Clearly Canadian Announces Second Quarter Results, Brands Outpacing Industry Sales Growth Averages.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 5, 1997-- Clearly Canadian (VSE:CLV., NASDAQ:CLCDF) Clearly Canadian Beverage Corporation today announced financial results for the second quarter ended June 30, 1997 (ALL FIGURES BELOW AND IN THE ATTACHED SCHEDULES ARE STATED IN US DOLLARS).

Sales revenues for the three months ended June 30, 1997 were $17,995,000 compared to $15,740,000 for the same period in 1996 - an increase of 14.3 per cent. Sales revenues for the six months ended June 30, 1997 were $28,506,000 compared to $26,005,000 for the comparable six months of 1996 - an increase of 9.6 per cent.

Gross profit for the three months ended June 30, 1997 was $6,248,000 (34.7 per cent) compared to $5,530,000 (35.1 per cent) for the same period in 1996. Gross profit for the six months ended June 30, 1997 was $9,380,000 (32.9 per cent) compared to $8,499,000 (32.7 per cent) for the comparable six months of 1996.

Net income for the three months ended June 30,1997 was $1,178,000 ($0.05 per share) compared to $691,000 ($0.04 per share) for the same period in 1996. Net income for the six months ended June 30, 1997 was $122,000 ($0.01 per share) compared to $812,000 ($0.05 per share) for the six months ended June 30, 1996.

Selling, general and administrative expenses for the three months ended June 30, 1997 decreased to $4,942,000 compared to $5,076,000 for the comparable period in 1996. Selling, general and administrative expenses have increased to $9,264,000 for the six months ended June 30, 1997 from $8,071,000 for same period in 1996. This increase over the six month period was due to increased spending in the first quarter of 1997 to re-launch Clearly Canadian sparkling flavoured water and expand international distribution of Orbitz. The Company also incurred additional costs in the first quarter of 1997 in operating the additional U.S. territories it recently acquired.

The Company reported restructuring costs of $220,000 incurred in the three months ended June 30, 1997 related to the consolidation of senior management positions as part of its ongoing re-organization to reduce costs and improve cost competitiveness.

Commenting on the results, Douglas L. Mason, Chairman and CEO of Clearly Canadian Beverage Corporation, said: "I'm encouraged by the progress made during the second quarter. The second quarter results demonstrate our focus on innovation as well as on marketing and distribution efficiencies, which we believe are a powerful combination for creating value. Our premium brands delivered strong results, exceeding industry averages for sales growth, despite continued pressure from competition.

"Clearly Canadian plans to build on this second quarter success and continue to invest in brand building initiatives throughout the upcoming third quarter, including seasonal marketing programs, aggressive placement of new distributors and vendors and the anticipated test marketing of an exciting new product line," said Mason.

Statements in this news release that are not historical are to be regarded as forward-looking statements which are subject to risks and uncertainties and that could cause actual results to differ materially. Such risks and uncertainties with respect to Clearly Canadian's business include general economic conditions, changing beverage consumption trends of consumers, pricing and availability of raw materials, and political and economic uncertainties, including currency fluctuation in the countries in which Clearly Canadian carries on business.

Clearly Canadian Beverage Corporation is a publicly held company which trades on both NASDAQ and the Vancouver Stock Exchange. Based in Vancouver, British Columbia, the Company is a leading producer of premium beverages, including its Clearly Canadian(R) sparkling flavoured water brand and its "texturally enhanced" Orbitz(TM) brand, which are distributed extensively in the United States, Canada and numerous countries worldwide. -0-

CLEARLY CANADIAN BEVERAGE CORPORATION
CONSOLIDATED BALANCE SHEET
As at June 30, 1997 and 1996
(Stated in Thousands of U.S. Dollars) (UNAUDITED)


                                        1997        1996
ASSETS
CURRENT
 Cash and short-term deposits         $ 4,518      $ 1,541
 Funds held in escrow                       -        1,000
 Short-term investments                     -           78
 Accounts receivable                   16,130       12,022
 Inventories                            7,733        8,283
 Prepaid expenses and deposits          2,606        2,571
 Corporate income taxes refundable        174        3,067
                                      -------      -------
                                       31,161       28,562

OTHER ASSETS                            2,267        2,783
LONG-TERM INVESTMENTS                   4,793        2,245
DISTRIBUTION RIGHTS                     5,226        4,760
LONG-TERM RECEIVABLES                   2,408        3,028
PROPERTY, PLANT AND EQUIPMENT           9,893        5,922
                                      -------      -------
                                      $55,748      $47,300
                                      -------      -------
LIABILITIES
CURRENT
 Accounts payable and accrued
  liabilities                         $ 8,993      $ 7,507
 Current portion of long-term debt      1,695        1,076
                                      -------      -------
                                       10,688        8,583

DEFERRED LEASE INDUCEMENT                 169          222
LONG-TERM DEBT                            543        1,124
                                      -------      -------
                                       11,400        9,929
                                      -------      -------

SHAREHOLDERS' EQUITY
SHARE CAPITAL                          51,651       41,716
 Issued and outstanding -
 23,855,399 common shares
 without par value (1996 - 17,747,733)
SPECIAL WARRANTS                            -        2,795
RETAINED EARNINGS (DEFICIT)            (7,303)      (7,140)
                                      -------      -------
                                       44,348       37,371
                                      -------      -------
                                      $55,748      $47,300
                                      -------      -------


CLEARLY CANADIAN BEVERAGE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Month Period ended June 30, 1997 and 1996
(Stated in Thousands of U.S. Dollars) (UNAUDITED)

                   For the Three Months   For the Six Months
                      Ended June 30          Ended June 30
                      1997        1996     1997         1996

SALES               $17,995     $15,740    $28,506   $26,005
COST OF SALES        11,747      10,210     19,126    17,506
                    -------     -------    -------   -------
GROSS PROFIT          6,248       5,530      9,380     8,499
SELLING, GENERAL AND
 ADMINISTRATIVE
  EXPENSES            4,942       5,076      9,264     8,071
                    -------     -------    -------   -------
OPERATING INCOME      1,306         454        116       428
OTHER INCOME
 (EXPENSES)              92         237        226       392
WRITE DOWN INVENTORY      -           -          -        (8)
RESTRUCTURING CHARGES  (220)          -       (220)        -
                    -------     -------    -------   -------
EARNINGS BEFORE TAX   1,178         691        122       812
INCOME TAXES              -           -          -         -
                    -------     -------    -------   -------
NET INCOME FOR
 THE PERIOD         $ 1,178     $   691    $   122   $   812
                    -------     -------    -------   -------
EARNINGS (LOSS)
 PER SHARE            $0.05       $0.04      $0.01     $0.05
                    -------     -------    -------   -------
WEIGHTED AVERAGE SHARES
 OUTSTANDING     23,855,399 17,401,326 23,609,636 16,200,819
                 -------------------------------------------

CONTACT: Clearly Canadian Beverage Corporation

Kelly Lendvoy, 604/683-0312