Reed’s Addresses Growing Market for Naturally Sweetened Diet Sodas with New Improved Virgil’s Diet Line

Company to Relaunch Virgil’s Stevia Sweetened Diet Sodas with Improved Flavor and Packaging Design

Los Angeles, California, Sept. 15, 2010 — Reed’s, Inc. (NASDAQ:REED – News) (OTC.BB:REEDP – News), maker of the top-selling sodas in natural food stores nationwide, announced today that it will address the growing market for naturally sweetened diet sodas with new and improved flavor combinations for its Virgil’s diet line that uses Stevia to add natural sweetness as well as a new packaging design.

“Reed’s is committed to using only 100% all natural ingredients in all of our products, including our improved Virgil’s diet line that has a spectacular new look and taste,” stated Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “The new flavor combinations in our Virgil’s diet sodas build on the reputation of our original award-winning Virgil’s line and use Stevia, a natural, herb-based zero calorie sweetener, to create an all natural premium beverage that is refreshing and delicious. Our current Virgil’s diet line is growing 70%-plus year over year. We anticipate an acceleration of sales with the new look and formulations.”

While the traditional carbonated soda category has faced headwinds on health, wellness, and obesity concerns, the diet soda market has performed better as the market has shifted to drinks with benefits that appeal to health conscious consumers. Low calorie diet cola sales increased 2% reaching almost $4 billion in sales for the one-year period ended Jan. 23, 2010, compared to a 1.6% increase for regular cola sales.* The low-calorie beverage segment continues to grow as consumers worry about nutritional issues and demand healthier options.

Added Mr. Reed, “Consumers are focusing more and more on the origins of the food and drinks they buy, and wanting to know what their food contains. Stevia works great with the traditional spices that we use to brew our Virgil’s line. We’re thrilled to offer dieters our Virgil’s award-winning taste and a healthy alternative to the artificial chemical sweeteners that are being used in many other diet sodas today.”

For more information on Reed’s award-winning line of all natural brewed sodas, please visit: http://www.reedsinc.com/.

*SOURCE: The Nielsen Co., Schaumburg, Ill., food, drug and mass merchandise outlets including Wal-Mart for the 52 weeks ending Jan. 23, 2010.