REED Reeds Inc

Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has formed an expanded relationship with Cost Plus World Market, an Oakland, California-based specialty retailer with 270 stores in 31 states across the US.

Bob Lyon, VP of Sales, West Region for Reed's, Inc., stated, "Cost Plus World Market is an extremely exciting retailer to partner with on a national basis. With this newly built relationship, Cost Plus World Market will begin carrying Reed's Ginger Candy Tins, Original Ginger Candy Chews, Reed's Extra Ginger Brew in the 7oz. 8-packs and the Virgil's Party Keg in all stores nationwide. As we continue to enhance our relationship we hope to increase our presence with newly added Reed's and Virgil's brands and packages in all stores."

About Cost Plus World Market

Cost Plus World Market operates 270 stores in 31 states under the names "World Market" and "Cost Plus World Market." The store features an ever-changing selection of casual home furnishings, housewares, gifts, jewelry, decorative accessories, over 500 international wines, gourmet foods and beverages offered at affordable prices and are imported from more than 50 countries. Many items are unique and exclusive to World Market regularly supplied by an international network of individual and regional artisans developed over the Company's 50 years in the import business. The majority of the store's furniture is constructed of environmentally friendly, farm raised wood while a number of items are made out of recycled glass and yet countless are constructed of environmentally friendly bamboo. The value, breadth and continual refreshment of products invite customers to come back throughout a lifetime of changing home furnishings and entertaining needs.

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. 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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