Replies to post #23 on Clearly Canadian Beverage (fka CCBEF)

[RonnieD]

Clearly Canadian Significantly Improves Financial Position
CLEARLY CANADIAN BEVERAGE CORPORATION (OTCBB: CCBEF) is pleased to announce that on the heels of its recent financings and settlement of outstanding litigation, it is now, aside from regular trade payables, effectively debt free and has increased its current cash position to more than US $5.3 million.

Brent Lokash, President of Clearly Canadian stated, "We now have a very strong financial foundation which could accelerate our efforts towards broadening distribution, increasing availability of our product lines, exploring all profitable alternatives related to our brand name and implementing our stated strategic initiatives."

The litigation which the Company has settled relates to the majority portion of a claim surrounding its subsidiary, Blue Mountain Springs Ltd (Blue Mountain). This litigation was commenced in 1997 and involved, in part, a claim against the Company and Blue Mountain to repay an outstanding CDN $1.75 million debt owed by the Company to the former owners of Blue Mountain. The Company had withheld payment of this debt in order to set off a claim against the Company made in connection with the Company's purchase of Blue Mountain. At the time of settlement, the former owners of Blue Mountain were claiming the Company owed them approximately CDN $3.0 million, comprised mostly of the principal and interest on the outstanding debt.

This settlement allows the Company to retire the CDN $1.75 million debt currently on its balance sheet. In consideration, the Company has issued 624,314 common shares and warrants to purchase 100,000 common shares at $2.00 per share. The right to sell these common shares will vest in six traunches over a three year period.

Continued Lokash, "This settlement represents a great accomplishment for the Company. For almost 10 years, valuable monetary and human resources of the Company have been diverted to deal with this litigation. This settlement allows the Company to extinguish a significant debt for less than is being claimed against the Company and allows the new management team to focus on the positive aspects of developing new business and products."

About Clearly Canadian

Based in Vancouver, B.C., Clearly Canadian Beverage Corporation markets premium alternative beverages and products, including Clearly Canadian(R) sparkling flavoured water and Clearly Canadian O+2(R) oxygen enhanced water beverage which are distributed in the United States, Canada and various other countries. Since its inception, the Clearly Canadian brand has sold over 90 million cases equating to over 2 billion bottles worldwide. Additional information about Clearly Canadian may be obtained at www.clearly.ca.

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