CANADA: Leading Brands Enters Into Exclusive License Agreement With IN ZONE Brands, Inc.

Leading Brands, Inc. (NASDAQ: LBIX), Canada's largest independent, fully integrated food and beverage brand management company, today announced that it has entered into a License Agreement with IN ZONE Brands, Inc. of Atlanta, Georgia. The agreement grants Leading Brands the exclusive, royalty free right to use the "BellyWashers"(TM) trademark in connection with the sale, marketing and distribution in this line of novelty children's drinks.BellyWashers(TM) are 100% Vitamin-C fortified drinks packaged in high kid-appeal, collectable, refillable, dishwasher-safe bottles that are designed in the likeness of such hugely popular children's characters as Saban Entertainment's Power Rangers(TM). The products' play value does not diminish once kids finish the drink, appealing to kids and moms alike.IN ZONE has a multi-year licensing agreement with Saban Merchandising, Inc. to develop a collectable line of BellyWashers(TM) using Saban's Power Rangers(TM) characters, which were declared the #1 Male Action Toy Brand of the decade by NPD Group, Inc., the toy industry sales tracking organization. With over $5 billion in worldwide retail sales since its incorporation in 1993, Power Rangers(TM) has been named the top selling action figure of the decade by NPD Group, Inc."Kid appeal is the driving force behind everything we develop," says IN ZONE's President and CEO, Jim Scott. "New BellyWashers(TM) characters and flavors will be released every 60 to 90 days and shall be available to Leading Brands once approved for sale in Canada. IN ZONE already is developing additional BellyWashers(TM)."In announcing the contract, Ralph McRae, Leading Brand's Chief Executive Officer, stated, "We expect BellyWashers(TM) not only to please kids and parents, but our shareholders as well, as sales within Canada grow during the next few years."