Reed's Growth in Mainstream Markets Four Times the Average for the Premium Soft Drink Category

LOS ANGELES, CA, Jul 07 (MARKET WIRE) --
Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural
food stores nationwide, announced today that according to industry data,
Reed's and Virgil's are increasing their market share at a rate of over
450% greater than the overall Premium Soft Drink category in the U.S. The
category is referred to as the 'Premium Select' category.

"Reed's & Virgil's are outpacing the entire U.S. Carbonated Soft Drink
category which is only growing at +1.4% annually and the premium soft
drink category which grew at 5.5% over the last twelve months," commented
Mr. Chris Reed, Founder and CEO of Reed's, Inc. "The significance of these
numbers is that we are getting this kind of growth while, for the most
part, our products are being sold in the slower trafficked area of the
store, the Natural & Specialty section, while most other premium brands
are selling in the more heavily trafficked 'main' beverage aisle."

"Our recent product introductions are fitting nicely with consumer
preferences; these include our new diet Virgil's product line, our new
Virgil's Orange Cream Soda and our new Reed's Natural Energy Elixir,"
added Mr. Reed. "In addition, we recently introduced new high gloss
12-pack cartons for our Reed's Extra Ginger Brew and our Virgil's Root
Beer. We are hoping these new formats and new products will increase our
competitive edge in the premium soft drink category. Our sales force
continues to leverage our success and push for our products to be moved
into the higher traffic mainstream beverage aisles of major supermarket
chain stores."

About Reed's, Inc.

Reed's, Inc. makes the top-selling sodas sold 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.

Follow Reed's on Twitter at: http://www.twitter.com/reedsgingerbrew

Reed's Delicious bookmarks at: http://www.delicious.com/reedsinc

Reed's Facebook Fan Page at:
http://www.facebook.com/pages/Reeds-Ginger-Brew-and-Virgils-Natural-Sodas/571435
9039?ref=nf

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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.

Contact

IRTH Communications, LLC
Mark B. Moline
Managing Partner
760-458-4899
Email Contact
http://www.irthcommunications.com
http://www.twitter.com/irthcomm

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