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September 1, 2005 - Issue No. 23 Back to List of Newsletters

DEAR FELLOW SHAREHOLDERS:

LBIX MONTHLY NEWSLETTER

TrueBlue™ continues to exceed our expectations, not only in the chain grocery listings we have been able to secure, but also in the pull through those stores once the product reaches the shelf.  We are making excellent progress in widening the distribution of the brand, both in Canada and the United States.  I know that we aren’t quite everywhere yet, but we are definitely on our way to accomplishing that.

Please understand that once we get the ‘go ahead’ from a significant chain to list the product, it averages almost 12 weeks before the cases actually hit the stores.  Consequently, although we have secured listings in chains across much of the US and Canada, it is still not available to be purchased everywhere.  You will see product popping up in the North East US very shortly.  As we receive confirmation that TrueBlue™ is on the store shelves we will make that information available on www.trueblueberry.com.

Our recent introduction of reduced calorie LiteBlue™ is designed to expand the brand’s shelf space presence in the grocery channel and draw more consumer attention to the growing blueberry category.  Most ‘lighter’ versions of conventional juices and drinks don’t taste very good.  LiteBlue™, on the other hand, has a wonderful taste profile that is virtually identical to TrueBlue™.  I think you’ll enjoy it.

It has been an unusual Summer in Western Canada, where our bottling operations are located.  The first half of Summer was extraordinarily wet and cool, but the last half warmed up nicely.  Consequently, July was slower than we anticipated, but it looks as if September in turn is shaping up to be much stronger than we could have hoped.

We have also been fortunate in being awarded some new business in our Food Division, having recently been appointed as the Canadian sales representative for the products of a large cookie mill.  That revenue will start to flow in earnest this month.

Our goals for the Fall are to continue to expand the listing base of TrueBlue™, primarily in the United States and introduce LiteBlue™ there as well.  We have come a long way in the last 10 months, but there is much yet to do with that exciting brand.  Distribution of TREK® and Soy2o™ in the natural, health and specialty sectors is also a priority.  We are also test marketing a new product that we believe will have significant potential and should have more on that next month.

Thank you for your continued support.

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.