Clearly Canadian update on litigation with Blue Mountain Springs Ltd.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 14, 1995--Further to our News Release of May 24, 1995, Clearly Canadian Beverage Corporation (NASDAQ:CLCDF) (VSE:CLV) wishes to announce recent developments in connection with its litigation with Blue Mountain.

As referred in our previous News Release, the Ontario Trial Court awarded judgment in favour of Blue Mountain in the amount of $Cdn 5,900,000, before interest or costs, based on breach of contract. Clearly Canadian disagreed with the decision rendered by the Trial Court and instructed counsel to file an appeal. Accordingly, a Notice of Appeal was filed with the Ontario Court of Appeal Registry on June 16, 1995.

Notwithstanding the filing of the Notice of Appeal, the Trial Court retained the jurisdiction to decide the issues of interest and costs on the basis of its award of damages. As a consequence, Clearly Canadian and Blue Mountain made submissions to the Trial Court in connection with the amount of pre-judgment interest and court costs that Blue Mountain would be entitled to receive if the Trial Judge's award is upheld on appeal.

In Blue Mountain's submissions it claimed the sum of $Cdn 4,672,800 for pre-judgment interest and the sum of $Cdn 45,000 for costs and disbursements. Clearly Canadian, on the other hand, submitted that if the Trial Judge's award is upheld on appeal, then Blue Mountain would be entitled to $Cdn 2,322,042 for pre-judgment interest and to $Cdn 12,000, plus assessable disbursements, for court costs.

Ultimately, the Trial Judge held in favour of Clearly Canadian, set pre-judgment interest at $Cdn 2,322,042 and fixed court costs at $Cdn 12,000, plus assessable disbursements.

Under Ontario Court Rules, the execution of a money judgment, such as obtained by Blue Mountain, is automatically stayed once a Notice of Appeal has been filed. As a result, Blue Mountain is not entitled to enforce any judgment against Clearly Canadian while the matter is under appeal.

As previously announced, Clearly Canadian believes that the Trial Court failed to take into account a number of significant issues which Clearly Canadian views as worthy of appeal.

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Note: CLEARLY CANADIAN BEVERAGE CORPORATION is the registered holder of the trademark "Clearly Canadian (R)".

CLEARLY CANADIAN BEVERAGE CORPORATION, and its wholly owned International subsidiary, Clearly Canadian Beverage (International) Corporation, produce, distribute and market CLEARLY CANADIAN (R), CLEARLY TEA (TM), and CLEARLY 2 (TM), a line of flavoured and unflavoured bottled sparkling water beverages.

Through distribution and/or licensing agreements, CLEARLY CANADIAN (R) is sold throughout the United States, Canada, Japan, and the United Kingdom, the Republic of Ireland, the Caribbean and Mexico.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release was prepared by management who accept full responsibility for its content.

CONTACT: D. Bruce Horton

Chief Financial Officer & Director, [phone]

[phone] (Fax)

1-800-663-5658 (U.S.A.)

1-800-663-0227 (Canada)