Jones Soda Co. (JSDA) Expands Retail Distribution with Walmart

May 27, 2010 (Business Wire) — Jones Soda Co. (Jones), a leader in the premium soda category and known for its unique branding and innovative marketing, today announced a deal with Walmart that authorizes Jones to retail its products in Walmart’s approximately 3,800 U.S.-based stores. The deal increases Jones’ total retail outlet distribution by nearly 10%, and will make the product easily accessible to millions of new consumers.

“The primary complaint through our customer service feedback is that people can’t find Jones Soda near them,” said Jones CEO William Meissner. “The Walmart deal allows for another one of America’s premier retailers to offer Jones. Walmart greatly expands our distribution footprint and truly makes our product accessible to everyone, which is something the Jones Soda brand has always stood for. Now, almost anyone, anywhere in the U.S. can seek out a nearby store or stumble upon our product and purchase it on the spot. We are incredibly energized by the growth potential this Walmart expansion brings.”

Under the authorization, Jones has been given three shelf facings for a custom assorted 6-pack of Jones Pure Cane Soda®. The 6-pack will include two bottles each of some of Jones’ most popular flavors – Green Apple, Berry Lemonade and Cream Soda – enabling fans and new consumers the opportunity to sample a variety of flavors at once.

The Walmart authorization was granted following a successful test of the above named 6-packs in 750 stores. Walmart officially authorized Jones Soda products on May 3rd and began rolling it out on shelves, with plans to have product in nearly all U.S. stores by the end of May.

For more company and product information, visit www.jonessoda.com.

About Jones Soda Co.

Headquartered in Seattle, Washington, Jones Soda Co.(R) markets and distributes premium beverages under the Jones Soda, Jones Pure Cane Soda(R), Jones 24C(R), Jones GABA(R), and Whoopass Energy Drink(R) brands and sells through its distribution network in markets primarily across North America. A leader in the premium soda category, Jones is known for its variety of flavors and innovative labeling technique that incorporates always-changing photos sent in from its consumers. Jones Soda is sold through traditional beverage retailers. For more information visit www.jonessoda.com, www.myjones.com, and www.jonesGABA.com.

Forward-Looking Statements Disclosure

Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding our efforts to explore strategic alternatives. Forward-looking statements include all passages containing words such as “aims,” “anticipates,” “becoming,” “believes,” “continue,” “estimates,” “expects,” “future,” “intends,” “plans,” “predicts,” “projects,” “targets,” or “upcoming”. Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of the management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect Jones Soda’s actual results include, among others, its inability to achieve levels of revenue and cost reductions that are adequate to support its capital and operating requirements in order to continue as a going concern; its inability to generate sufficient cash flow from operations, or to obtain funds through additional financing or other strategic alternatives, to support its business plan; the impact of the global economic crisis, which has continued to have a greater than expected impact on the Company’s business; its inability to increase points of distribution for its products or to successfully innovate new products and product extensions; its inability to establish distribution arrangements with distributors, retailers or national retail accounts; its inability to maintain relationships with its co-packers; its inability to maintain a consistent and cost-effective supply of raw materials; its inability to receive returns on its trade spending and slotting fee expenditures; its inability to maintain brand image and product quality; its inability to protect its intellectual property; the impact of current and future litigation; and its inability to develop new products to satisfy customer preferences and the impact of intense competition from other beverage suppliers. More information about factors that potentially could affect Jones Soda’s financial results is included in Jones Soda’s most recent annual report on Form 10-K and in the Company’s quarterly reports on Form 10-Q filed with the Securities and Exchange Commission in 2010. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, Jones Soda undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.