Reed’s, Inc. Engages Partnership Capital Growth Advisors to Explore Strategic Partnership and Investment Opportunities

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Press Release

Reed’s, Inc. Engages Partnership Capital Growth Advisors to Explore Strategic Partnership and Investment Opportunities

LOS ANGELES, July 21, 2009 (MARKETWIRE) -- Reed's, Inc. (Nasdaq:REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has engaged San Francisco-based Partnership Capital Growth Advisors (PCGA) to introduce the company to potential strategic partners within the beverage space. PCGA has completed transactions for Sambazon, New Leaf Paper, Adina, Mona Vie, Mrs. Greens, Planet Organic and others, with a focus on healthy, active and sustainable living brands.

“Partnership Capital Growth is ideally suited to assist Reed’s with identifying opportunities for strategic partnerships and investment to help bring the company to the next level,” commented Chris Reed, Founder and CEO of Reed’s, Inc. “I have first-hand knowledge of PCGA’s expertise in this space and I am confident that they can introduce Reed’s to companies that will synergistically help us to grow our brands and distribution.”

Brent Knudsen, Founder and Managing Partner of PCGA said, ”Reed’s is an exciting opportunity with the leading soda brands in the high growth natural food channel, and a perfect fit for our focus on identifying and concluding strong partnerships to continue and accelerate growth.”

Mr. Reed added, “Transactions of similar companies in our space, like Izze and Honest Tea, have had valuations of 3 times and 5 times sales respectively. These deals were done in a more robust economy; however, more recent private transactions in our space have still been in the 2 to 3 times sales valuation range. Our public stock is currently trading at one times sales. We would require valuations more in line with the current private transactions in our space from interested parties.”

“We’re looking for a partner who can bring resources, distribution, and production buying power to our brands,” continued Mr. Reed. “We are the top-selling soft drinks in one industry in the US, the natural food industry. With the right partner, we expect that we can be a top-seller in mainstream, too.”

“With ginger being the major flavor ingredient in our Reed’s Ginger Brews, we should be able to sell even better in other countries, especially Asia, where consumers have more experience with ginger. The perfect partner would facilitate our product launches outside the US,” concluded Mr. Reed.

About Partnership Capital Growth Advisors

Partnership Capital Growth is a boutique investment bank that provides full-service merger and acquisition, financing and capital structure advisory services to middle market companies. The company focuses exclusively on consumer products and services in the areas of healthy, active and sustainable living. Partnership Capital Growth Advisors is based in San Francisco, California. www.pcg-advisors.com

About Reed's, Inc.

Reed's, Inc. makes the top-selling sodas sold in natural food markets nationwide, and is currently selling in more than 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.

View Reed’s YouTube channel at: http://www.youtube.com/reedsgingerbrew

Review Reed’s Delicious bookmarks at: http://www.delicious.com/reedsinc

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

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

Subscribe to Reed's RSS feed at: http://www.irthcommunications.com/REED_rss.xml

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.

Source: Reed’s, Inc.

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Mark B. Moline
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