Clearly Canadian Announces Second Quarter Results.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Aug. 14, 2001

Clearly Canadian Beverage Corporation (OTCBB:CCBC)(TSE:CLV.) today reported financial results for its second fiscal quarter ended June 30, 2001.

(ALL FIGURES BELOW AND IN THE ATTACHED SCHEDULES ARE STATED IN U.S. DOLLARS).

Earnings (loss) before interest, taxes, depreciation and amortization ("EBITDA") for the three months ended June 30, 2001 were ($279,000) on sales revenues of $9,151,000 compared to EBITDA of ($439,000) on revenues of $9,436,000 for the comparable period in 2000. EBITDA for the six months ended June 30, 2001 were ($465,000) on sales revenues of $15,839,000 compared to EBITDA of ($1,736,000) on revenues of $15,480,000 for the same period in 2000.

"Our sales performance for the second quarter of 2001 reflects a decrease of 3.1% in overall sales for the Company, however, overall sales for the first six months were up by 2.3%. The decrease in sales for the second quarter reflects the sale of the Company's Home and Office division effective May 1st 2001. "In the second quarter, we also strengthened our distribution system through the addition of distributors who can more effectively move our products to both the grocery and single-serve segments of our business such as convenience stores, deli's etc.," said Mason.

Mason noted that the Company's operating profitability continued to improve compared to last year, although the Company has increased some sales and marketing costs in the second quarter, primarily by increasing promotional allowances and slotting expenditures. These costs are related to the national launch of the Company's new Reebok Fitness Water, which will continue to roll out into additional new U.S. markets throughout the rest of 2001.

Gross profit for the three months ended June 30, 2001 was $3,242,000 (35.4%) compared to $3,460,000 (36.7%) for the same period in 2000. Gross profit for the six months ended June 30, 2001 was $5,858,000 (37.0%) compared to $5,731,000 (37.0%) for the six months ended June 30, 2000. A continued focus on improving efficiencies at production facilities has led to sustaining the overall gross profit.

Net income (loss) for the three months ended June 30, 2001 was $1,394,000, or $0.21 per share, compared to ($960,000), or ($0.16) per share, for the same period in 2000. Net income (loss) for the six months ended June 30, 2001 was $690,000, or $0.10 per share, compared to ($2,750,000), or ($0.45) per share for the six months ended June 30, 2000. Net income includes an net gain of $2,118,000 on the disposal of the assets related to the Home and Office division and to the disposal of certain obsolete equipment.

Selling, general and administrative expenses were $3,521,000 for the three months ended June 30, 2001 compared $3,899,000 for the same period in 2000. Selling, general and administrative expenses were $6,323,000 for the six months ending June 30, 2001 compared to $7,467,000 for the same period in 2000. The decrease in selling, general and administrative expenses for the six months ended June 30th 2001, is attributable in most part to a decrease in costs relating to promotional items, professional and consulting fees.

Based in Vancouver, B.C., Clearly Canadian is a leading producer of premium beverages, including Clearly Canadian(R) sparkling flavored water, Clearly Canadian O(plus)2(R) and Tre Limone(TM), which are distributed in the United States, Canada and numerous countries worldwide. Clearly Canadian holds the exclusive license to manufacture, distribute and sell Reebok Fitness Water in the United States, Canada and the Caribbean. Clearly Canadian also owns CC Beverage (U.S.) Corporation, a Washington State company, which produces and distributes Cascade Clear(TM) and Clearly Canadian products in the United States and other countries, as well as co-packing (bottling) for other manufacturers' brands. Additional information on Clearly Canadian and CC Beverage 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. 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 favourable 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. All forward-looking statements are made pursuant to the Securities Litigation and Reform Act of 1995. 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, Chairman and C.E.O.

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), CASCADE CLEAR(TM), REEBOK FITNESS WATER, CLEARLY CANADIAN O(plus)2(R), TRE LIMONE(TM) and other flavoured and unflavoured beverages. Reebok is the registered trademark of Reebok.k

Clearly Canadian Beverage Corporation
Consolidated Statement of Operations and Deficit
For the Six months ended June 30, 2001 and 2000
(Stated in Thousands of United States Dollars)

                          Unaudited                  Unaudited
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                          for 3 months               for 6 months
                          ended June 30              ended June 30
                      2001            2000         2001         2000
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Sales              $ 9,151           9,436       15,839       15,480

Cost of Sales        5,909           5,976        9,981        9,749
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Gross Profit         3,242           3,460        5,858        5,731

Selling, General
 and Administrative
  Expenses           3,521           3,899        6,323        7,467
Amortization           410             459          887          883
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Loss before the
 following:           (689)           (898)      (1,352)      (2,619)

Interest on long
 term debt              39              96          130          189
Other income - net      (4)            (21)         (36)         (36)
Gain on sale
 of assets          (2,118)            (13)      (2,136)         (22)
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Earnings (Loss)
 before income
  taxes              1,394            (960)         690       (2,750)

Income taxes             0               0            0            0
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Net earnings (loss)
 for the period      1,394            (960)         690       (2,750)

Deficit - beginning
 of period         (40,935)        (35,572)     (40,231)     (33,782)
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Deficit - end
 of period        $(39,541)        (36,532)     (39,541)     (36,532)
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Earnings (loss)
 per share        $   0.21           (0.16)        0.10        (0.45)
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Weighted average
 shares
  outstanding    6,640,682       6,045,682    6,640,682    6,049,098
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Clearly Canadian Beverage Corporation
Consolidated Balance Sheet
As At June 30, 2001 and December 31, 2000
(Stated in Thousands of United States Dollars)         Unaudited
---------------------------------------------------------------------
                                      June 30           December 31
                                         2001                  2000
ASSETS
Current
 Cash and cash equivelents           $      0                   296
 Accounts receivable                    4,337                 2,825
 Inventories                            3,691                 2,115
 Prepaid expenses, deposits
  and other assets                        503                   146
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                                        8,531                 5,382

Long term investments                      89                    87

Distribution rights                     2,053                 2,179

Long-term receivables                     502                   502

Property, plant and equipment
 (Note 2 and 4)                        14,537                16,516

Goodwill (Note 4)                       2,222                 3,277
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                                     $ 27,934                27,943
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LIABILITIES
Current
 Bank indebtedness                   $    143                     0
 Accounts payable and
  accrued liabilities                   6,315                 4,617
 Corporate income taxes payable            44                    87
 Current portion of long
  term debt (Note 3 and 4)                333                   693
---------------------------------------------------------------------
                                        6,835                 5,397

Long-term debt (Note 3 and 4)           3,433                 5,427

Other liabilities                          16                    39
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                                       10,284                10,863
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SHAREHOLDERS' EQUITY
Share Capital
 Issued  7,013,682 (2000 - 7,013,682)
  without par value
  Outstanding 6,640,682 (2000 -
   6,640,682)                          58,208                58,208
  Warrants 692,740 (2000 - 692,740)       423                   423

Cumulative translation adjustment      (1,440)               (1,320)

Deficit                               (39,541)              (40,231)
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                                       17,650                17,080
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                                     $ 27,934                27,943
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