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Reed’s, Inc. Announces Exclusive Distribution Agreement With D.B. Miller, Inc. Dba Austin Beverage Co.

August 10, 2007

Reed’s, Inc. (OTCBB:REED) announced today that it has entered into an exclusive distribution agreement with D.B. Miller, Inc. dba Austin Beverage Co. for distribution of Reed’s brands throughout Central Texas.

Founded in 2000, D.B. Miller, Inc. dba Austin Beverage Co. distributes a comprehensive portfolio of non-alcoholic, premium beverage brands including Gatorade, Crystal Geyser, Sweet Leaf Tea, Bawls, Wild Fruits and Cool Mountain Sodas to approximately 500 retail accounts throughout Central Texas.

Christopher Reed, Founder and CEO of Reed’s, Inc., stated, “We are tremendously pleased with Austin Beverage’s decision to add Reed’s to their growing portfolio of brands. Our partnership with Austin Beverage represents Reed’s entrance into the Texas marketplace. As we continue to further the reach of the Reed’s brand within new and existing markets, part of our ongoing strategy will include establishing relationships with leading distributors such as Austin Beverage.”

Brad Miller, President of D.B. Miller, Inc. dba Austin Beverage Co., commented, “We are excited to be distributing a high quality beverage such as Reed’s Ginger Brew and Virgil’s Rootbeer and Cream Soda products.”

About Reed’s, Inc.

Reed’s, Inc. develops, manufactures, markets and sells innovative, all natural, non-alcoholic beverages, candies and ice creams. Its non-alcoholic Ginger Brews are unique in the beverage industry being brewed from fresh ginger, spices and fruits. Award-winning gourmet product lines include: Reed’s Ginger Brews, Reed’s Ginger Juice Brews, Reed’s Ginger Candies and Reed’s Ginger Ice Creams. Additionally, the Company has acquired Virgil’s Root Beer and China Cola product lines. Reed’s products are sold through specialty gourmet and natural food stores, supermarket chains, retail stores and restaurants nationwide and in Canada. For more information about Reed’s, please visit the company’s website at: www.reedsgingerbrew.com or call (800) 99-REEDS.

SAFE HARBOR STATEMENT

Some portions of this press release, particularly those describing Reed’s goals and strategies, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, including difficulties in marketing its products and services, need for capital, competition from other companies 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-QSB, 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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