Leading Brands, Inc. Announces Year End and Q4 Financial Results

Leading Brands, Inc. Announces Year End and Q4 Financial Results

   Fiscal 2012 Net Income $591,000 or $0.20 Per Share [$0.17 fully diluted]

          Fiscal 2012 EBITDAS $0.58 Per Share [$0.53 fully diluted]

VANCOUVER, British Columbia, May 17, 2013 (GLOBE NEWSWIRE) -- Leading Brands,
Inc. (Nasdaq:LBIX),North America's only fully integrated healthy branded
beverage company, announces results for its fourth quarter and Fiscal 2012
year end, which ended February 28, 2013. All financial amounts are denominated
in Canadian dollars, with all financial figures rounded to the nearest $000
and, have been prepared in accordance with United States generally accepted
accounting principles (U.S. GAAP).

Net income for the 2012 Fiscal Year was $591,000, or $0.20 per share [$0.17
fully diluted] versus a net income of 1,551,000 or $0.46 the prior year. Gross
Revenue for the year dropped 5.6% to $18,366,000 from $19,457,000 as the
company experienced lower branded beverage sales.

Gross revenue for Q4 2012 was $3,650,000, versus $3,908,000 in the same period
of last year, a decrease of 6.6%. Q4 2012 net loss was ($36,000) or ($0.01)
per share [($0.01) fully diluted] versus net income of $212,000 or $0.06 per
share [$0.06 fully diluted] in the same quarter of fiscal 2011. EBITDAS in Q4
increased to $180,000 or $0.06 per share [$0.06 fully diluted] from $51,000 or
$0.02 per share [$0.02 fully diluted] in the prior year.

2012 net income before stock based compensation (SBC) decreased to $743,000 or
$0.25 per share [$0.22 fully diluted] versus $1,966,000 or $0.58 per share
[$0.55 fully diluted] in the same quarter last year. 2012 EBITDAS (Earnings
Before Interest, Depreciation, Amortization and SBC) was $1,746,000 or $0.58
per share [$0.53 fully diluted], versus $2,843,000 or $0.84 per share [$0.80
fully diluted] last year.

Non-GAAP Net Income before SBC is determined as follows:
                                 FY         FY         Q4        Q4
                                 2012       2011       2012      2011
Net Income (loss)                 $591,000   $1,551,000 ($36,000) $212,000
Add back SBC                      152,000    415,000    30,000    155,000
Net income before SBC             $743,000   $1,966,000 ($6,000)  $367,000
                                                              
Non-GAAP Net Income per share before SBC is determined as follows:
                                 FY         FY         Q4       Q4
                                 2012       2011       2012      2011
Net Income (loss) per share       $0.20      $0.46      ($0.01)   $0.07
Add back SBC per share           0.05       0.12       0.01      0.04
Net Income per share before SBC   $0.25      $0.58      $0.00     $0.11
                                                              
Pro-forma results for EBITDAS, as defined below, are determined as follows:
                                 FY        FY        Q4        Q4
                                 2012       2011       2012      2011
Net Income (loss)                 $591,000   $1,551,000 ($36,000) $212,000
Add back:                                                      
Interest                          15,000     108,000    4,000     40,000
Depreciation and Amortization     681,000    676,000    183,000   171,000
Non-cash stock based compensation 152,000    415,000    30,000    155,000
Non-cash income tax expense       307,000    93,000     (1,000)   (527,000)
Total Add Backs                   1,155,000  1,292,000  216,000   (161,000)
EBITDAS                           $1,746,000 $2,843,000 $180,000  $51,000
                                                              
EBITDAS per share reconciles to earnings per share as follows:
                                 FY         FY         Q4        Q4
                                 2012       2011       2012      2011
Net Income (loss) per share       $0.20      $0.46      ($0.01)   $0.07
Add back:                                                      
Interest                          0.00       0.03       0.00      0.01
Depreciation and Amortization     0.23       0.20       0.06      0.05
Non-cash stock based compensation 0.05       0.12       0.01      0.05
Non-cash income tax expense       0.10       0.03       0.00      (0.16)
EBITDAS per share                 $0.58      $0.84      $0.06     $0.02

Gross profit margin for the fiscal year was 37.2%, down slightly from 38.7% in
the same period last year.

Discounts, rebates and slotting fees were $1,126,000 in 2012, up from
$1,052,000 the prior year.SG&A expenses were $4,740,000 in 2012, versus
$4,656,000 in the previous year.

The Company paid $1,544,000 to repurchase 326,187 of its common shares at an
average price of $4.73 per share during fiscal 2012.Cash on hand net of
non-trade obligations as at February 28, 2013 was ($165,000).

As at February 28, 2013 the Company had outstanding 2,930,481 common
shares.The Company believes that its common share price remains undervalued
and will continue with the repurchase of its shares 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
Neurogenesis Happy Water™, TrueBlue^® Blueberry Juice, LiteBlue^® Blueberry
Juice, TrueBlack™ Blackberry Juice, PureBlue^®, UnWine^®, PureRed^® and
PureBlack^® 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.

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
(EXPRESSED IN CANADIAN DOLLARS)
                                                    February 28, February 29,
                                                    2013         2012

                                                                
Gross revenue                                        $18,365,871  $19,456,504
Less: Discounts, rebates and slotting fees           (1,125,529)  (1,052,453)
Net revenue                                          17,240,342   18,404,051
                                                                
Expenses (Income)                                                
Cost of sales                                       10,832,783   11,287,079
Selling, general & administration expenses           4,740,375    4,656,298
Depreciation                                        681,045      676,464
Interest expense, net                                18,165       115,627
Loss on disposal of assets                           90,585       11,013
Change in fair value of derivative liability         (18,252)     17,160
Foreign exchange loss (gain)                         593          4,666
Interest income                                      (2,908)      (8,216)
Total Expenses                                       16,342,386   16,760,091
                                                                
Income before taxes                                  897,956      1,643,961
Income tax expense                                  306,652      93,103
                                                                
Net income                                           $591,304     $1,550,858
                                                                
Earnings per share                                               
Basic income per share                               $0.20        $0.46
Weighted average number of common shares outstanding 3,012,647    3,368,751
- basic
                                                                
Diluted income per share                             $0.17        $0.44
Weighted average number of common shares outstanding 3,314,762    3,541,859
- diluted

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

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