Cool Canadian Premium Spring Water The Company repackaged its spring water brand in late 1998 with an award winning new label design. The result was a resounding success, the label won an industry award and we've increased sales dramatically. The product is offered in four sizes: 500ml, 710ml with sport cap, 1L with sport cap and 1.5L, all in clear PET bottles.

Country Harvest Country Harvest was a proprietary brand used primarily for institutional service. After a complete redesign of the Country Harvest label and an upgrading of the product contents, we re-launched Country Harvest with a 100% Pure and Natural Juice line in Apple, Orange and Grapefruit Juice flavours. Rounding out the line are 100% Natural Pink Grapefruit and Cranberry Cocktails. The brand is available in two sizes, 300ml and 473ml glass.

Johnny's Roadside Our newest brand is a 100% natural lemonade and iced tea line developed for a young market. Johnny's is interactive too! Check out our Johnny's interactive web site, found at: www.johnnysroadside.com and add your artistic tag to the site. More great flavours to come!

Caesar's Bloody Caesar and Caesar's Caesar Cocktail Our tomato and tomato-clam based products are a huge success in the private label area. The Company has bottled and canned tomato based products for many years and is the premier supplier for many of the grocery chains across Western Canada. Our proprietary tomato-clam product, Bloody Caesar is available in 946ml and 1.89L PET plastic bottles and in 48oz cans; our non-clam tomato product, Caesar Cocktail is available in 48oz cans.

We have the privilege to represent, package and/or distribute a full range of leading brands such as Virgin Cola, Fiji Natural Artesian Water, Hansen's Signature Sodas and Functional Beverages, Natural Sodas and Smoothies lines, Red Devil Power Colas, Seagram's Ginger Ale and Mixers, SoBe Teas and Drinks and Stewart's Fountain Classics. We either license or represent these fine brands under multi-year agreements that provide us with varying levels of responsibility for their packaging, distribution and marketing.

We make leading brands out of beverage products that we develop and package for every major grocery store chain in Western Canada. We have developed an extensive private label program that ranges from the design and formulation of new products to the logistical management and delivery of those products.

Leading Brands is the premier co-packer in Western Canada. From our plants in Edmonton and Vancouver we bottle and can juices and alternative beverages for The Quaker Oats Company, Coca-Cola, Ocean Spray, SoBe and a variety of others.

Our goal in Fiscal 1999 was to strengthen the opportunities realized in the snack food and confectionery category, because of the many logistical and marketing synergies with our beverage business. Through the acquisition of an established food manufacturing and distribution business, and the addition of our existing snack and confection distribution business, this year we formed our Food Division. We now represent a strong contingent of premium food and snack products, including proprietary brands 1st Choice, Alamo, Marlene's and Kelsey's. The Company owns a plant producing tortilla chips and cheese puffs, and also a considerable private label operation for retailers across North America.

� 1999-2000, Leading Brands, Inc. All amounts are expressed in Canadian dollars.