Reed's, Inc. Adds Additional Business Line and Expands Revenue Opportunities

New private label business anticipated to substantially increase revenues and gross profit

LOS ANGELES -- July 28, 2009 (MARKETWIRE) -- Reed's, Inc. (Nasdaq:REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has undertaken a new line of business, utilizing its streamlined bottling operation to exploit opportunities to private label products that are non-competitive to its existing lines of business. The company anticipates that this new business line will dramatically increase revenues and improve gross profit.

“We have increased efficiencies and created additional available line time within our brewing and bottling operation,” commented Mr. Chris Reed, Founder and CEO of Reed’s, Inc. “In essence, we’ve tooled up our plant to a point where we have created about three to four thousand additional hours a year of line time to dedicate to the private label business. This could double the current size of our company.”

Mr. Reed added, “Our initial outreach to the larger supermarket chains in the US has been met with significant interest. Our plant has unique packaging capabilities that, up until now, were only found outside North America. This gives us a competitive edge when bidding these specialty beverage products. We are not offering our proprietary formulas for private label but, are instead, developing non-competing flavors.“

“Upon full implementation, this new business should significantly increase our revenues, and gross profit,” continued Mr. Reed. “We are committed to exploring every area of potential growth while pursuing the least dilution for shareholders. The additional revenues and cash flow from this initiative could self-fund our growth and brand development. We feel that this new business should allow us to drive expanded marketing and awareness of our brands.”

About Reed's, Inc.

Reed's, Inc. makes the top-selling sodas sold in natural food markets nationwide, and is currently selling in more than 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.

Source: Reed’s, Inc.

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