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 has reached a distribution agreement with SPIKE Beverage LLC, a full-service direct store delivery distributor of premium non-alcohol beverages with six offices throughout the state of Arizona. Under the agreement, SPIKE has agreed to begin distributing Reed's and Virgil's brands in all retail channels, large and small.

Bill Osteen, Senior VP of Business Operations for SPIKE, stated, "SPIKE Beverage is extremely excited with its new partnership with Reed's, Inc. We have been following the progress of Reed's and Virgil's brands for some time now and believe their brands are a perfect complement to our present distribution system. We have been seeing a growing demand in the premium 'all natural' carbonated soft drink category and know we are partnering with a leader in this segment."

Neal Cohane, Senior Vice President of Sales and Marketing for Reed's, Inc., commented, "This is another great step forward for our brands. SPIKE Beverage will prove to be great partners, helping our portfolio of brands land in channels of distribution that are presently untapped. Mainstream retailers throughout Arizona have been recommending that we partner with no one else in the state except SPIKE to expand our footprint. Thanks to Eddie Pearson, Reed's VP Sales in the South Region, for landing this great opportunity."

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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About SPIKE Beverage LLC

SPIKE Beverage LLC is a full-service, direct store delivery distributor of premium non-alcohol beverages throughout the state of Arizona. SPIKE is recognized for its innovative business model and trend-setting product portfolio. SPIKE has six offices throughout the state of Arizona. For more information, please visit http://www.spikebeverage.com.

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