2008-07-25 15:59:02 -

- Integrated Corporate Relations John Mills, 310-954-1105 jmills@icrinc.com Reed's, Inc. (NASDAQ:REED) announced today that Kroger Supermarkets, the largest full service supermarket in the US, which carries a wide variety of natural and organic products, has agreed to carry select Reed's and Virgil's beverage products in at least 815 locations operating under the retail banners of Kroger, Dillon's, Fry's,

King Soopers and Smith's. The initial launch will make Reed's Premium Ginger Brew, Reed's Extra Ginger Brew, Virgil's Root Beer, Virgil's Cream Soda and Virgil's Real Cola available to Kroger Shoppers in select store locations throughout the United States.

Christopher Reed, Founder and CEO of Reed's, Inc., stated, "Our partnership with Kroger Supermarkets reflects Reed's commitment and success in expanding into the mainstream marketplace. As a leading retailer of natural and organic products across the US, Kroger represents a significant opportunity to increase brand awareness in the largest supermarket grocery chain in the country."

Bob Lyon, Vice President National Accounts for Reed's, Inc., commented, "Reed's is quickly moving into mainstream grocers and with this new partnership, we look forward to driving the Reed's Brand through the development of full year marketing plans, 'in-store' sampling campaigns and additional promotion efforts which will greatly expand our reach with Kroger's customers across the country."

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.

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.

¶ Initial Launch to Include over 800 Kroger Stores Throughout the
U.S.