July 23, 2008

Reed’s Inc Expands Virgil’s Cola Line With Introduction of Virgil’s Diet Cola

Reed's, Inc. (NASDAQ:REED) announced today that it has launched a new diet version of its Virgil's cola line. Virgil's Diet Real Cola, which is currently offered through select natural food accounts, is expected to launch nationwide to over 1,000 supermarket accounts. The product is offered in 12 oz long neck bottles and packaged as a 4-pack.

Virgil's Real Diet Cola is a classic cola recipe made naturally using the finest cola ingredients and contains no artificial sweeteners. The premium diet cola is infused with tastes from around the world including Kola Nut, clove bud oil, vanilla, cinnamon, nutmeg, cassia oil, and orange, lemon and lime oils.

"We are very excited to announce the addition of our Diet Cola for the Virgil's brand," said Christopher Reed, Founder and CEO of Reed's, Inc. "Virgil's Diet Cola expands upon the Virgil's cola line which we successfully introduced within the mainstream marketplace in March of 2008. While currently distributed through select natural foods accounts, the feedback has been extremely positive and we look forward to making Virgil's Diet Cola available to mainstream supermarket accounts nationwide. We continue to see significant opportunity to leverage the strength of the Virgil's brand name within the natural foods and mainstream channels by offering diet versions of our popular flavors."

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 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.