Leading Brands, Inc. Announces Q3 and YTD Results

Leading Brands, Inc. Announces Q3 and YTD Results

              Q3 Net Loss $0.13 per share ($0.11 fully diluted)
             YTD Net Income $0.21 per share ($0.19 fully diluted)

VANCOUVER, British Columbia, Jan. 4, 2013 (GLOBE NEWSWIRE) -- Leading Brands,
Inc. (Nasdaq:LBIX), North America's only fully integrated healthy branded
beverage company, announces results for its third quarter of fiscal 2012,
which ended November 30, 2012. All financial amounts are denominated in
Canadian dollars, with all financial figures rounded to the nearest $000.

Gross revenue for Q3 2012 was $4,081,000, versus $4,474,000 in the same period
of last year. The decrease was due to a reduction in demand for the Company's
co-packing services in the quarter, a delay in delivery of product for a
seasonal promotion and a lag in listings of the Company's juice brands due to
a change in packaging format.

Q3 2012 net loss was $(376,000) or $(0.13) per share [$(0.11) fully diluted]
versus net income of $245,000 or $0.07 per share [$0.07 fully diluted] in the
same quarter of fiscal 2011. YTD net income was $627,000 or $0.21 per share
[$0.19 fully diluted], versus a net income of $1,339,000 or $0.39 per share
[$0.37 fully diluted] in the first three quarters of last year.

Q3 2012 net loss before stock based compensation (SBC) was $(344,000) or
$(0.12) per share [$(0.10) fully diluted] versus $272,000 or $0.08 per share
[$0.08 fully diluted] in the same quarter last year. YTD net income before SBC
$750,000 or $0.25 per share [$0.22 fully diluted] as compared to $1,599,000 or
$0.40 [$0.38 fully diluted] a year ago.

Q3 2012 EBITDAS (Earnings Before Interest, Depreciation, Amortization and SBC)
was $(261,000) or $(0.09) per share [$(0.08) fully diluted], versus a positive
$556,000 or $0.17 per share [$0.16 fully diluted] during the same period last
year. YTD EBITDAS was $1,567,000 or $0.51 per share [$0.47 fully diluted]
versus $2,789,000 or $0.80 per share [$0.76 fully diluted] in the first three
quarters of fiscal 2011.

The Company is extremely disappointed in this quarterly loss, following on 14
consecutive quarters of positive EBITDAS generating $11,000,000. Approximately
$150,000 of this loss was occasioned by extraordinary items. Additionally, the
Company could have – as in past years – reacted more quickly and decisively to
its seasonal slowdown to mitigate the impact on profitability. Changes are in
the process of being implemented to avoid a recurrence.

Non-GAAP Net Income before SBC is determined as follows:
                     Q3         Q3        YTD       YTD
                      2012       2011      2012      2011
Net Income (loss)     $(376,000) $245,000 $628,000  $1,339,000
Add back SBC          32,000     27,000    122,000   260,000
Net income before SBC $(344,000) $272,000 $750,000 $1,599,000
                                                 

Non-GAAP Net Income per share before SBC is determined as follows:
                                Q3        Q3      YTD    YTD
                                 2012      2011    2012    2011
Net Income (loss) per share      $(0.13)  $0.07  $0.21  $0.39
Add back SBC per share           0.01     0.01   0.04   0.07
Net Income per share before SBC  $(0.12)  $0.08  $0.25  $0.46
                                                       

Pro-forma results for EBITDAS, as defined below, are determined as follows:
                                 Q3        Q3      YTD        YTD
                                  2012       2011     2012      2011
Net Income (loss)                 $(376,000) $245,000 $628,000   $1,339,000
                                                             
Add back:                                                     
Interest                          4,000     14,000  11,000    64,000
Depreciation and Amortization     177,000   170,000 499,000   506,000
Non-cash stock based compensation 32,000     27,000   122,000    260,000
Non-cash income tax expense       (98,000)  100,000 307,000   620,000
                                                             
Total Add Backs                   115,000    311,000  939,000    1,450,000
                                                             
EBITDAS                           $261,000   $556,000 $1,567,000 $2,789,000
                                                             

EBITDAS per share reconciles to earnings per share as follows:
                                 Q3       Q3     YTD    YTD
                                  2012     2011   2012   2011
Net Income (loss) per share       $(0.13) $0.07 $0.21 $0.39
                                                     
Add back:                                             
Interest                          0.00     0.01   0.00   0.02
Depreciation and Amortization     0.06     0.05   0.16   0.14
Non-cash stock based compensation 0.01     0.01   0.04   0.07
Non-cash income tax expense       (0.03)   0.03   0.10   0.18
                                                     
EBITDAS per share                 $(0.09) $0.17 $0.51 $0.80
                                                     

Gross profit margin for the quarter was 26.2%, down from 36.9% in the same
quarter last year. This quarter's margin was directly impacted by
extraordinary items, listing fees and poor promotional performance. In the
past several years the Company has maintained gross profit margin in excess of
35%, as presently calculated.

Discounts, rebates and slotting fees were $315,000 in Q3 2012, up from
$240,000 in Q3 of the prior year. SG&A expenses were $1,261,000 in Q3 of
fiscal 2012, versus $1,070,000 in the comparative period of the previous year.
The principal differences were costs relating to the test marketing of a new
brand.

As at the end of Q3 2012 the Company had cash and available credit totaling
approximately $997,000.

During Q3 2012 the Company repurchased an additional 34,785 shares of its
common stock at an average price of $4.13 US per share, pursuant to its share
repurchase program. As at November 30, 2012 the Company had outstanding
2,927,563 common shares. The Company believes that its common share price
remains undervalued and will continue with its share repurchase program at
appropriate times.

About Leading Brands, Inc.

Leading Brands, Inc. (Nasdaq:LBIX) is North America's only fully integrated
healthy beverage company. Leading Brands creates, designs, bottles,
distributes and markets its own proprietary premium beverage brands such as
TrueBlue^® Blueberry Juice, LiteBlue^® Blueberry Juice, PureBlue^®, UnWine^®,
PureRed^®, and PureBlack^® SuperJuices via its unique Integrated Distribution
System (IDS)™ which involves the Company finding the best and most
cost-effective route to market. The Company strives to use the best natural
ingredients hence its mantra: Better Ingredients – Better Brands.

The Leading Brands, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=2681

Non-GAAP Measures

Any non-GAAP financial measures referenced in this release do not have any
standardized meaning prescribed by GAAP and are therefore unlikely to be
comparable to similar measures presented by other issuers.

EBITDAS is a non-GAAP financial measure. EBITDAS is defined as net income
(loss) before income taxes, interest expense, depreciation and amortization
and stock-based compensation. EBITDAS should not be construed as a substitute
for net income (as determined in accordance with GAAP) for the purpose of
analyzing operating performance, as EBITDAS is not defined by GAAP. However,
the Company regards EBITDAS as a complement to net income and income before
taxes.

Forward Looking Statements

Certain information contained in this press release includes forward-looking
statements. Words such as "believe," "expect," "will," or comparable terms,
are intended to identify forward-looking statements concerning the Company's
expectations, beliefs, intentions, plans, objectives, future events or
performance and other developments. All forward-looking statements included in
this press release are based on information available to the Company on the
date hereof. Such statements speak only as of the date hereof. Important
factors that could cause actual results to differ materially from the
Company's estimations and projections are disclosed in the Company's
securities filings and include, but are not limited to, the following: general
economic conditions, weather conditions, changing beverage consumption trends,
pricing, availability of raw materials, economic uncertainties (including
currency exchange rates), government regulation, managing and maintaining
growth, the effect of adverse publicity, litigation, competition and other
risk factors described from time to time in securities reports filed by
Leading Brands, Inc. For all such forward-looking statements, we claim the
safe harbor for forward looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.

Better Ingredients | Better Brands™

©2013 Leading Brands, Inc.

                This news release is available at www.LBIX.com

                               (table follows)

                                                              
LEADING BRANDS, INC.                                           
CONSOLIDATED STATEMENT OF                                      
INCOME (LOSS)
(UNAUDITED)                                                    
(EXPRESSED IN CANADIAN                                         
DOLLARS)
                                                              
                           Three        Three months Nine months  Nine months
                           months       ended        ended        ended
                          ended        November 30, November 30, November 30,
                           November     2011         2012         2011
                           30, 2012
                                                              
Gross revenue              $4,080,852 $4,474,037   $14,715,968  $15,548,894
Less: Discounts, rebates   (315,365)    (239,533)    (868,282)    (837,728)
and slotting fees
Net revenue                3,765,487    4,234,504    13,847,686   14,711,166
                                                              
Expenses (Income)                                              
Cost of sales              2,778,952    2,670,187    8,714,255    8,809,493
Selling, general and       1,261,799    1,070,709    3,610,394    3,359,611
administration expenses
Depreciation of property,  176,760      170,002      498,501      505,645
plant and equipment
Interest expense           4,219        17,282       14,371       73,577
Loss on disposal of assets 34,466       -            52,606       9,622
Interest income            -            (2,852)      (2,907)      (9,578)
Change in fair value of    (20,158)     (24,607)     21,154       19,258
derivative liability
Foreign exchange gain      3,785        (11,045)    4,336        (16,217)
                          4,239,823    3,889,676    12,912,710   12,751,411
                                                              
Income (loss) before       (474,336)    344,828      934,976      1,959,755
income taxes
                                                              
Income tax expense         (98,043)     99,702       307,313      620,579
(recovery)
                                                              
Net income (loss) and
other comprehensive income $(376,293)   $245,126     $627,663     $1,339,176
(loss)
                                                              
Basic income (loss) per    $(0.13)      $0.07       $0.21        $0.39
share
                                                              
Weighted average number of 2,958,262    3,283,304    3,048,719    3,466,462
shares outstanding – basic
                                                              
Diluted income (loss) per  $(0.11)      $0.07       $0.19        $0.37
share
                                                              
Weighted average number of
shares outstanding –       3,291,429    3,467,719    3,362,244    3,650,877
diluted

CONTACT: Leading Brands, Inc.
         Tel: (604) 685-5200
         Email: info@LBIX.com

Leading Brands, Inc. Company Logo