REED Reeds Inc

Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it experienced brisk sales in January, due mostly to base business expansion, with new products contributing to the performance.

"We are off to a great start with our January revenues up over 30% from last year's month one," stated Chris Reed, Founder, Chairman and CEO of Reed's, Inc. "While our established top selling soda sales are recovering from the economic setbacks of 2009, we are also landing important private label contracts, which are keeping our brewery very busy. Our recently acquired Sonoma Sparklers brand is contributing, especially as a holiday and celebration drink line. Our private label initiative will have a solid impact on our performance in 2010."

"We will be introducing a whole new product very soon," added Mr. Reed. "The announcement of our new over-the-counter anti-nausea Reed'sRx line is expected to be a welcomed product line with customers and national retailers."

"This is really an exciting time for our Company, as we are beginning to realize many of the goals we had when we started in this business over 20 years ago," continued Mr. Reed.

"While our competitors find themselves stumbling, and the mega-multinationals slowly come around to adopting ingredients like Stevia, which we have used in our diet sodas for years, Reed's continues to innovate and dominate in our space. I'm extremely proud of our team, and thankful to our loyal customers and shareholders, who share the love of our products and the vision of our Company," concluded Mr. Reed.

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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