REED Reeds Inc (QX)

Reed's, Inc. (NASDAQ: REED) (OTCBB: REEDP), maker of the top-selling sodas in natural food stores nationwide, announced today that it anticipates minimum top line growth of 30% in 2011 as it expands revenue opportunities for its brands and its private label initiative.

"We're probably entering 2011 with more momentum and prospects than what we had at the beginning of 2010. We're anticipating solid growth in 2011 with sales of both our branded and private label products expected to increase," stated Mr. Chris Reed, Founder, Chairman and CEO of Reed's, Inc. "Our core Reed's and Virgil's brands are performing very well and we expect our recently re-launched Virgil's Zero line of no calorie Stevia-sweetened beverages to contribute significantly. We have a number of new launches for 2011 that will be very exciting. These new product launches will start in the first quarter of this year. We have a very healthy queue of potential private label customers and expect to bring on at least four or five new customers in 2011 to add to our current four national chains customers. Operating expenses are not growing as fast as gross profits so we should continue to move into profitability. 2011 will see acceleration of consumer exposure campaigns around our brands. We should be able to continue our healthy expansion without the need for additional capital raises."

About Reed's, Inc.

Reed's, Inc. makes the top selling natural sodas in the natural foods industry, sold in over 10,500 natural food markets and supermarkets nationwide. In 2009, Reed's started producing Private Label natural beverages for select national chains. Its six award-winning, non-alcoholic Ginger Brews are unique in the beverage industry. Ginger Brews are made using fresh ginger, spices and fruits with a brewing process that predates commercial soft drinks. Reed's, Inc. owns Virgil's Root Beer, the top-selling cola line in natural foods, as well as China Cola, the top-selling natural foods cola. Recently, Reed's introduced its Reed's All Natural Ginger Nausea Relief product for the drug store and grocery retail channels. Reed's also acquired the Sonoma Sparkler brand at the end of 2009, an all natural sparkling juice 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, and restaurants nationwide. Reed's products are also sold in Canada and Mexico, along with a small presence in Europe, the Middle East, South Africa, Japan and Singapore. For more information about Reed's, please visit the company's website at: http://www.reedsinc.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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Investor Relations Contact: Mr. Andrew Haag Managing Partner IRTH Communications, LLC Tel: +1-888-825-6456 E-mail: Email Contact Website: www.irthcommunications.com