Clearly Canadian Reports Third Quarter and Nine Month Financial Results.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Nov. 14, 1997-- Clearly Canadian Bev(VSE:CLV.) (NASDAQ:CLCDF) Clearly Canadian Beverage Corporation today announced financial results for both the third quarter and the nine months that ended September 30, 1997 (ALL FIGURES BELOW AND IN THE ATTACHED SCHEDULES ARE STATED IN U.S. DOLLARS).

Sales revenues for the three months ended September 30, 1997 were $12,910,000 compared to $14,074,000 for the same period in 1996. Sales revenues for the nine months ended September 30, 1997 were $41,416,000 compared to $40,079,000 for the comparable nine months of 1996. These third quarter results were due mainly to lower than expected sales of Orbitz(TM) in mature U.S. markets.

Gross profit for the three months ended September 30, 1997 was $3,930,000 (30.4 percent of sales) compared to $4,703,000 (33.4 percent) for the same period in 1996. Gross profit for the nine months ended September 30, 1997 was $13,310,000 (32.1 percent) compared to $13,202,000 (32.9 percent) for the comparable nine months of 1996.

Net loss for the three months ended September 30, 1997 was $2,799,000 ($0.12 per share) compared to a net income of $378,000 ($0.02 per share) for the same period in 1996. Net loss for the nine months ended September 30, 1997 was $2,677,000 ($0.11) compared to net income of $1,190,000 ($0.07) for the nine months ended September 30, 1996.

The net loss for the nine months was primarily attributable to the Company's restructuring actions implemented to reduce costs and improve long-term cost competitiveness. These include the consolidation of water source operations in Vernon, B.C. and Formosa, Ontario. Clearly Canadian also reduced overhead costs with the elimination of three senior and twelve middle management positions, which included the provision of severance packages to affected employees. In addition, the Company incurred costs related to operating the additional U.S. territories it had acquired from former master distributors.

Selling, general and administrative expenses for the three months ended September 30, 1997 decreased to $4,307,000 compared to $4,440,000 for the comparable period in 1996. Selling, general and administrative expenses have increased to $13,002,000 for the nine months ended September 30, 1997 from $11,943,000 for same period in 1996. This increase over the nine month period was primarily due to restructuring costs of $1,947,000 incurred in the three months ended September 30, 1997.

Commenting on the results, Douglas L. Mason, President and CEO of Clearly Canadian Beverage Corporation, said the Alternative Beverage industry is going through a competitive period marked by consolidation and intense struggles for market share. To grow and be successful, Mason said that Clearly Canadian, like other national beverage companies, has had to undergo an aggressive and admittedly difficult restructuring phase.

"To compete successfully, Clearly Canadian must build on its strengths of product quality, innovation and a strong balance sheet. While it's unlikely we will achieve profitability in the fourth quarter, improved operating efficiencies and lower fixed costs should improve our long-term profitability. For example, we expect this year's aggressive restructuring efforts will save the Company approximately $4 million in 1998 in selling, general and administrative expenses.

"While we are realistic about the challenges to all players in the Alternative Beverage category, we are optimistic about our ability to manage through these difficult market conditions for several good reasons. The Company has stabilized and increased sales of our core brand, Clearly Canadian sparkling flavoured water. We are on track toward closing the previously announced proposed acquisition of Cascade Clear Water Company - the Pacific Northwest's largest manufacturer of bottled still water as well as the producer of an established portfolio of complementary non-carbonated fruit flavoured beverages. Finally, we intend to introduce new value-added products in 1998 and beyond," 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. There can be no assurance that the Company will continue to be successful nor that it will not encounter difficulties in retaining its current market niche due to a variety of factors such as market acceptance, costs of manufacturing and marketing, and competition in the beverage industry, all of which factors are largely beyond the Company's ability to reasonably predict, much less control.

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.

CLEARLY CANADIAN BEVERAGE CORPORATION

Douglas L. Mason, President & CEO

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), CLEARLY TEA(TM), CLEARLY 2(TM), CLEARLY CANADIAN QUENCHER(TM) and ORBITZ(TM) flavoured and unflavoured beverages.

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CLEARLY CANADIAN BEVERAGE CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 1997 and 1996
(Stated in Thousands of U.S. Dollars)   (UNAUDITED)

                   For the Three Months   For the Nine Months
                      Ended Sept. 30        Ended Sept. 30
                    1997         1996       1997       1996


SALES            $12,910      $14,074     $41,416    $40,079

COST OF SALES      8,980        9,371      28,106     26,877
                 -------      -------     -------    -------
GROSS PROFIT       3,930        4,703      13,310     13,202

SELLING, ADMINISTRATIVE AND
 GENERAL EXPENSES  4,307        4,440      13,002     11,943
                 -------      -------     -------    -------
OPERATING INCOME
 (LOSS)             (377)         263         308      1,259

AMORTIZATION        (283)        (249)       (852)      (720)

OTHER INCOME
 (EXPENSES)          102          364         328        651

WRITE DOWN
 INVENTORY          (294)           0        (294)         0

RESTRUCTURING
 CHARGES          (1,947)           0      (2,167)         0
                 --------     -------      -------   -------

EARNINGS (LOSS)
 BEFORE TAX       (2,799)         378      (2,677)     1,190

INCOME TAXES           0            0           0          0
                 --------     -------      -------   -------

NET INCOME (LOSS)
 FOR THE PERIOD  ($2,799)         378     ($2,677)    $1,190
                 --------     -------      -------   -------
EARNINGS (LOSS)
 PER SHARE        ($0.12)       $0.02      ($0.11)     $0.07
                 --------     -------      -------   -------

WEIGHTED AVERAGE SHARES
 OUTSTANDING  23,856,921   18,625,575  23,692,064 16,602,034
                 --------     -------      -------   -------



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


                                      1997         1996

ASSETS
CURRENT
 Cash and short-term deposits        $ 5,077     $ 8,568
 Funds held in escrow                      0         751
 Short-term investments                    0          78
 Accounts receivable                  10,254       9,086
 Inventories                           6,497       6,711
 Prepaid expenses and deposits         1,953       2,113
 Corporate income taxes refundable       174       1,550
                                     -------     -------
                                      23,955      28,857

OTHER ASSETS                           1,540       3,011

LONG-TERM INVESTMENTS                  4,901       4,344

DISTRIBUTION RIGHTS                    5,127       4,674

LONG-TERM RECEIVABLES                  2,368       2,886

PROPERTY, PLANT AND EQUIPMENT          9,835       9,177
                                     -------------------
                                     $47,726     $52,949
                                     -------------------

LIABILITIES
CURRENT
 Accounts payable and accrued
  liabilities                        $ 4,569     $ 4,240
 Current portion of long-term debt     1,356       1,909
                                     -------     -------
                                       5,925       6,149

DEFERRED LEASE INDUCEMENT                156         209
LONG TERM DEBT                             0       2,215
                                     -------     -------
                                       6,081       8,573
                                     -------     -------

SHAREHOLDERS' EQUITY
SHARE CAPITAL
 Issued and outstanding - 23,950,399
  common shares without par value
   (1996 - 20,960,033)                51,733      46,469
SPECIAL WARRANTS                           0       4,665

RETAINED EARNINGS (DEFICIT)          (10,088)     (6,758)
                                     --------     -------
                                      41,645      44,376
                                     --------     -------
                                     $47,726     $52,949
                                     --------     -------

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The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CONTACT: Clearly Canadian Beverage Corporation

Kelly Lendvoy, 800/663-5658 (USA)

1-800-663-0227 (Canada)

e-mail: [e-mail]