Reed's, Inc. Announces New Distribution Agreement for Montana

Reed's Continues to Close Distribution Gaps Across North America

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LOS ANGELES, CA--(Marketwire - Sep 19, 2012) - Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has reached a new agreement with Zip Inc (dba Zip Beverage), to distribute Reed's and Virgil's brands throughout the Montana market. Zip Beverage was founded in 1969 and is headquartered in Butte, Montana. Zip proudly distributes some of the most popular beer brands in the country consisting of Anheuser-Busch, Becks, Heineken, Four Loco and many other craft beers, just to name a few. Some non-alcoholic brands that are distributed in Zip's market are Sweet Leaf Tea, BodyArmor, Marley's Mellow, San Pellegrino and a few Pepsi and Dr Pepper 7up brands.

Neal Cohane, Senior VP of Sales & Marketing, stated, "We continue to capitalize on distribution opportunities across North America. The fact that Zip Beverage is adding Reed's and Virgil's brands to their prestigious portfolio of products demonstrates the demand our brands are experiencing. This new partnership opens up our brands to the entire state of Montana and we look forward to developing a solid partnership with the Zip management team as we increase our availability and consumer following."

About Zip Inc. / Zip Beverage

Founded in 1969, Zip Beverage is a trusted distributor headquartered in Butte, Montana. Under the leadership of Bill Watkins, Zip services hundreds of accounts in the state of Montana. Throughout the last 43 years, Zip Beverage has been a company that takes pride in developing itself as a trusted business partner with all retail accounts they have established in their market. Zip Beverage is the proud distributor of the following brands: Beer: Anheuser-Busch, Stella Artois, Bass, Becks, Widmer, Red Hook, Kona, Big Sky Brewing, Harvest Moon Brewing, Great Northern Brewing, Four Loco, Stone Brewing, Heineken, New Castle, New Belgium Brewing, Bridgeport Brewing, Pabst, Rainier, Schmidt and Seagrams. Other Beverages include: Icelandic Glacial, Liquid Ice Energy, Cascade 0 Cal, Kona Red, Muscle Milk, Wired Energy, Vernor's Ginger Ale, Calypso Lemonade, Sweat Leaf Tea, Body Armor, Go Fast Energy, Marley's Mellow Mood, Xing Tea, San Pellegrino/Perrier, Nesquik, Talking Rain, Big Spring Water, RC, Diet Rite, Sun Drop, Mug Root Beer and Sierra Mist.

About Reed's, Inc.

Reed's, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. 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. 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. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.

For more information about Reed's, please visit the Company's website at: or call 800-99-REEDS.

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Some portions of this press release, particularly those describing Reed's goals and strategies, contain "forward-looking statements." These forward-looking statements can generally be identified as such because the context of the statement will include words, such as "expects," "should," "believes," "anticipates" or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. 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. These risks and uncertainties include difficulty in marketing its products and services, maintaining and protecting brand recognition, the need for significant capital, dependence on third party distributors, dependence on third party brewers, increasing costs of fuel and freight, protection of intellectual property, competition 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-K and Form 10-Q, 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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Reed's, Inc.
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