Reed's, Inc. Announces New Distribution Agreement in the South Carolina Market

LOS ANGELES, CA–(Marketwire – Jun 19, 2012) – Reeds Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has reached a new distribution agreement with Republic National Distribution Company of South Carolina (RNDC), a leader in the South Carolina beverage distribution market, centrally headquartered in Columbia, SC.

Chris Reed, Founder and Chief Executive Officer of Reed’s Inc., commented, “We are excited about our new partnership in South Carolina with RNDC, and look forward to capitalizing on all opportunities, in all channels of business in South Carolina. Due to our disciplined distribution build-out plans, we are broadening the reach of Reed’s and Virgil’s brands to all corners of North America.”

Neal Cohane, Senior Vice President of Sales and Marketing for Reed’s Inc., stated, “This partnership gives us 100% coverage in South Carolina, bringing Reed’s one step closer to having contiguous DSD coverage across the entire Southeastern United States. More importantly, this partnership closes a gap in our distribution, giving Reed’s total store coverage with some very important, national and regional chain supermarkets. Having 100% chain-wide distribution coverage allows Reed’s to develop stronger, more strategic sales and marketing promotions. RNDC has proven expertise in the non-alcoholic and new age beverage category and demonstrates they have exceptional relationships with retailers throughout their marketplace. The South Region team of Reed’s, led by Eddie Pearson, continues to expand Reed’s presence throughout the southern marketplace.”

About RNDC

RNDC is the second largest beverage alcohol distributor of premium wine and spirits in the U.S. with wholly owned operations in Alabama, Colorado, District of Columbia, Florida, Louisiana, Maryland, Mississippi, Nebraska, North Carolina, North Dakota, South Dakota, Texas, Virginia, and West Virginia. RNDC also operates in Arizona, Indiana, Kentucky, Ohio, Oklahoma, and South Carolina through venture partnerships. In total, RNDC employs more than 7,000 hard working individuals nationwide. The earliest RNDC predecessor company traces its roots back to a single distributorship that was founded back in 1898 in Pensacola, Florida.

About Reed’s, Inc.

Reed’s, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil’s Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line.

Other product lines include: Reed’s Ginger Candies and Reed’s Ginger Ice Creams. In 2009, Reed’s started producing private label natural beverages for select national chains. Reed’s products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.

For more information about Reed’s, please visit the Company’s website at: http://www.reedsinc.com or call 800-99-REEDS.

Follow Reed’s on Twitter at http://twitter.com/reedsgingerbrew

Reed’s Facebook Fan Page at https://www.facebook.com/ReedsGingerBrew

SAFE HARBOR STATEMENT

Some portions of this press release, particularly those describing Reed’s goals and strategies, contain “forward-looking statements.” These forward-looking statements can generally be identified as such because the context of the statement will include words, such as “expects,” “should,” “believes,” “anticipates” or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. While Reed’s is working to achieve those goals and strategies, actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These risks and uncertainties include difficulty in marketing its products and services, maintaining and protecting brand recognition, the need for significant capital, dependence on third party distributors, dependence on third party brewers, increasing costs of fuel and freight, protection of intellectual property, competition and other factors, any of which could have an adverse effect on the business plans of Reed’s, its reputation in the industry or its expected financial return from operations and results of operations. In light of significant risks and uncertainties inherent in forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by Reed’s that they will achieve such forward-looking statements. For further details and a discussion of these and other risks and uncertainties, please see our most recent reports on Form 10-K and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Reed’s undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.