LOS ANGELES, CA–(Marketwire – December 29, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that the Corporation has completed its previously announced rights offering of Series B Convertible Preferred Stock pursuant to its basic and applicable oversubscription privileges. At closing, the Company sold 120,820 shares of Reed’s Series B Convertible Preferred Stock through the exercise of rights at a subscription price of $10 per share, for an aggregate purchase price of $1,208,200. The net proceeds of the Rights Offering are to be used for general working capital. Additional investment in Reed’s Series B Convertible Preferred Stock will be available through Source Capital Group, Inc. (“Source”) for the next 30 trading days.

The offering, as filed with the Securities and Exchange Commission, was for Reed’s to raise up to $2,250,000. During the subscription period the company raised $1,208,200 and issued 120,820 shares of Series B Convertible Preferred Stock. This leaves an additional $1,041,800 or 104,180 shares of Series B Convertible Preferred Stock available to be sold through Source under a standby arrangement. These shares will be available for purchase through Source until the sooner of (i) Feb. 5, 2010 or (ii) the date the Offering has been fully subscribed. Investors interested in participating in this offering may contact the Investment Banking Department at Source Capital Group, Inc. at 203-341-3500 (extension 224).

“We are pleased that Reed’s has been able to strengthen its equity capital base through the support of our shareholders and the investors who subscribed for shares through the rights offering,” stated Jim Linesch, Reed’s CFO. “The Company intends to apply to the OTC Bulletin Board for quotation of the Series B Convertible Preferred Stock to facilitate the trading of the shares by our existing investors.” He added, “Additionally it will open up the preferred shares for broader ownership. Money managers and other institutional investors, with restrictions that limit their investment to only publicly listed and traded instruments, will now be able to buy and own these preferred shares.” The Company cannot assure that the Series B Preferred will meet the requirements for quotation or that there will be an active trading market for our Series B Preferred.

Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., stated that “rights offerings are not that common in the US, though they are more standard in Europe. They fit our corporate culture since they empower and reward the shareholders who have supported us so far. Many of our shareholders are loyal customers who have responded to our direct marketing pieces on our products such as the neck tags we hung on our bottles for our IPO. We sell our products in a more grassroot way so why not our shares?” He added, “For too long we have seen Wall Street insiders and institutions as the primary beneficiaries of participation in IPOs and Private Placements. We at Reed’s have always felt that it is only fair to give existing shareholders a shot at these deals.” He ended stating that, “Reed’s is now well positioned to deliver solid growth and performance. We have the top-selling sodas in natural food stores nationwide, years of experience under our belt and a strong plan in place for 2010 under which we are already experiencing solid growth.”

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Christopher Reed, Founder Chairman and CEO of Reed’s, Inc., stated, “We are thrilled to be working with Marsham International.” He added, “They are the premier natural food brokerage firm in eastern Canada. The natural food industry in Canada is very active. Many top US natural food brands are major players in Canada. We have a significant opportunity in Canada.” Paul Marsham, CEO and Founder of Marsham International, stated, “We are excited to be representing Reed’s, Inc. brands in eastern Canada. I have followed these brands for years and have seen them grow into a real natural beverage powerhouse. I am sure we can add considerable value to these brands through our natural food network.”

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LOS ANGELES, CA–(Marketwire – December 9, 2009) – Reed’s, Inc. (NASDAQ: REED) (NASDAQ: REEDR), maker of the top-selling sodas in natural food stores nationwide, announced today that it has received its first order from the largest independently owned retail distributor of consumer goods, food products, beverages and pharmaceutical lines in all of Southern Africa. The initial order covered all of Reed’s branded products, including Reed’s Ginger Brew, Virgil’s Natural Soda and China Cola. In addition, Reed’s Inc. received its second order from a new Israeli importer which distributes primarily natural products to convenience stores throughout Israel.

“We are encouraged by these orders,” stated Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “That the South African order was of significant quantity and includes all three of our product lines are just further proof of how much our international sales department has stepped up its efforts. Reed’s and Virgil’s are now available in at least eleven countries and we’re expecting to increase that number in the coming months.”

By distributing products predominantly made in the USA, the South African Importer has become a formidable force in that country’s retail trade sector. In fact, the importer currently distributes high volumes of over 40,000 items to its local markets, and that number is only expected to grow as its offerings become more diverse. Reeds, Inc. is being regarded by many as a key component of that company’s expansion.

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LOS ANGELES, CA–(Marketwire – December 7, 2009) – Reed’s, Inc. (NASDAQ: REED) (NASDAQ: REEDR), maker of the top-selling sodas in natural food stores nationwide, announced today that it will begin producing new products designed to compete with existing over the counter medicines.

“For years we have been hearing from our customers on how they use our ginger brews to treat health conditions. We’ve spoken to customers using our drinks for motion sickness, food poisoning, migraines, morning sickness, irritable bowel syndrome and even autism,” commented Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc.

“I started this business because I believed in the healing power of ginger. I studied Ayurveda (East Indian herbology) and Chinese medicine, and using the principles of these herbal pharmacopeias, I developed my Reed’s Ginger Brews. Responding to the growing trend toward more natural products, drug stores have started to include natural drug alternatives alongside over-the-counter drugs. In fact, we have been encouraged to develop these products for a certain drug store chain. Therefore, we have created a new line of products based on the Reed’s Ginger brand. The new brand includes variations on some of our most popular ginger products and will have a new trademark, R(x)eed’s where the r and x are joined like in drug store signs of old days.” Mr. Reed added, “Since we started making our Reed’s Ginger Brews, considerable research has come out showing the health benefits of ginger, including its ability to kill bad bacteria in the digestive track, treat post-chemo nausea and combat cancer cells. We look forward to the ongoing, research around ginger and believe ginger should be a regular component of everyone’s diet. We are the only company in the world that brews fresh ginger to make our ginger ales, which is the main reason our drinks have worked so well for our customers.”

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LOS ANGELES, CA–(Marketwire – December 3, 2009) – Reed’s, Inc. (NASDAQ: REED) (NASDAQ: REEDR), announced today that the Company has increased the conversion rate of its Series B Convertible Preferred Stock (“Series B Preferred”) to seven (7) shares of common stock per share of Series B Preferred. The conversion price is now $1.43 per share. Investors may purchase Series B Preferred shares for $10.00 per share by exercising four (4) transferable rights (NASDAQ: REEDR).

Each share of Series B Preferred carries a five percent (5%) annual dividend for a term of three (3) years. The dividends are currently worth about $0.14 per common share, as valued by using the net present value formula using the Company’s cost of equity as the discount rate.

There are two reasons why the convertible preferred is worth more than the underlying shares into which they can be converted. First, preferred shares pay dividends while common stock usually doesn’t. As a result, the preferred investor receives all the upside potential of the common stock and more cash while he or she waits. Second, if something goes wrong, the preferred shares are more protected. Since the preferred shares are senior to common, the preferred shareholders receive all their investment back before the common shareholders are paid anything.

Important Dates:
Subscription Period From November 16, 2009 to
December 21, 2009(2)
Last Day Rights May Be Traded December 16, 2009(2)
Expiration Date December 21, 2009(2)

(1) Assumes three day settlement.

(2) Unless the offering is extended.

The Company has distributed to each such holder one transferable right for every share of common stock owned on the record date of November 13, 2009. During the subscription period, the transferable rights are being traded on the NASDAQ Exchange (NASDAQ: REEDR). Each four (4) rights will entitle the holder to purchase one share of Series B Preferred at the subscription price of $10.00 per share. Each share of Series B Preferred carries a five percent (5%) annual dividend for a term of three (3) years, will have an initial stated value of $10.00 per share, and may be convertible into shares of common stock at a conversion ratio of seven (7) shares of common stock for each share of Series B Preferred held at the time of conversion, representing an initial conversion price of $1.43 per share, which is subject to adjustment. Rights holders who fully exercise their rights will be entitled to subscribe, subject to certain limitations and subject to allotment, for additional shares that remain unsubscribed as a result of any unexercised rights in an amount equal to up to 400% of the shares of Series B Preferred for which such subscriber was otherwise entitled to subscribe. Shares of Series B Preferred that remain unsubscribed at the expiration of the rights offering will be reoffered to the public at $10.00 per share. Consummation of the rights offering is subject to customary closing conditions.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The securities may only be offered by means of a prospectus, additional copies of which may be obtained, when available, by contacting the information agent, MacKenzie Partners, Inc., at 105 Madison Avenue, New York, NY 10016, toll-free: (800) 322-2885, collect: (212) 929-5500 or via email at reedrights@mackenziepartners.com.

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Held at the Loews Santa Monica Beach Hotel in Santa Monica, CA on December 7th and 8th, BevNET Live Winter 2009 is the latest evolution of BevNET’s popular event format. Expanded into a day and a half format, “Beverage School” and BevNET “Best of 2009″ Awards dinner will be held on Monday, December 7 and the BevNET Live “main event” will be held on December 8th.

BevNET’s website stated, “BevNET Live has added a pair of beverage marketers whose longevity and status prove that a brand doesn’t have to come off a Coke or Pepsi truck to successfully move product.”

Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., commented, “I’m thrilled to have been asked to speak on the panel. I feel I have a lot to offer new people starting out in the beverage industry, from creative brands, creative financing approaches to keeping a positive mental attitude through thick and thin.”

“We picked Chris for this panel because we think he’s an innovative thinker and an entrepreneur who has repeatedly proven himself able to address the problems of the small operator with nimble, unconventional solutions,” said Jeffrey Klineman, the editor of BevNET. “Chris Reed was at the vanguard of the growth of natural and gourmet sodas. The longevity — and recent growth — of Reed’s over the years is testament to the quality of the product and his willingness to do what it takes to succeed. He’s not afraid to stand in the way of beverage giants and stake out his turf as an independent operator. Chris was one of our first choices to speak to the community of marketers, retailers, distributors and investors coming to BevNET Live — we think he’s got an immense amount of wisdom and experience to share, and we know he’ll do it with good humor and insight.”

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LOS ANGELES, CA–(Marketwire – November 23, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that the Company has closed a financing Agreement with GemCap Lending I, LLC (“GemCap”) for a $3 million revolving credit facility, secured primarily by its accounts receivable and inventory. The GemCap facility will replace Reed’s existing credit facility. The new senior revolving facility reflects improved eligibility and reduced reserves on Reed’s collateral base for borrowing.
“This financing transaction is a component of our strategy to provide adequate working capital to fund the business opportunities currently on our plate,” commented Jim Linesch, Chief Financial Officer of Reed’s, Inc. “These funds will support our new fast growing private-label business as well as our branded products. Reed’s sales pipeline has never been stronger, and we are looking forward to solid growth and a record year in 2010. GemCap will be a good partner to help fund our growth plans.”

“Reed’s is a welcome addition to our portfolio companies”, commented David Ellis, Co-President of GemCap Lending I, LLC. “They fit our desired profile of a company that is well positioned, with strong potential for increasing success. We are impressed by the integrity and intensity of the management as they pursue their goals. They also have great products that we know well.”

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LOS ANGELES, CA–(Marketwire – November 23, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that the Company has closed a financing Agreement with GemCap Lending I, LLC (“GemCap”) for a $3 million revolving credit facility, secured primarily by its accounts receivable and inventory. The GemCap facility will replace Reed’s existing credit facility. The new senior revolving facility reflects improved eligibility and reduced reserves on Reed’s collateral base for borrowing.

“This financing transaction is a component of our strategy to provide adequate working capital to fund the business opportunities currently on our plate,” commented Jim Linesch, Chief Financial Officer of Reed’s, Inc. “These funds will support our new fast growing private-label business as well as our branded products. Reed’s sales pipeline has never been stronger, and we are looking forward to solid growth and a record year in 2010. GemCap will be a good partner to help fund our growth plans.”
“Reed’s is a welcome addition to our portfolio companies”, commented David Ellis, Co-President of GemCap Lending I, LLC. “They fit our desired profile of a company that is well positioned, with strong potential for increasing success. We are impressed by the integrity and intensity of the management as they pursue their goals. They also have great products that we know well.”

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