Clearly Canadian Forms Strategic Partnership with Tree Brewing and Agrees To Make $1 Million Investment.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 20, 2000

Clearly Canadian (Nasdaq:CCBC)(TSE:CLV.) Geoff Twyman, President of Tree Brewing Company Ltd. and Douglas Mason, Chairman and Chief Executive Officer of Clearly Canadian Beverage Corporation, announced today that Clearly Canadian and Tree Brewing have entered into a letter of intent pursuant to which Clearly Canadian will invest $1,070,000 in Tree. Clearly Canadian will subscribe for 5,350,000 Units at a price of $0.20 each. Each Unit will consist of one Common Share and one Common Share Purchase Warrant. Each Common Share Purchase Warrant will be exerciseable for two years at a price of $0.20 per share in the first year and $0.25 per share in the second year. If the Warrants are exercised, Clearly Canadian would own approximately 51% of Tree's Common Shares, on a fully-diluted basis.

&uot;Clearly Canadian is excited by partnering with Tree Brewing, British Columbia's third largest and its fastest growing micro-brewery. We believe there is great potential to grow Tree Brewing's business and increase its market share in Western Canada and to further Tree Brewing's expansion through other key acquisitions,&uot; said Douglas Mason, President and CEO of Clearly Canadian Beverage Corporation.

Geoff Twyman said, &uot;Tree Brewing is very pleased that we have been able to attract a senior partner of the calibre of Clearly Canadian. The opportunity to grow Tree's business by accessing Clearly Canadian's knowledge of beverage distribution outside of British Columbia and Alberta is exciting. We hope that Tree will be able to grow its business in a way that we could not have achieved on our own. Clearly Canadian's investment in Tree will also bring a measure of financial stability to Tree, allowing us to focus on making great beer.&uot;

Completion of this transaction and the issuance of the Units is subject to approval of the boards of both companies and the receipt of regulatory approval including the approval of the Canadian Venture Exchange. It will also be subject to receipt of the approval of Tree's shareholders. Tree expects to set the date for the necessary shareholders' meeting shortly. The Units to be issued to Clearly Canadian will not be qualified by a prospectus. The transaction is also subject to the parties entering into a definitive agreement, expected to be signed by January 31, 2000.

The additional equity raised will be used by Tree for marketing and promotions as well as for packaging development and on-going administrative and working capital requirements. Pending completion of the transaction, Clearly Canadian has advanced $50,000 to Tree as a bridging loan to be secured by a general security agreement over Tree's assets. The loan will be applied against the subscription price to be paid by Clearly Canadian.

Tree has also agreed to issue an aggregate of 250,000 Units to Martyn Element &Associates Corporate &Project Finance Ltd. at a price of 20 cents each as a finder's fee in connection with this transaction. Each Unit will consist of one Common Share and one Common Share Purchase Warrant each with the same terms as the Warrants to be issued to Clearly Canadian.

Clearly Canadian and Tree have agreed that Clearly Canadian will be entitled to representation on Tree's board of directors commensurate with Clearly Canadian's ownership position.

Further, Tree has agreed that Clearly Canadian will have the right to subscribe for further Common Shares of Tree or securities convertible into Common Shares from time to time in order to maintain its then current pro rata shareholding of Tree in respect of all issuances of Common Shares or securities convertible into Common Shares which Tree proposes to undertake, other than pursuant to currently outstanding securities or pursuant to Tree's Stock Option Plan. Any such subscription by Clearly Canadian will be on the same terms and conditions as the terms and conditions of the underlying issuance by Tree to which such subscription relates.

Tree Brewing Company Ltd. is BC's third largest and its fastest growing micro-brewery. Located in the heart of the Okanagan Valley, Tree is entering its fourth year of brewing beer and makes a full line of premium, all natural ales and lagers. All products are made using only specialty malt, hops, purified water and yeast. Tree is distributed throughout British Columbia and Alberta in six packs, twelve packs, 30 litre kegs and 50 litre kegs. In addition to its beer brands, Tree distributes three BC Estate wines and is agent for several premium spirits in BC. Tree's subsidiary, the Okanagan Juice and Wine Laboratory, ensures the quality and consistency of all of Tree's craft beer and provides quality control services and wine-making supplies to BC's fast-growing wine industry.

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, and the exclusive distribution rights to distribute Jamaican Gold(R) in North American, 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.

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 and Tree Brewing's businesses include general economic conditions, changing beverage consumption trends of consumers, pricing and availability of raw materials and political and economical uncertainties, including currency fluctuation in the countries in which Clearly Canadian and Tree Brewing carry on business.

ON BEHALF OF CLEARLY CANADIAN BEVERAGE CORPORATION

Douglas Mason, Chairman and Chief Executive Officer

ON BEHALF OF TREE BREWING COMPANY LTD.

Geoff Twyman, President

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.