Icelandic Glacial announces Exclusive Canadian distribution agreement with Leading Brands Inc.

February 19, 2007

Comprehensive Distribution Network Allows Icelandic Glacial to Meet Skyrocketing Demand for One of the World’s Purest Super-Premium Waters

Icelandic Water Holdings, ehf, producers of Icelandic Glacial super-premium spring water, today announced an exclusive Canadian distribution agreement with Leading Brands, Inc. (Nasdaq: LBIX), North America’s only fully integrated premium beverage company. The super-premium bottled water brand joins Leading Brands’ already impressive proprietary brand portfolio, including TrueBlue® Blueberry Juice, Caesar’s® Cocktail, TREK® Natural Sports Drinks, NITRO Energy Drinks and Infinite Health Water.

The deal comes just one year after Icelandic Glacial’s successful Canadian launch, leading to strong brand presence in a number of prominent retailers, including Shoppers Drug Mart, Sobey’s, Whole Foods Markets, Wal-Mart, Ultramar and Boni-Soir. Now, with this exclusive distribution agreement, consumers seeking the highest-quality premium beverages will be able to find Icelandic Glacial in all corners of the country.

IG bottle and case

“This relationship with Leading Brands is a significant step in advancing Icelandic Glacial’s North American growth strategy,” says Icelandic Glacial Sales Director Kristjan Olafsson. “Icelandic Glacial has received strong acceptance in the Canadian market, and we are very excited about the brand expansion that this relationship brings, giving Canadians easy access to Icelandic Glacial. Leading Brands’ professionalism and market expertise is unparalleled.

Their knowledge of what consumers want, coupled with their network to deliver it to them efficiently, fills us with great confidence for success.”

Leading Brands’ countrywide Integrated Distribution System is the broadest and most pervasive beverage distribution platform in Canada. They are partnering with Icelandic Glacial at a time when the demand for super-premium beverages continues to climb in the Canadian market.

Leading Brands Chairman and CEO Ralph McRae said: “This deal makes Leading Brands the undisputed leader in the fast-growing super-premium water category. Icelandic Glacial’s unique and pristine water source and eye-catching packaging are just what the Canadian consumer is looking for. We look forward to a long and mutually beneficial relationship with Kristjan and his team.”

Leading Brands will distribute Icelandic Glacial’s full product range, including 750 ml, 500 ml and 1 liter bottles and 500 ml six-packs, with new sizes and packages coming later this year and next year.