Clearly Canadian Announces Second Quarter Results.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 13, 2003

Clearly Canadian Beverage Corporation (TSX: CLV; OTCBB: CCBC) today reported financial results for its second fiscal quarter ended June 30, 2003. (ALL FIGURES BELOW AND IN THE ATTACHED SCHEDULES ARE STATED IN U.S. DOLLARS).

As previously announced (February 27, 2002), the Company's wholly owned U.S. subsidiary, CC Beverage (U.S.) Corporation, sold certain of its business assets. This divestiture included the sale of its private label co-pack bottling business, Cascade Clear brand water business and related production assets (which sale was completed in February 2002). As a result of this divestiture, for reporting purposes, the results and financial position of the Company now reflect the results of the "continuing operations" for the three months ended June 30th and the six months ended June 30th, 2003.

Results of Continuing Operations for the second quarter of 2003:

Net loss from continuing operations for the three months ended June 30, 2003 was $(677,000) or $(0.10) per share on sales revenues of $3,931,000 compared to $(359,000) or $(0.05) per share on sales revenues of $6,365,000 for the same period in 2002.

Net loss from continuing operations for the six months ended June 30, 2003 was $(1,305,000) or $(0.19) per share on sales revenues of $7,083,000 compared to $(295,000) or $(0.04) per share on sales revenues of $11,783,000 for the six months ended June 30, 2002.

"We believe our sales for the first half of 2003 are down due in part to economic conditions in North America, soft beverage industry sales in the US, and less than expected sales for our enhanced water brand, Reebok fitness water beverage. During this period, we focused our efforts on building a stronger foundation of committed distribution partners that we believe can provide industry-leading resources for our brands. Our sales for the first half of 2003 are also down due in part to the effects of the transition to these new distribution partners. This transition process involved inventory sell down by discontinued distributors during their termination notice periods; during these termination notice periods, however, the newly appointed distributors were not able to purchase inventory from the Company. Clearly Canadian is encouraged by the sales trends that we believe are beginning to materialize in Southern California, where the transition to a new distributor has been in effect for some time. We believe that we have made the strategic decisions for our distribution system that can provide growth for brand Canadian going forward," said Douglas Mason, President and CEO of Clearly Canadian Beverage Corporation.

Selling, general and administrative expenses were $1,761,000 for the three months ended June 30, 2003 compared with $2,268,000 for the same period in 2002, representing a reduction in such expenses of 22%. Selling, general and administrative expenses were $3,232,000 for the six months ending September 30, 2003 compared to $3,989,000 for the same period in 2002, representing a reduction in such expenses of 19%.

Mason added: "In the second quarter, we continued to further control SG&A to align our expenses with sales. At the same time, we continued to provide brand-building elements, like our cross-marketing promotion with The Canadian Tourism Commission, to support our sales team and distribution partners in 2003. Looking forward to the second half of 2003, the Company is focused on continuing to build on the effectiveness of its distribution system and capitalize on its strong brand awareness and equity within the marketplace."

Gross profit for the three months ended June 30, 2003 was $1,203,000 (31%) compared to $1,992,000 (31%) for the same period in 2002. Gross profit for the six months ended June 30, 2003 was $2,104,000 (30%) compared to $3,880,000 (33%) for the six months ended September 30, 2002.

- Based in Vancouver, B.C., Clearly Canadian markets premium alternative beverages and products, including Clearly Canadian(R) sparkling flavored water, Clearly Canadian O+2(R) and Tre Limone(R) which are distributed in the United States, Canada and various other countries. Clearly Canadian also holds the exclusive license to manufacture, distribute and sell certain Reebok beverage products in the United States, Canada and the Caribbean. Additional information on Clearly Canadian may be obtained on the world wide web at www.clearly.ca.

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and include the Company's analysis of its product distribution systems, and anticipated changes thereto, and the Company's expectations regarding the effects of its restructuring efforts, and anticipated reductions in expenses associated therewith, and the Company's anticipated product distribution changes and promotional and marketing activities and the potential benefits of such changes, efforts and activities on its results of operations in future periods. Actual results may differ materially from those currently anticipated due to a number of factors including, but not limited to, general economic conditions, changing beverage consumption trends of consumers, the Company's ability to generate sufficient cash flows to support capital expansion plans and general operating activities, competition, pricing and availability of raw materials, the Company's ability to maintain the current and future retail listings for its beverage products and to maintain favorable supply, production and distribution arrangements, laws and regulations and changes thereto that may affect the way the Company's products are manufactured, distributed and sold and other factors beyond the reasonable control of the Company. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission and with the British Columbia and Ontario Securities Commissions.

CLEARLY CANADIAN BEVERAGE CORPORATION

Douglas L. Mason, President and C.E.O.

CLEARLY CANADIAN BEVERAGE CORPORATION is the registered holder of various trademarks, including CLEARLY CANADIAN(R). CLEARLY CANADIAN BEVERAGE CORPORATION, and its wholly owned subsidiaries, produce, distribute and market CLEARLY CANADIAN(R), CANADIAN O+2(R), TRE LIMONE(TM) and certain Reebok beverage products. Reebok is the registered trademark of Reebok International Ltd. and its affiliated companies.

Clearly Canadian Beverage Corporation
Consolidated Balance Sheets
As at June 30, 2003 and December 31, 2002
(in thousands of United States dollars, except where indicated)

                                                   Unaudited

                                               June 30   December 31
                                                  2003          2002
                                                     $             $
--------------------------------------------------------------------
Assets

Current assets
Accounts receivable                              1,370         1,191
Inventories                                      1,632         2,439
Assets held for sale                               935           935
Prepaid expenses, deposits and other assets        428           271
--------------------------------------------------------------------
                                                 4,365         4,836

Long-term investments                              107            88
Distribution rights                              1,913         1,913
Property, plant and equipment                    2,883         3,042
Assets held for sale                               462           462
Prepaid contracts                                  257           306
--------------------------------------------------------------------
                                                 9,987        10,647
--------------------------------------------------------------------
Liabilities
Current liabilities
Bank indebtedness                                  823           702
Accounts payable and accrued liabilities         4,148         3,578
Current portion of long-term debt                  133           116
Convertible debenture                              420           416
--------------------------------------------------------------------
                                                 5,524         4,812
Long-term debt                                   1,291         1,112
--------------------------------------------------------------------
                                                 6,815         5,924
--------------------------------------------------------------------
Shareholders' Equity

Capital stock
Authorized
 200,000,000 common shares without par value
 10,000,000 preferred shares with a par value
  of CA$1 each
Issued
 7,168,682 (2002 - 7,043,682) common shares
  without par value
Outstanding
 6,795,682 (2002 - 6,670,682) common shares
  without par value                             58,272        58,237
Warrants
 1,527,500 (2002 - 1,500,240)                      190           415
Options
 1,725,395 (2002 - 1,685,802)                       13             -
Equity component of convertible debenture           26            26
Contributed surplus                                256             -
Cumulative translation adjustment               (1,713)       (1,388)
Deficit                                        (53,872)      (52,567)
--------------------------------------------------------------------
                                                 3,172         4,723
--------------------------------------------------------------------
                                                 9,987        10,647
--------------------------------------------------------------------



Clearly Canadian Beverage Corporation
Consolidated Statements of Operations
For the six months ended June 30, 2003 and 2002

(in thousands of United States dollars, except where indicated)

                          Unaudited                 Unaudited
                      For the 3 months ended  For the 6 months ended
                      June 30     June 30     June 30        June 30
                         2003        2002        2003           2002
                            $           $           $              $
--------------------------------------------------------------------
Sales                   3,931       6,365       7,083         11,783

Cost of sales           2,728       4,373       4,979          7,903
--------------------------------------------------------------------
Gross profit            1,203       1,992       2,104          3,880

Selling, general and
 administration
 expenses               1,761       2,268       3,232          3,989
Amortization               80         105         158            217
--------------------------------------------------------------------
Loss before the
 following               (638)       (381)     (1,286)          (326)

Other income (expense)
 - net                    (37)         26         (16)            36
Interest on long-term
 debt                      (2)         (4)         (3)            (5)
--------------------------------------------------------------------
Loss before income
 taxes                   (677)       (359)     (1,305)          (295)

Provision for income
 taxes                      -           -           -              -
--------------------------------------------------------------------

Loss for the period      (677)       (359)     (1,305)          (295)
Deficit - Beginning of
 period               (53,195)    (48,920)    (52,567)       (48,984)
--------------------------------------------------------------------
Deficit - End of
 period               (53,872)    (49,279)    (53,872)       (48,279)
--------------------------------------------------------------------

Basic and diluted
 loss per share         (0.10)      (0.05)      (0.19)         (0.04)
--------------------------------------------------------------------
Weighted average
 shares outstanding 6,795,682   6,668,264   6,710,750      6,654,549
--------------------------------------------------------------------