LEADING BRANDS, INC. (NASDAQ:LBIX), Canada's largest independent, fully integrated food and beverage brand management company, is pleased to announce record revenues and profits for its fiscal 2000 second quarter and six months ended August 31, 2000. All reported figures are in U.S. dollars unless indicated otherwise.

Revenues for the quarter climbed 57% to $15,875,000 in the second quarter ending August 31, 2000, from $10,235,000 in the second quarter of fiscal 1999. Net income for the period was $546,000 or $0.05 per share compared to a loss of ($672,000), or ($0.10) per share, in the same period of last year.

This year the Company changed from reporting in 13 four-week periods to calendar quarters. Consequently, Q2 1999 was 11 days longer than Q2 2000.

Revenues for the six months ended August 31 rose 86% to $30,814,000 from $16,539,000 for the equivalent period of fiscal 1999. The Company realized a dramatic improvement in net income for the period, reaching $1,091,000, or $0.11 per share, versus a loss of ($1,318,000) or ($0.19) per share last year.

Leading Brands Chairman & CEO Ralph D. McRae commented: "We are very positive about these record results, achieved during a Summer when all other beverage companies reported disappointing sales due to inclement weather. We attribute these results to several key strategic factors: expansion into more markets and more listings within our territories; geographic expansion across central and eastern Canada; the successful introduction of new product brands such as SoBe and Virgin drinks; and greater revenues from our longstanding co-pack customers."

Mr. McRae continued, "On a comparative basis, we have seen an almost 100% increase in sales in the first six months of this year and, more importantly, a $2,410,000 positive swing in net income. Cash flow from operations during the first two quarters was more than $1,970,000. This shows that the efforts we have put into our business over the past year have really taken hold.

"The rapid growth of our business will be enhanced by our recent announcements concerning new products and our recent relationship with Cliffstar Corporation, the largest U.S. independent private label juice company. Our joint venture with them will create the largest North American private label juice entity, which itself could add 15% to our 2001 revenues."

About Leading Brands, Inc.:

Headquartered in Richmond, B.C., Canada, Leading Brands, Inc. is the largest independent food and beverage integrated brand management company in Canada. The Company's unique Integrated Distribution System (IDS) offers turnkey, one-stop shopping to food and beverage brand owners.

LEADING BRANDS, INC.

CONSOLIDATED STATEMENT OF INCOME (LOSS)
(EXPRESSED IN UNITED STATES DOLLARS)

Three Four Six Seven
months periods months periods
ending ending ending ending
August September August September
31, 2000 11, 1999 31, 2000 11,1999
---------------------------------------------------------------------

Sales $15,874,798 $10,234,995 $30,813,741 $16,538,562

Cost of sales 10,781,926 6,636,873 21,089,961 10,135,012
Operations, selling,
general &
administration
expenses 3,893,795 3,523,580 7,388,828 6,457,041
Depreciation and
amortization 462,371 488,867 882,368 837,650
Interest expense 190,970 257,309 361,169 427,107
-------------------------------------------------
15,329,062 10,906,629 29,722,326 17,856,810
-------------------------------------------------
Net income (loss)
before taxes 545,736 (671,634) 1,091,415 (1,318,248)
-------------------------------------------------


INCOME TAXES
Current 229,209 - 458,394 -
Recognition and
utilization of tax
benefits (229,209) - (458,394) -
carried forward,
not previously
recognized -------------------------------------------------
Net income (loss)
after income taxes 545,736 (671,634) 1,091,415 (1,318,248)
Deficit, beginning
of period (10,948,679) (11,668,275) (11,431,650)(11,021,661)
Preferred share
dividends (219,836) - (282,544) -
-------------------------------------------------
Deficit, end of
period (10,622,778) (12,339,910) (10,622,778)(12,339,910)
-------------------------------------------------

EARNINGS (LOSS) PER SHARE
Basic $0.05 $(0.10) $0.11 $(0.19)
Fully diluted $0.04 $(0.10) $0.08 $(0.19)

Weighted average
number of shares
outstanding 10,962,867 7,291,030 9,657,267 7,231,126



CONSOLIDATED STATEMENT OF INCOME (LOSS)

(EXPRESSED IN CANADIAN DOLLARS)

Three Four Six Seven
months periods months periods
ending ending ending ending
August September August September
31, 2000 11, 1999 31, 2000 11,1999
-----------------------------------------------

Sales $23,359,765 $14,836,649 $45,458,943 $23,974,299

Cost of sales 15,865,603 9,620,812 31,114,277 14,691,713
Operations, selling,
general &
administration
expenses 5,729,719 5,107,782 10,899,923 9,360,127
Depreciation and
amortization 680,379 708,661 1,301,681 1,214,257
Interest expense 281,013 372,995 532,788 619,135
-------------------------------------------------
22,556,714 15,810,250 43,848,669 25,885,232
-------------------------------------------------
Net income (loss)
before taxes 803,051 (973,601) 1,610,274 (1,910,933)
-------------------------------------------------


INCOME TAXES

Current 337,281 - 676,315 -
Recognition and
utilization of tax
benefits (337,281) - (676,315) -
carried forward,
not previously
recognized -------------------------------------------------
Net income (loss)
after income taxes 803,051 (973,601) 1,610,274 (1,910,933)
Deficit, beginning
of period (16,196,381) (16,914,332) (16,910,840)(15,977,000)
Preferred share
dividends (323,488) - (416,252) -
-------------------------------------------------
Deficit, end of
period (15,716,818) (17,887,933) (15,716,818)(17,887,933)
-------------------------------------------------


EARNINGS (LOSS) PER SHARE

Basic $0.07 $(0.14) $0.16 $(0.27)
Fully diluted $0.06 $(0.14) $0.13 $(0.27)

Weighted average
number of shares
outstanding 10,962,867 7,291,030 9,657,267 7,231,126