Clearly Canadian Brands Finalizes Terms for $9.36 Million Financing.

TORONTO -- CLEARLY CANADIAN BRANDS (OTCBB: CCBEF) (the "Company") today announced that on July 14, 2008, the company entered into an agreement with holders of our outstanding $9.36 million senior convertible notes, in resolution of certain disputes between the parties. We are very pleased to have reached a settlement with these note holders and look forward to moving beyond this dispute. Under this Consent, Waiver and Amendment, among other things, the note holders waived certain prior defaults by us and we agreed to amend the conversion price and certain other terms of the securities held by the note holders. In addition, the note holders waived our payment obligations for liquidated damages (estimated at approximately $600,000 through July 14, 2008) with respect to our pending registration statement on file with the SEC, and we are permitted to withdraw this registration statement.

We will file a report on Form 6-K with the U.S. Securities and Exchange Commission shortly, describing the material terms of this agreement and attaching a full copy of the Consent, Waiver and Amendment. We encourage interested readers to review the Form 6-K in its entirety.

Stated Bobby Genovese, Chairman of the Board and CEO of Clearly Canadian Brands "We are extremely pleased to have finalized our financing agreement. We have worked out an arrangement that is agreeable to our note holders; it is an immediate savings of approximately $600,000 in waived fees for Clearly Canadian Brands and potentially saves us millions of dollars in interest payments over the next 3 years. With the adjusted conversion price now set at $1.75 which is a 50% plus premium to today's trading price of $1.15 we now have a more effective agreement, which provides flexibility and opportunity for us. I strongly feel that this agreement clarifies and therefore strengthens our financial position, which in turn frees us up to execute our business model as previously laid out. We will continue to pursue strategic acquisitions, expand existing product lines and open up strategic long term selling relationships with some of the largest retailing groups in the world."

Mr. Genovese added; "I currently am evaluating the possibility of accumulating up to an additional 4 million shares of common stock in the open market. Additionally I will not sell any of my existing position over the next 3 years. With this financing agreement now finally in place, it is my strong belief we have successfully positioned Clearly Canadian Brands to become a leader in the exploding natural and organic sector. We have had stimulating recent developments that continue to open up tremendous selling opportunities for all of our product lines, and we will likely close several highly synergistic acquisitions in the near future. These developments combined will provide tremendous momentum for the new Clearly Canadian Brands for the remainder of 2008 and heading into 2009 and beyond."

About Clearly Canadian Brands

Based in Vancouver, B.C., Clearly Canadian Brands markets premium alternative beverages, including Clearly Canadian(R) sparkling flavored waters and Clearly Canadian dailyEnergy, dailyVitamin and dailyHydration Natural Enhanced Waters which are distributed in the United States, Canada and various other countries. Clearly Canadian's recent acquisition of DMR Food Corporation and My Organic Baby Inc. marks the Company's debut into organic and natural products with a full line of organic baby and toddler foods under the brand names My Organic Baby and My Organic Toddler and a wide range of dried fruit and nut snacks offerings from SunRidge Farms, Naturalife, Sweet Selections, Simply by Nature and Glengrove Organics brands. To find out more about Clearly Canadian Beverage Corp. (OTCBB: CCBEF), visit our website at www.clearly.ca.

Forward Looking Statements

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," "plans," "may," "could," "should," "anticipates," "likely," "believes," "estimates," "potential," "predicts," "continue" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analysis and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including but not limited to, the belief in the opportunities which can exist for our products and the revenue growth for the Company. These assumptions are subject to many risks, and actual results may differ materially from those currently anticipated. These risks include, by way of example and not in limitation, general economic conditions, changing beverage consumption trends of consumers, the Company's ability to generate sufficient cash flows to support general operating activities and capital expansion plans, 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.