May 25, 2007/Business Wires/VANCOUVER, British Columbia -- Clearly Canadian announced it has completed the acquisition of My Organic Baby Inc., Canada's first full nation-wide line of organic baby food.

"My Organic Baby is an incredible opportunity and provides yet another vehicle for top-line revenue growth for Clearly Canadian," stated Brent Lokash, president of Clearly Canadian. "Consumer spending on baby products has shown double-digit growth during the last five years, and more consumers are making the change to organic, especially where their children are concerned. Nothing is more important for a baby's positive development than healthy and nutritious food. With national retail distribution and its wide product offerings, My Organic Baby is in a great position to capture the family's desire for organic products for their children."

My Organic Baby's founders, David Reingold and Orlee Muroff will be joining the Clearly Canadian team and will play a critical role in expanding My Organic Baby. This will include the introduction of an organic product line for toddlers under the name My Organic Toddler and overseeing the roll out of all My Organic Baby's products into the massive U.S. market place.

Lokash continued, "With its current listings in Canada's leading national retailers of baby food and organic products, My Organic Baby is already establishing strong brand awareness, which is a cornerstone of our company."

In connection with the acquisition of My Organic Baby, the company has paid $400,000 CDN upon closing of the transaction; 615,000 restricted common shares of the Company, provided, that if a gain of $600,000 CDN is not realized from a sale of these shares within two years months, the Company will pay any shortfall; and 3,750,000 warrants to purchase the company's common shares at a purchase price of US $4.00 per share, provided that if a gain of $3,750,000 CDN is not realized from a sale of the shares attached to the warrants within one year, the Company will pay any shortfall.

Additionally Clearly Canadian announced that James Dines has stepped down as chairman of the Advisory Committee. Dines stated, "I believe the course has been set, and the company fully understands and embraces the exponential benefits available through the continuous branding of Clearly Canadian as a recognizable and trusted name in the organic and natural sector. That was my original goal and with that accomplished I will leave it to this very capable management team to continue to execute the vision we have so diligently laid out for the future of Clearly Canadian."

From the June 4, 2007, Prepared Foods e-Flash