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Reed’s, Inc. Experiences Strong First Quarter Sales For 2010

Reed's, Inc. (NASDAQ: REED) (OTCBB: REEDP) (“Reed’s, or the “Company”), maker of the top-selling sodas in natural food stores nationwide, announced today that the Company anticipates strong first quarter sales following on record fourth quarter revenues, which increased 21% over the prior year.

“We are excited with our fourth quarter 2009 and first quarter 2010 revenue increases. Most of the revenue increases are a result of increases in our branded business. This year we should see continued growth from our core brands as well as significant growth from our new initiatives, including the ‘Reed’s Rx’ line for nausea relief and our growing roster of private label accounts. We expect these newer initiatives, particularly the private label business, to start contributing significantly to revenue growth later this year. There are long lead times associated with getting private label relationships going with the large national chains we are pursuing,” said Mr. Chris Reed, Founder, Chairman and CEO of Reed's, Inc. Added Mr. Reed, “We anticipate a minimum of 20% increase in revenues for fiscal 2010.”

Mr. Jim Linesch, Chief Financial Officer of Reed's, Inc., commented, “We have kept strong controls over our costs, significantly lowered our operating expenses, and have positioned ourselves for the economic recovery that is now clearly under way.” He added, “We have been picking up momentum coming out of the economic downturn and are continuing to expand and introduce new products into the market and explore new sales channels.”

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.

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