Shareholder Newsletter

July 1, 2005 - Issue No. 22

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DEAR FELLOW SHAREHOLDERS:

LBIX MONTHLY NEWSLETTER

On Tuesday, June 28, 2005 our Annual General Meeting was held in Vancouver.  I am pleased to report that each item on the agenda was approved by a majority in excess of 90% of the votes cast on that issue.  I also wish to express my appreciation to Iain Harris and Doug Carlson for agreeing to serve another term as directors of the Company.  Their advice and counsel has been invaluable over the years.

Our new www.LBIX.com website is here.  In addition to a more updated look I hope that it provides you a better insight into our Company and brands.  Enjoy!

We are preparing to move Brand X� into the US by launching a test market in the Pacific Northwest.  We should be in a position to start shipments towards the end of this month.  We are also re-positioning our Country Harvest� line of juices in the food service sector.

I perhaps don�t speak enough of our licensed products, in particular Fiji Water� and the Hansen�s line of energy drinks, which include Monster� and most recently Lost�.  We have had long relationships with both these brands and 2005 has been a particularly successful year for both products in Canada.  Year to date, Fiji Water� sales are up more than 400% and our sales of Hansen�s products have risen 160% over the same period last year.  Those are extraordinary successes.

Sincerely,
LEADING BRANDS, INC.

Per:

Ralph D. McRae
Chairman & CEO

Disclaimer:
Certain information contained in this press release includes forward-looking statements. Words such as “believe”, “expect,” “will,” or comparable terms, are intended to identify forward-looking statements concerning the Company’s expectations, beliefs, intentions, plans, objectives, future events or performance and other developments. All forward-looking statements included in this press release are based on information available to the Company on the date hereof. Such statements speak only as of the date hereof. Important factors that could cause actual results to differ materially from the Company’s estimations and projections are disclosed in the Company’s securities filings and include, but are not limited to, the following: general economic conditions, weather conditions, changing beverage consumption trends, pricing, availability of raw materials, economic uncertainties (including currency exchange rates), government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other risk factors described from time to time in securities reports filed by Leading Brands, Inc.