Reeds, Inc. Experiences Strong First Quarter Sales for 2010

Reed's, Inc. (NASDAQ:REED) (OTCBB:REEDP) (“Reed’s, or the “Company”), maker of the top-selling sodas in natural food stores nationwide, announced today that the Company anticipates strong first quarter sales following on record fourth quarter revenues, which increased 21% over the prior year.

“We are excited with our fourth quarter 2009 and first quarter 2010 revenue increases. Most of the revenue increases are a result of increases in our branded business. This year we should see continued growth from our core brands as well as significant growth from our new initiatives, including the ‘Reed’s Rx’ line for nausea relief and our growing roster of private label accounts. We expect these newer initiatives, particularly the private label business, to start contributing significantly to revenue growth later this year. There are long lead times associated with getting private label relationships going with the large national chains we are pursuing,” said Mr. Chris Reed, Founder, Chairman and CEO of Reed's, Inc. Added Mr. Reed, “We anticipate a minimum of 20% increase in revenues for fiscal 2010.”

Mr. Jim Linesch, Chief Financial Officer of Reed's, Inc., commented, “We have kept strong controls over our costs, significantly lowered our operating expenses, and have positioned ourselves for the economic recovery that is now clearly under way.” He added, “We have been picking up momentum coming out of the economic downturn and are continuing to expand and introduce new products into the market and explore new sales channels.”

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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