Clearly Canadian - Private Placement Completed.

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 16, 1996-- Clearly Canadian Beverage Corporation (the "Company") wishes to announce that it has completed its private placement of 2,000,000 special warrants at a price of $1.91 per special warrant.

Each special warrant is exchangeable, for no additional consideration, into units, with each unit being comprised of one common share and one non-transferable share purchase warrant. Each share purchase warrant entitles the holder to acquire one additional share at a price of $1.91 per share until May 14, 1997. The Company has agreed to qualify the underlying securities to the special warrants by the filing of an exchange offering prospectus.

If a receipt for a final exchange offering prospectus is not issued on or before September 10, 1996, each special warrant will then be exchangeable into 1.1 common shares and 1.1 non-transferable share purchase warrants. A finder's fee of 75,000 special warrants has been issued in connection with the private placement. The special warrants issued to the finder are exchangeable into 75,000 common shares in the capital of the Company.

The Company also wishes to announce that a previously issued share purchase warrant has been exercised by Clearly Canadian Beverage (U.S.) Corporation ("Clearly U.S.") as to 602,678 common shares in the capital of the Company at a price of $2.24 per share. The share purchase warrant was initially issued in connection with Clearly U.S.'s acquisition of distribution rights from Wesmark, Inc. last year. Clearly U.S. has subsequently sold the shares issued upon exercise of the warrant to an arms' length third party.

ON BEHALF OF THE BOARD OF DIRECTORS

Douglas L. Mason, Director

Chief Executive Officer & President

CLEARLY CANADIAN BEVERAGE CORPORATION is the registered holder of the trademark CLEARLY CANADIAN(R).

CLEARLY CANADIAN BEVERAGE CORPORATION, and its wholly owned subsidiaries, manufacture, distribute and market CLEARLY CANADIAN(R), CLEARLY TEA(TM) and CLEARLY 2(TM) flavoured and unflavoured water beverages. Through distribution and/or licensing agreements, CLEARLY CANADIAN(R) products are sold throughout the United States, Canada, Japan, the United Kingdom, the Republic of Ireland, the Caribbean and other countries worldwide.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Clearly Canadian Beverage Corporation

Douglas L. Mason,

Director, Chief Executive Officer & President

604/683-0312

1-800-663-5658 (Toll free in U.S.A.)

1-800-663-0227 (Toll free in Canada)

604/683-2256 (Fax)