Reed’s, Inc. Closes Distribution Deal With 5 Star Beverage

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OS ANGELES, CA–(Marketwire – October 22, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of Reed’s and Virgil’s brands, the top-selling sodas in natural food stores nationwide, announced today that it has entered into a distribution agreement with 5 Star Beverage of San Diego. This distribution agreement will increase Reed’s & Virgil’s presence throughout greater San Diego County. 5 Star Beverage services major grocery stores, natural food markets, restaurants, schools and various sized companies with the most extensive selection of beverages in the area. The deal will increase Reed’s distribution in San Diego and the surrounding areas. Key venues and attractions currently served include the world-famous San Diego Zoo and Wild Animal Park, iPayOne Center, PETCO Park, Qualcomm Stadium, 3 major universities and more.



Neal Cohane, Reed’s Vice President of Sales and Marketing stated, “The relationship with 5 Star Beverage is important because of their focus on distributing New-age and Functional beverages, the beverage category for Reed’s brands.” He added, “This increases our coverage in San Diego County as 5 Star provides service to over 1,400 retail accounts. Their geographic distribution starts in the North at the Orange County line, moving south to the Mexican border, east to Julian and west to the Pacific Ocean.”



Chris Reed, founder and CEO of Reed’s stated, “5 Star gets brands like ours and should be a great fit in a great marketplace. This further supports our strategy to increase our distribution.” Reed added, “This comes on the heels of our recent success with our new private label business and other distribution deals. Things seem to be heating up here at Reed’s.”



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 owns 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, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada. For more information about Reed’s, please visit the company’s website at: http://www.reedsgingerbrew.com or call 800-99-REEDS.



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