Reed’s, Inc. Announces Distribution Agreement with Specialty Beverage of Virginia

Company to Expand Sales of Premium Branded Products in the South East

Los Angeles, California, May 20, 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 has reached a distribution agreement with Specialty Beverage of Virginia, an affiliate of L. Knife & Sons Co. Specialty Beverage is a direct store distributor in the state of Virginia for some of the best craft brews in the United States, servicing all channels of business.

Christopher Reed, Founder and CEO of Reed’s, Inc., stated, “Specialty Beverage of Virginia is known for working with some of the finest specialty import and local independent craft brewers. This is a great fit for Reed’s and we are excited to partner with them and further develop our brand in Virginia and the Southeast, one of our most important markets, and one of the fastest growing markets in the U.S.”

Eddie Pearson, Reed’s VP of Sales Southern Region, commented, “Specialty Beverage of Virginia is unique in working with some of the best known brewers in the world and is at the forefront of understanding the brewed beverage marketplace and consumers’ tastes for natural and premium products such as Reed’s. They are committed to customer service and satisfaction and becoming the preeminent brewed beverage distributor in Virginia. We are excited to be working with them in this high growth market.”

Neal Cohane, Reed’s Senior VP of Sales and Marketing stated, “We continue our thoughtful and methodical ‘build out’ of distribution across the U.S. We are extremely excited about this distribution opportunity as we move south. No other beverage organization of Reed’s size in the U.S. works as efficiently and intelligently as our sales team. We will not stop expanding distribution until Reed’s & Virgil’s is available in every retail channel; grocery, c-store, drug, mass, club, and on premise. Opportunities for our brands are endless.”