Reed's, Inc. Announces Record Fourth Quarter Revenues

LOS ANGELES, CA–(Marketwire – January 14, 2010) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that the Company experienced record revenue growth in the fourth quarter ending December 31, 2009, seeing sales rise approximately 21% over the same quarter in 2008. Detailed financial results will be available with the reporting of the audited financials in the company’s 10K expected to be filed with the SEC in March.

“We are thrilled with our fourth quarter revenue growth,” stated Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., “2009 proved to be a difficult year for beverage companies due to the global recession. Some of the largest beverage companies reported sales decreases in the range of 8% to 10% and many premium brands were down closer to 30%. In light of this, Reed’s held up very well, reporting first through third quarter sales down between 4%-8% per quarter, well above the industry average.”

Mr. Reed added, “The hard work is paying off. The strong performance of our brands; along with contribution from our Sonoma Sparkler acquisition and our newly launched private label business are helping to propel the business back into a growth mode. Our business will continue to benefit by a recovering economy and our new product lines. The private label business is opening new sales channels with some of the largest retailers in the country. These new relationships are benefiting our branded business as well. We have great momentum going into 2010 and expect that both our branded and private label business, along with new product offerings to be announced, will result in amazing growth of profitable business during the next few years.”

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About Reed’s, Inc.

Reed’s, Inc. makes the top selling sodas in natural food markets nationwide and is currently selling in 10,500 supermarkets in natural foods and mainstream supermarkets. 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.

In addition, 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. Recently, Reed’s added the Sonoma Sparkler brands to its line, a celebration drink with an established customer base. Other product lines include: Reed’s Ginger Candies and Reed’s Ginger Ice Creams.

Reed’s products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada. For more information about Reed’s, please visit the company’s website at: http://www.reedsgingerbrew.com or call 800-99-REEDS.

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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-KSB 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.