First Quarter, 2013 Highlights:

• Adjusted EBITDA for Q1 was a loss $1.8 million.
• Commenced CRAiLAR production in Pamplico, S.C.
• Completed $4.4 million (net) financing

Victoria, B.C. and Portland, Ore. (April 18, 2013) CRAiLAR Technologies Inc. ("CRAiLAR" or the "Company") (TSXV: CL) (OTCBB: CRLRF), which produces and markets CRAiLAR(R) Flax fiber The Friendliest Fiber On The Planet(TM), today reported a net loss for the first quarter ended March 30, 2013 of $3.4 million or $0.08 per share compared with a net loss of $2.8 million or $0.07 per share for Q1 2012. This quarter's loss included a $0.4 million non-cash impairment loss. The Company's Adjusted EBITDA for the quarter was a loss of $1.8 million unchanged from Q-1 2012. For further information regarding Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to net loss, see "Non-GAAP Financial Measures" below.

"Q1 2013 is an important milestone for us as a company, in that we started production of our first full scale CRAiLAR production facility" stated Kenneth C. Barker, Chief Executive Officer. "Fiber processed at our Pamplico facility was sent to our third party enzyme processor for CRAiLAR processing, and was still in enzyme processing at the end of the quarter. We therefore are looking forward to the current quarter as the first quarter in which we will generate CRAiLAR revenue. In addition, the harvest for flax begins in May and runs through June which will provide additional feedstock for future production."

Cash and cash equivalents and investments at March 30, 2013 were $2.9 million unchanged from December 31, 2012. Changes in cash equivalents were the result of $2.8 million of cash used in operations and $1.9 million of cash invested in property and equipment. This was partially offset by $4.4 million of cash from financing activities through the issuance of $4.7 million of convertible debentures (net $4.2 million after expenses) and $0.2 million of common stock and exchange gains of $0.3 million.

Regulation G, "Conditions for Use of Non-GAAP Financial Measures," and other provisions of the Securities Exchange Act of 1934, as amended, define and prescribe the conditions for use of certain non-GAAP financial information. We provide "Adjusted EBITDA," which is a non-GAAP financial measure. Adjusted EBITDA consists of net income before (a) interest income (expense), (b) income tax provision (benefit), (c) amortization of intangibles and impairment loss, (d) depreciation and amortization, (e) share-based compensation expense, and (f) non-cash write-downs of equipment and inventory.

The Company believes that this non-GAAP financial measure provides important supplemental information to management and investors. This non-GAAP financial measure reflects an additional way of viewing aspects of the Company's operations that, when viewed with the GAAP results and the accompanying reconciliation to corresponding GAAP financial measures, provides a more complete understanding of factors and trends affecting the Company's business and results of operations.

Management uses Adjusted EBITDA as a measure of the Company's operating performance because it assists in comparing the Company's operating performance on a consistent basis by

removing the impact of items not directly resulting from core operations. Internally, this non-GAAP measure is also used by management for planning purposes, including the preparation of internal budgets; for allocating resources to enhance financial performance; for evaluating the effectiveness of operational strategies; and for evaluating the Company's capacity to fund capital expenditures and expand its business. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of developemental companies. Additionally, lenders or potential lenders use Adjusted EBITDA to evaluate the Company's ability to repay loans.

This non-GAAP financial measure is used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. In addition, the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items from the Company's non-GAAP measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring.

A conference call to discuss the Company's first quarter ended March 30, 2013 results, as well as an update on the Company's financing activities, production schedule and ramp up, partner activities, and agricultural activities, is scheduled to begin at 1:30 pm Pacific Daylight Time (4:30 pm Eastern Daylight Time) on Thursday, April 18, 2013. Participants may access the call by dialing 888-329-8862 (North America) or 719-325-2495 (international), 5 to 10 minutes before the call, and use conference ID number 3645532. In addition, the call will be broadcast live over the Internet and accessible through the investor section of the CRAiLAR website: www.crailar.com/company/investors. For those unable to participate in the live call, an audio replay will be available until midnight on May 2, 2013 by dialing 877-870-5176 or 858-384-5517 for international callers, and entering pin number 3645532. A transcript will be available approximately 24 hours after the call on CRAiLAR's investor page.

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, Brilliant Global Knitwear, Tuscarora Yarns, Target Corp. and Kowa Company for commercial use, and to Levi Strauss & Co., Cintas, 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.