Ginger Ale to Compete With Over the Counter Drugs

  Reed's,
Inc. (NASDAQ: REED) (NASDAQ: REEDR), maker of the top-selling sodas in natural food
stores nationwide, announced today that it will begin producing new
products designed to compete with existing over the counter medicines.

"For years we have been hearing from our customers on how they use our ginger brews to treat health conditions. We've spoken to customers using our drinks for motion sickness, food poisoning, migraines, morning sickness, irritable bowel syndrome and even autism," commented Mr. Chris Reed, Founder, Chairman and CEO of Reed's, Inc.

"I started this business because I believed in the healing power of ginger. I studied Ayurveda (East Indian herbology) and Chinese medicine, and using the principles of these herbal pharmacopeias, I developed my Reed's Ginger Brews. Responding to the growing trend toward more natural products, drug stores have started to include natural drug alternatives alongside over-the-counter drugs. In fact, we have been encouraged to develop these products for a certain drug store chain. Therefore, we have created a new line of products based on the Reed's Ginger brand. The new brand includes variations on some of our most popular ginger products and will have a new trademark, R(x)eed's where the r and x are joined like in drug store signs of old days."

Mr. Reed added, "Since we started making our Reed's Ginger Brews, considerable research has come out showing the health benefits of ginger, including its ability to kill bad bacteria in the digestive track, treat post-chemo nausea and combat cancer cells. We look forward to the ongoing, research around ginger and believe ginger should be a regular component of everyone's diet. We are the only company in the world that brews fresh ginger to make our ginger ales, which is the main reason our drinks have worked so well for our customers."

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. 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.

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