Leading Brands, Inc. News Release

NEWS RELEASE

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Ralph D. McRae
Chairman and CEO
Leading Brands, Inc.
Toll Free: 1-800-729-2746 ext. 238
[email protected]

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Leading Brands Signs License Agreement With The Popstraw Company For Exclusive Use Of Patented Technology In Canada, Company Expects to Generate Revenues from PopStraw within 90 Days

VANCOUVER, BRITISH COLUMBIA, JANUARY 18, 2002 -- LEADING BRANDS, INC. Canada's largest independent, fully integrated food and beverage brand management company, is pleased to announce that it has entered into a multi-year license agreement with The PopStraw Company of Roseville, Michigan for the exclusive use of the PopStraw(tm) Technology in Canada. The Company anticipates selling its first products incorporating the new technology within 90 days.

PopStraw is a unique invention that allows consumers to enjoy their favorite beverages from plastic bottles with drinking straws already packaged inside. With PopStraw Inside(tm), by simply opening a PopStraw bottle, the user is treated to the excitement and convenience of a sanitary plastic drinking straw that pops up - ready to use.

According to The PopStraw Company, existing products adopting the PopStraw technology have seen 10% to 14% increases in sales, even when combined with an increase in price of the product.

Leading Brands Chairman & CEO Ralph D. McRae said: "We are excited to announce our second major milestone so far this year. As our Company continues to build momentum, this remarkable technology will provide us a distinct competitive advantage. PopStraw will immediately begin installing the necessary equipment in our plants, at no cost to Leading Brands. While we will initially include PopStraw in our Johnny's Roadside(tm) line of lemonades and iced teas, we see enormous potential for additional products."

PopStraw President & CEO Peter F Murphy added: "Beverage brand owners are constantly looking for ways to sell more and/or make more. With PopStraw Inside(tm), they can sell more volume and increase margins because consumers both perceive and realize significantly greater value from the PopStraw feature. We are looking forward to this new relationship with Leading Brands."

PopStraw's website is www.popstraw.com.

Leading Brands will distribute its Johnny's Roadside(tm) products utilizing PopStraw in both Canada and the United States, where the Company believes the greatest potential lies for this brand.

Leading Brands, Inc. is the largest independent, fully integrated food and beverage brand company in Canada. The Company's unique Integrated Distribution System (IDS) (TM) offers turnkey, one-stop shopping to food and beverage brand owners. Its subsidiary, Quick, Inc. is building a home replenishment and delivery system for the new economy.

Statements in this news release that are not historical are to be regarded as forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties with respect to the Company's business include general economic conditions, weather conditions, changing beverage consumption trends, pricing, and the availability of rawmaterials and economic uncertainties, including currency.

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