NEWS RELEASE
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Ralph D. McRae,
Chairman and CEO
Leading Brands, Inc.
(604) 214-9722 ext. 238
[email protected]
Derek Henrey,
Chief Financial Officer
Leading Brands, Inc.
(604) 214-9722 Ext.313
[email protected]
Strategic Growth International
Stan Altschuler/David Waldman
(516) 829-7111
[email protected]

Leading Brands, Inc. Announces Results for First Quarter of Fiscal 2002


-Net Income $0.08Cdn ($0.05US) Per Share
-Bottling Plants Set Monthly Production Records
-Mt. Woodside Spring Sells Record 1,200,000 US gals. in both May and June
-Response to TREK™ Exceeds Expectations in Test Markets


VANCOUVER, CANADA, July 8, 2002, LEADING BRANDS, INC. (NASDAQ: LBIX, TSX: LBI), Canada's largest independent, fully integrated premium beverage company, is pleased to announce financial results for the first quarter of its 2002 fiscal year ending February 28, 2003.

Net income for the period was $1,106,000Cdn ($703,000US) or $0.08Cdn ($0.05US) per share versus $1,181,000Cdn ($760,000US) or $0.09Cdn ($0.06US) per share for the first quarter ending May 31, 2002. Revenue for the quarter was $17,977,000Cdn ($11,431,000US) versus $20,126,000Cdn ($12,964,000US) in the prior year.

The quarterly revenue reduction is attributable to the Company's transition of its SoBe® beverage business from distribution to co-pack and the consequently lower revenue per case. This is the last year over year quarter revenue comparison which will be adversely affected by that change.

Leading Brands Chairman & CEO Ralph D. McRae said: "Much of our focus over this past quarter has been on preparation for the launch of our two major new brands: TREK™ Optimized Performance Beverage™ which started its roll out in late June and our PEZ® 100% Juice line which is to follow later this Summer. I am proud that our people were able to maintain focus on the bottom line and increasing our core business with all of the activity swirling around these highly anticipated new brands. Our bottling plants are busier than ever, setting monthly volume records."

Mr. McRae added: "We have also recently signed up a major new customer for sales of bulk water from our 22 acre Mt. Woodside Spring Site just outside Vancouver. In the months of May and June, we sold almost 1,200,000 US gallons of water from that site."

Mr. McRae concluded, "Initial consumer response to TREK™ as measured by sales at the limited number of retail outlets presently carrying the product has greatly exceeded our most optimistic expectations. We are now extending our rollout to a wider market area."

Income Taxes:
In accordance with Generally Accepted Accounting Principles, at each balance sheet date the Company is required to reassess any unrecognized future income tax assets and adjust their valuation accordingly. During the quarter the Company determined that, based on current and forecasted earnings trends, it should record future income tax assets in the amount of $576,000Cdn ($366,000US).

We Build Brands(TM)

About Leading Brands, Inc.

Leading Brands, Inc. LBIX (TSX:LBI) is the largest independent, fully integrated premium beverage company in Canada. The Company's unique Integrated Distribution System (IDS)™ offers turnkey, one-stop shopping to food and beverage brand owners, including manufacturing, distribution, sales/marketing and licensing. In addition, Leading Brands produces their own line of beverages such as TREK™, Johnny's Roadside® Iced Tea and Lemonade, Country Harvest® Juices, Caesar's® Bloody Caesar Cocktail, and Cool Canadian® Water. Leading Brands recently undertook a major expansion into the United States, with its US headquarters located in Stamford, CT. 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 raw materials and economic uncertainties, including currency.

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