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NEWS RELEASE

LEADING BRANDS, INC. ANNOUNCES Q3 RESULTS

Net Loss for Quarter Improves Over Last Year


VANCOUVER, CANADA - January 6, 2005 - LEADING BRANDS, INC. (NASDAQ: LBIX), North America’s only fully integrated premium beverage company, announces its operating results, for the third quarter of its 2004 fiscal year ended November 30, 2004 and the first three quarters of this fiscal year.

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LEADING BRANDS, INC.		
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(Unaudited)		
(EXPRESSED IN CANADIAN DOLLARS)
                                                         Three months     Three months      Nine months     Nine months
                                                         ending           ending            ending          ending  
					      		 November 30,     November 30,      November 30,    November 30,
                                                         2004             2003              2004            2003
---------------------------------------------------------------------------------------------------------------------
Sales                                                 $    8,731,984    $  12,490,163   $   36,064,901  $   47,354,806
Expenses (Income) 		
Cost of sales                                              6,447,310        9,726,051       25,251,756      36,012,902
Operations, selling, general 
& administration expenses                                  2,593,038        3,039,739        8,638,844      11,058,965
Depreciation and amortization                                310,154          398,152          917,658       1,203,917
Interest expense                                             102,707          109,987          306,349         350,086
Other income from settlements and sale of assets                  32           11,568         (884,932)         11,568
                                                      ----------------------------------------------------------------
Total Expenses                                             9,453,241       13,285,497       34,229,675      48,637,438
                                                      ----------------------------------------------------------------
Net income (loss) before taxes                              (721,257)        (795,334)       1,835,226      (1,282,632)
                                                      ----------------------------------------------------------------
Income tax - current                                           5,142                -            4,738               -           
Income tax - provision future income tax                     176,692           35,755       (1,162,898)        946,785
                                                       ---------------------------------------------------------------
Net Income                                                  (539,423)        (759,579)         677,066        (335,847)
                                                       ---------------------------------------------------------------
Deficit, beginning of period, as previously reported     (25,636,604)     (22,789,132)     (25,735,980)    (23,212,864)
Adjustment for change in accounting for  stock-based 
 compensation                                                      -                -       (1,117,113)              -
                                                       ---------------------------------------------------------------
Accumulated deficit, beginning of period,  as restated   (25,636,604)     (22,789,132)     (26,853,093)    (23,212,864)
                                                        ---------------------------------------------------------------
Deficit, end of period                                 ($ 26,176,027)   ($ 23,548,711)   ($ 26,176,027)  ($ 23,548,711)
                                                        ---------------------------------------------------------------		
EARNINGS (LOSS) PER SHARE		
   Basic                                                     $ (0.04)         $ (0.05)          $ 0.04         $ (0.02)
   Fully diluted                                             $ (0.04)         $ (0.05)          $ 0.04         $ (0.02)
Weighted average number of shares outstanding             15,042,807       15,037,971       15,041,042      14,919,597
-----------------------------------------------------------------------------------------------------------------------
LEADING BRANDS, INC.		
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(Unaudited)		
(EXPRESSED IN UNITED STATES DOLLARS)
                                                         Three months     Three months     Nine months       Nine months
                                                         ending November  ending November  ending November   ending November
                                                         30, 2004         30, 2003         30, 2004          30, 2003
---------------------------------------------------------------------------------------------------------------------
Sales                                                 $    7,021,538    $   9,369,965   $   27,434,496  $   34,137,067
Expenses (Income) 		
Cost of sales                                              5,184,392        7,296,362       19,229,363      25,969,953
Operations, selling, general 
& administration expenses                                  2,085,107        2,280,375        6,601,932       7,985,255
Depreciation and amortization                                249,400          298,689          702,881         870,908
Interest expense                                              82,589           82,589          234,572         253,295
Other income from settlements and sale of assets                  26            8,678         (664,936)          8,678
                                                       ---------------------------------------------------------------
Total Expenses                                             7,601,514        9,966,615       26,103,812      35,088,089
                                                       ---------------------------------------------------------------
Net income (loss) before taxes                              (579,976)        (596,650)       1,330,684        (951,022)
                                                       ---------------------------------------------------------------
Income tax - current                                           4,135                -            3,835               -           
Income tax - provision future income tax                     142,081           26,823         (859,514)        688,764
                                                       ---------------------------------------------------------------
Net Income                                                  (433,760)        (569,827)         475,005        (262,258)
                                                       ---------------------------------------------------------------
Deficit, beginning of period, as previously reported     (17,451,636)      (15,368,992)    (17,524,051)    (15,676,561)
Adjustment for change in accounting for  stock-based 
 compensation                                                     -                  -        (836,350)              -
                                                       ---------------------------------------------------------------
Accumulated deficit, beginning of period,  as restated   (17,451,636)     (15,368,992)     (18,360,401)    (15,676,561)
                                                        ---------------------------------------------------------------
Deficit, end of period                                 ($ 17,885,396)   ($ 15,938,819)   ($ 17,885,396)  ($ 15,938,819)
                                                        ---------------------------------------------------------------		
EARNINGS (LOSS) PER SHARE		
   Basic                                                     $ (0.03)         $ (0.04)          $ 0.03         $ (0.02)
   Fully diluted                                             $ (0.03)         $ (0.04)          $ 0.03         $ (0.02)
Weighted average number of shares outstanding             15,042,807       15,037,971       15,041,042      14,919,597
-----------------------------------------------------------------------------------------------------------------------

 

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