Ventures B.V.

PR Newswire

PORTLAND, OR, Dec. 19, 2013

PORTLAND, OR, Dec. 19, 2013 /PRNewswire/ - CRAiLAR Technologies Inc. (TSXV:
CL) (OTCQB: CRLRF), which produces and markets CRAiLAR® Flax fiber The
Friendliest Fiber On The Planet™, today announced that it has finalized
negotiations to enter into a proposed CAD$2.0 million private placement
investment (the "Private Placement") with Hydra Ventures B.V., the corporate
venture arm of the adidas Group (FRA: ADS).

In conjunction with the proposed Private Placement, Hydra Ventures has agreed
to subscribe for up to 3,333,333 units of the Company (each a "Unit"), at a
proposed subscription price of CAD$0.60 per Unit, with each Unit being
comprised of one common share and one common share purchase warrant of the
Company with each warrant being exercisable for a period of five years from
closing at an exercise price of CAD$0.70 per warrant common share.

Proceeds from  the proposed  Private Placement  will be  utilized for  general 
corporate and working capital purposes.

"We are  very pleased  that adidas  Group's Hydra  Ventures have  invested  in 
CRAiLAR," said Ken  Barker, CEO.  "As a global  leader in  the advancement  of 
sustainability and sports performance, we  believe that our relationship  with 
such an iconic sports  company will help deliver  a CRAiLAR brand and  product 
message to some of the most loyal consumers on the planet."

In conjunction with the completion  of the proposed Private Placement  certain 
Company creditors have agreed to extend the term of their current loans to the
Company (the  "Extension") and,  in consideration  thereof, one  such  Company 
creditor and director will receive an aggregate of 181,666 bonus common shares
of the Company, at a deemed issuance  price of CAD$0.60 per common share,  for 
such Extension (the "Bonus Share Issuance").

Each of the proposed Private Placement and Bonus Share Issuance by the Company
is subject to definitive documentation and prior TSX Venture Exchange approval
to the completion thereof.

About HYDRA VENTURES

Launched in 2011, Hydra  Ventures is the corporate  venture arm of adidas  AG, 
and is  dedicated  to exploiting  new  market opportunities  by  creating  and 
developing new  consumer  brands  and  trends in  the  apparel,  footwear  and 
sports-related areas. In addition special consideration is given to  companies 
with sustainable or socially responsible attributes. For more information, see
www.hydra-ventures.com

About CRAiLAR Technologies Inc.

CRAiLAR(R)  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,  Tuscarora  Yarns,  Target  Corp.  and  Kowa 
Company for commercial use, and to Levi Strauss & Co., Carhartt, Ashland,  PVH 
Corp.,  Cotswold  Industries,  Cone  Mills  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.

Safe Harbor Statement

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 
materially  from  those  reflected   in  the  forward-looking  statements   or 
information  and  including,  without  limitation,  risks  and   uncertainties 
relating to:  completion of  a  definitive agreement  and acquisition  of  the 
European Wet Processing facility, 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.

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

SOURCE Crailar Technologies Inc.

Contact:

Media Contact:
Jay Nalbach, CMO
(503) 387-3941
pr@crailar.com

Investor Relations Contact:
Ted Sanders, CFO
(503) 387-3941
ir@crailar.com
 
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