Exclusive summary

www.leadingbrandsinc.com/media/lbix-2001.pdf

Part A. IntroductionChief executive officer: Ralph D. McRae Location: Leading Brands Inc.

160-7400 River Road

Richmond, BC Canada V6X 1X6

Latest fiscal year: Feb. 28, 2002

Part A. Introduction cont. Leading Brands Inc. principal operations are

comprised of an integrated bottling and distributing system for beverages, water and snack foods.

As shown on the bottom left. The Geographic area mainly consists of The United States of America & Southern parts of Canada.

Part A. Audit Report Independent auditors: /s/ BDO Dunwoody LLP In the audit Report the auditors found that the

consolidated financial statements were present fairly, in all respects. The financial position of the company generally accepts accounting principals.

Part A. Stock Market Information Most recent price of the company’s stock: Dec.

31, 2003 $2.00 12 month range: $1.75 to Dec. 31, 2002

$2.00 to Dec. 31, 2003 Dividends per share: 4414 Date of Information: Feb. 28, 2002 & 2001 The company stock seems to be steady

although the price of stock does not seem to increase much.

Part B. Industry Situation and Company Plans On www.globeinvertor.com I found that the Leading Brands plans

to expand their selection. They believe that the more beverages on the market the greater their income.

www.bevnet.com writes on Leading Brands announcement of their new release of 2 new drinks.

http://www.freeedgar.com/EdgarConstruct/Data/1062993/03-611/exhibit99b.htm wrote For the financial year ended February 28, 2003, compensation for executive officers of the Company consisted of a fixed base salary and long term compensation in the form of stock options. Bonuses may be allocated by the Compensation Committee. Salary levels will be reviewed periodically and adjustments may be made, if warranted, after an evaluation of executive and company performance, salary trends in the Company’s business sector, and any increase in responsibilities assumed by the executive.

Part C. Income Statement

The income statement seems to be in multistep form.the net income is increasing drastically with each year. Although the sales have gone down. I believe this is a result of advertising.

Part C. Balance SheetAssets

Part C. Balance SheetLiabilities

Part C. Balance SheetIncreases or DecreasesBy looking at the balance sheets shown

on the two previous slides, I found that both the assets and liabilities tended to decrease from 2001 to 2002.

Some of the major changes were: Capital assets- ($2,335,138)

A/P – ($3,201,398)

Long term investment- $986,090

Bank dept.- ($2,951,198)

Part C. Statement of Cash Flows

The cash flow from operations are less than the net income form the years before.

The company is growing through investing activities.

The company’s primary source of financing is long term loans

Overall the cash had increased over the past two years.

Part D. Accounting Policies

Part D. Accounting PoliciesTopics of notes to the Financial statements:

Acquisitions and DispositionsInventoryCapital AssetsTrademarks and RightsGoodwillDeferred CostsLong term Investment

and AdvancesBank IndebtednessLong term DebtConvertible Preferred Shares Share CapitalCommitments

Contingencies

Income taxes

Changes in Non-cash Operating Working Items

Related Party Transactions

Fair Value of Financial Instruments

Credit Risk and Interest Rate Risk

Segmented Information

Differences between Canadian and US Generally Accepted

Accouting Principals

Part E. Financial Analysis Liquidity Ratios

Working Capital: -208,400 -481132 Current Raito: .9649 .9607 Receivable Turnover: 10.6 13.17 Average Days

Sales Uncollected: 33.96 27.33 Inventory turnover: 11.85 14.79 Avg. days inventory

on hand: 30.38 24.34

Part E. Financial Analysis Profitability Ratios

Profit margin: .0325 .0237Asset turnover:1.56 1.93Return on assets: .05 .046Return on equity: .068 .062

Part E. Financial Analysis Solvency Ratio

Debt to equity: 1.686 2.4

Part E. Financial Analysis Market Strength Ratios

Price/ Earning

per share: 4.12 times6.2 times

Dividend yield: .097 .0645