DEAR SHAREHOLDERS:

LBIX MONTHLY NEWSLETTER

Each of those resolutions passed with the great majority of shareholders voting in favor.

We anticipate issuing our Q2 financial results the week of October 6, 2003 and will arrange a conference call in conjunction with that release. In anticipation of that call, this Newsletter will be a little shorter than usual.

On the new product front, Red TREK® NITRO has been finalized for release later this month in both the US and Canada. In the US it will be accompanied with a new label that we will shortly unveil on the www.trekenergy.com website. We are also looking forward to the Chicago NACS show, which starts on October 12, 2003. We will there introduce our new brand.

In Canada we have just arranged the listing of Pez® 100% Juices™, TREK® OPBs and Hansen’s Monster™ Energy Drink in Sam’s Club&reg.; That is a significant breakthrough for those brands. We are also this month finalizing listings for TREK® in two major national gas/convenience chains. Once listed there, we will have full listing coverage in that entire segment. The next focus is to expand our listing base in the grocery channel. Sales of the product in Costco® have been excellent.

In the US we have re-introduced the caribiner on the TREK® bottle. We have also obtained important listings in a major New York area drug chain. We are now looking to concentrate our efforts on the markets where we have enjoyed the most support and success with our distributors. Administratively, we found that as our business in the US expanded, our sales offices there were not properly equipped to handle the increased workload. Rather than staffing up our Stamford, Connecticut office with duplicate staff, we have transferred those functions to Edmonton and Vancouver where we already have complete logistics and administrative departments. Sales support for the US will now be provided directly out of our Montreal office, allowing us the win-win scenario of delivering improved service at a reduced cost.

Over this and next month we will be negotiating new and existing agreements with our packaging customers in anticipation of next season. It will be important for us to consolidate and improve efficiencies on our present business and we need to work closely with our customers to assure that happens. We also will be exploring avenues to sell out the balance of our new carbonated line capacity in Vancouver.

I look forward to speaking with you next week. Thank you for your continued support.

Sincerely,

LEADING BRANDS, INC.

Per:

Ralph D. McRae
Chairman & CEO

We Build Brands™

Disclaimer: The Company relies upon the Safe Harbor Laws of 1933, 1934, and 1995 for all public news releases, newsletters and other statements. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, 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 factors which may be identified from time to time in the Company's public announcement.

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