Reed's, Inc. Statement Regarding FDA Inquiry
Released: 08/25/11 09:15 AM EDT

LOS ANGELES, CA -- (Marketwire) -- 08/25/11 -- Reed's, Inc. (NASDAQ: REED) received a letter from the Irvine office of the Food and Drug Administration (FDA) alerting the company to concerns about the language describing the ingredients of two of its non-mainstream products. While the language and descriptions were not misleading or inaccurate, the FDA raised questions regarding the proper identification required in labeling. The Company believes that the FDA inquiry will not have a material impact on its business.

At no point has the FDA raised any questions or concerns about the safety of Reed's products. The FDA concerns relate mostly to Reed's Natural Energy Elixir and Reed's Nausea Relief, and do not relate to any of Reed's or Virgil's glass-bottled natural carbonated soft drinks. Reed's is proactively and openly addressing the FDA's labeling concerns, and has taken measures to immediately correct the FDA concerns. At this point, Reed's is awaiting a response from the FDA on the proposed corrective measures.

"The FDA seems to be increasing pressure to improve labeling and ingredient descriptions," stated Terry Foucaut, Reed's Chief Operating Officer. "We applaud the push toward increased disclosure. We have enthusiastically corrected these minor points in our packaging, and we look forward to closing this matter with the FDA as soon as they are able to review our responses."

About Reed's, Inc.

Reed's, Inc. makes the top selling natural sodas in the natural foods industry sold in over 10,500 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. 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: http://www.reedsinc.com or call 800-99-REEDS.

Follow Reed's on Twitter at http://twitter.com/reedsgingerbrew

Reed's Facebook Fan Page at:
http://www.facebook.com/pages/Reeds-Ginger-Brew-and-Virgils-Natural-Sodas/57143529039?ref=nf

SAFE HARBOR STATEMENT

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-KSB 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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