Reed's Statement Regarding FDA Inquiry

Reed's, Inc.

received a letter from the Irvine office of the Food and Drug Administration 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.