Reed’s, Inc. Closes Distribution Deal With 5 Star Beverage

LOS ANGELES, CA–(Marketwire – October 22, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of Reed’s and Virgil’s brands, the top-selling sodas in natural food stores nationwide, announced today that it has entered into a distribution agreement with 5 Star Beverage of San Diego. This distribution agreement will increase Reed’s & Virgil’s presence throughout greater San Diego County. 5 Star Beverage services major grocery stores, natural food markets, restaurants, schools and various sized companies with the most extensive selection of beverages in the area. The deal will increase Reed’s distribution in San Diego and the surrounding areas. Key venues and attractions currently served include the world-famous San Diego Zoo and Wild Animal Park, iPayOne Center, PETCO Park, Qualcomm Stadium, 3 major universities and more.

Neal Cohane, Reed’s Vice President of Sales and Marketing stated, “The relationship with 5 Star Beverage is important because of their focus on distributing New-age and Functional beverages, the beverage category for Reed’s brands.” He added, “This increases our coverage in San Diego County as 5 Star provides service to over 1,400 retail accounts. Their geographic distribution starts in the North at the Orange County line, moving south to the Mexican border, east to Julian and west to the Pacific Ocean.”

Chris Reed, founder and CEO of Reed’s stated, “5 Star gets brands like ours and should be a great fit in a great marketplace. This further supports our strategy to increase our distribution.” Reed added, “This comes on the heels of our recent success with our new private label business and other distribution deals. Things seem to be heating up here at Reed’s.”

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. 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. 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.