REED Reeds Inc (QX)

Reed's, Inc. (NASDAQ: REED) (OTCBB: REEDP), maker of top-selling sodas in natural food stores nationwide, announced today that it completed its securities purchase agreement with institutional investors, raising an aggregate amount of $750,000 in gross proceeds (before placement agent fees and offering expenses) through the sale 304,880 shares of its common stock at $2.46 per share and warrants to purchase up to 121,952 additional shares of common stock.

Mr. Chris Reed, Founder, Chairman and CEO of Reed's, Inc., stated, "We received an unsolicited offer to buy shares from one of our institutional investors. With the stock up significantly, we took advantage of an opportunity to beef up the capital reserves of the Company as we move into a robust 2011."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.

Source Capital Group, Inc. acted as the exclusive placement agent for the transaction.

About Reed's, Inc.

Reed's, Inc. makes several brands of top selling natural sodas and beverages. Their products are sold in over 10,500 stores throughout the natural foods industry and supermarkets nationwide. Reed's six award-winning, non-alcoholic Ginger Brews are unique in the beverage industry as they are made using fresh ginger, spices and fruits with a brewing process that predates commercial soft drinks. The Company also produces a Natural Energy Elixir and 'Reed's Rx', a Natural Ginger Nausea Relief product for the drug store and grocery retail channels. Reed's, Inc. owns China Cola and the Virgil's line of sodas that includes the award-winning Virgil's Root Beer as well as Virgil's Cream Soda, Black Cherry Cream Soda, Orange Cream Soda and Real Cola. The Company has also introduced its new 'Virgil's Zero' line of Stevia-sweetened diet sodas in all these popular flavors. In 2009, Reed's acquired the Sonoma Sparkler brand and started producing Private Label natural beverages for select national chains. Other product lines include Reed's Ginger Candies and Reed's Ginger Ice Creams.

Reed's products are sold internationally in Canada and Mexico, along with a small presence in Europe, the Middle East, 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-K 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