July 1, 2008

Reed’s, Inc. Announces Enhanced Partnership With Sprouts Farmers Market

Partnership will expand presence of Reed's and Virgil's brands within all Sprouts Farmers Market locations throughout Arizona, Texas, California & Colorado

Integrated Corporate Relations

John Mills


[email protected]

Reed's, Inc. (NASDAQ:REED) announced today that it has formed an expanded partnership with Sprouts Farmers Market, a natural foods retailer based in Phoenix, Arizona. Sprouts Farmers Market carries a wide variety of natural and organic products, and has committed to carrying the full line of Reed's and Virgil's natural sodas throughout all of its 26 locations.

Christopher Reed, Founder and CEO of Reed's, Inc., stated, "This expanded partnership with Sprouts reflects Reed's commitment and success in expanding into the mainstream marketplace. As a leading retailer of natural and organic products across its market area, Sprouts represents a significant opportunity to increase brand awareness across the Southwest United States."

Eddie Pearson, Vice President Natural Food Sales for Reed's, Inc., commented, "This partnership will truly expand our brand awareness throughout the Southwest and Rocky Mountain Regions of the United States. Further, we believe this enhanced partnership creates an opportunity to expand our consumer base by introducing our annual 'partner-with-purpose' marketing plan with Sprouts. This coordinated marketing program will include participation in sampling programs, weekly Ad/Circular activity, and additional promotional efforts, beginning with the Labor Day & Holiday time periods."

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 has acquired 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. Other product lines include Reed's Ginger Juice Brews, Reed's Ginger Candies, and Reed's Ginger Ice Creams. 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.


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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