Clearly Canadian Announces Litigation and Corporate Update.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 16, 1999--

Clearly Canadian Beverage Corporation (TSE: CLV; NASDAQ: CCBC) wishes to provide an update to certain litigation matters that the Company has been involved in:

Final Settlement of Dispute with Coronation Insurance and

Class Action Lawsuit 

The Company and Coronation Insurance ("Coronation") have entered into a settlement agreement under which Coronation is required to pay Clearly Canadian Cdn$1.8 million as reimbursement for certain settlement funds and defence costs previously paid by the Company. In connection with the settlement, the Company maintained director and officer liability insurance coverage with Coronation. In February 1996, Coronation commenced an action in the British Columbia Supreme Court which sought to allocate certain settlement and defence costs to the Company. In April 1997, the British Columbia Supreme Court decided that there could only be allocation of the settlement amount to the extent that Coronation could establish that liability of the Company was not entirely concurrent with any liability that could be established against the directors and officers.

Coronation filed a notice of appeal in the British Columbia Following the hearing of the appeal in December 1998, the Court of Appeal issued Reasons for Judgment in January 1999 dismissing Coronation's appeal. As a result, the Company and Coronation have now entered into a settlement agreement under which Coronation is required to pay Clearly Canadian Cdn$1.8 million as reimbursement for the settlement funds and defence costs incurred by the Company. Under the settlement with Coronation, the Company is required to obtain judicial approval to indemnify the directors and officers and such approval is expected within 30 days.

By way of background, the settlement and defence costs referred to above, were incurred by the Company in connection with certain class action lawsuits which were commenced in 1993 in the United States District Court (the "Complaint"). The allegations raised by the plaintiffs in the Complaint were denied and defended. The plaintiffs did not establish or prove any of their allegations of wrongdoing or liability against the Company or its officers and directors. The plaintiffs were initially suing for the sum of US$38.0 million, however, in November 1995, the parties entered into a settlement of the Complaint for US$2.5 million. In connection with the settlement of the Complaint, the Company was required to obtain certain class member and court approvals. On September 3, 1999, final approval for the settlement was obtained from the United States District Court.

Litigation with D. Bruce Horton/Continental Consulting Ltd.

In August 1999 litigation was commenced against the Company in the Supreme Court of British Columbia by D. Bruce Horton and his company, Continental Consulting Ltd. ("Continental"). Mr. Horton is claiming compensation from the Company for allegedly constructively dismissing him as an officer of the Company. Continental is claiming compensation from the Company alleging that the Company terminated its management agreement without cause. Mr. Horton was formerly a director and officer of the Company and is now claiming compensation from the Company and alleging that he was dismissed by the Company without cause. Mr. Horton and Continental are claiming an aggregate of Cdn$2.4 million plus interest and costs. The Company does not accept Mr. Horton's and Continental's allegations and has instructed counsel to vigorously defend the claims and to commence counterclaims for monies owed and damages.

Based in Vancouver, B.C., Clearly Canadian is a leading producer of premium beverages, including Clearly Canadian(R) sparkling flavoured water, Clearly Canadian O+2(TM), REfresher and Orbitz(TM), which are distributed extensively in the United States, Canada and numerous countries worldwide. Clearly Canadian also holds the exclusive license to manufacture and distribute Battery(R) in the United States and Canada. Clearly Canadian also owns CC Beverage (U.S.) Corporation, which produces a line of alternative beverages for retail sale in North America and the Pacific Rim, and operates a home/office commercial delivery business in the U.S. Pacific Northwest. Additional information on the Company may be obtained on the world wide web at www.clearly.ca.

CLEARLY CANADIAN BEVERAGE CORPORATION

Bruce E. Morley, Chief Legal Officer

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 CANADIAN O+2(TM), BATTERY(TM), ORBITZ(TM) and other flavoured and unflavoured beverages. Oy Sinebrychoff Ab of Finland is the registered holder of the trademark Battery(R).