Reed's, Inc. Announces Illinois Launch; Earl Gaudio & Son, Inc. to Distribute Reed's Product Line.

LOS ANGELES -- Reed's, Inc. (NASDAQ: REED) announced today that Earl Gaudio & Son, a leading beer and new age beverage distributor, has agreed to distribute Reed's product line throughout Eastern Illinois.

Christopher Reed, Founder and CEO of Reed's, Inc., stated, "Earl Gaudio & Son has an established reputation for providing leading, quality brands throughout Eastern Illinois and we are very pleased to partner with such a strong distributor. This is consistent with our strategy of partnering with leading distributors within their respective markets as we continue to grow Reed's national presence."

Earl Gaudio & Son, Inc., an Anheuser-Busch distributor, started in 1904 and has been family owned for four generations. The company's mission is to provide quality products and service to people of the following Illinois counties: Vermilion, Edgar, Iroqouis, Clark, Douglas and Champaign and the Indiana Counties of: Vermillion, Warren and Fountain.

About Reed's, Inc.

Reed's, Inc. makes the top selling sodas in natural foods markets nationwide and is currently taking its natural food market success into the mainstream markets. Its six award winning non-alcoholic Ginger Brews are unique in the beverage industry being brewed not manufactured and use fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. In addition, the Company has acquired 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 Juice Brews, Reed's Ginger Candies and Reed's Ginger Ice Creams. Reed's products are sold through specialty gourmet and natural food stores, supermarket chains, retail stores and restaurants nationwide and in Canada. For more information about Reed's, please visit the company's website at: www.reedsgingerbrew.com or call (800) 99-REEDS.

SAFE HARBOR STATEMENT

Some portions of this press release, particularly those describing Reed's goals and strategies, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, including difficulties in marketing its products and services, need for capital, competition from other companies 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-QSB, 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.