JONES SODA CO.

JONES SODA CO.

March 10, 2005 13:43 ET

Jones Soda Co. Enters into Agreement with Kroger with Creation of Unique Jones Frozen Soda Pops


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: JONES SODA

TSX VENTURE SYMBOL: JSDA
TSX VENTURE SYMBOL: JSD

MARCH 10, 2005 - 13:43 ET

Jones Soda Co. Enters into Agreement with Kroger with
Creation of Unique Jones Frozen Soda Pops

SEATTLE--(CCNMatthews - Mar 10, 2005) -

Jones Soda Co. (the "Company" or "Jones Soda") (OTC:JSDA) (TSX
VENTURE:JSD), is pleased to announce that it has entered into a
licensing agreement with The Kroger Co. ("Kroger") to manufacture and
sell a newly created item, Jones Frozen Soda Pops, frozen novelties
based on popular Jones Soda flavors.

Under this agreement, Kroger will have a 3 year exclusive manufacturing
agreement and a one year exclusive distribution agreement to sell the
Jones Frozen Soda Pops throughout their over 2,500 stores.

The product line will initially consist of three Jones Soda flavors
including Green Apple, Berry Lemonade and Cherry, sold in a variety pack
of 12 - 1.75 Fluid Ounce frozen novelties (4 of each flavor). To view
the packaging of this product line, please visit www.jonessoda.com.

Similar to other licensing agreements at Jones, Kroger will manufacture
the product, purchasing concentrate from Jones Soda Co. and paying Jones
Soda Co. a licensing fee based on sales throughout the Kroger system.
Jones Frozen Soda Pops will begin to be available for sale in all Kroger
stores in April 2005.

"We are very excited to enter into a partnership with Kroger, creating a
new and exciting product based on our Company's popular Jones Soda
flavors," states Paul Weinstein, VP Sales - West for Jones Soda. "This
partnership with the second largest grocery retailer in the United
States validates Jones Soda as a national brand and creates a great
platform to broaden the distribution of other of Jones Soda Co.'s
products."

Headquartered in Cincinnati, Ohio, Kroger is one of the nation's largest
retail grocery chains. At the end of fiscal 2004, the Company operated
(either directly or through its subsidiaries) 2,532 supermarkets and
multi-department stores in 32 states under two dozen banners including

Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith's, Fry's,
Fry's Marketplace, Dillons, QFC and City Market. Kroger also operated
(either directly or through subsidiaries, franchise agreements, or
operating agreements) 795 convenience stores, 436 fine jewelry stores,
536 supermarket fuel centers and 42 food processing plants. For more
information about Kroger, please visit www.kroger.com.

Headquartered in Seattle, Washington, Jones Soda Co. manufactures its
Jones Soda, Jones Naturals, Jones Energy and Whoopass brands and sells
through its distribution network in select markets across North America.
A leader in the premium soda category, Jones is known for its innovative
labeling technique that incorporates always-changing photos sent in from
its consumers. Jones Soda is sold through traditional beverage retailers
and everywhere you'd never expect to find a soda.

This press release contains forward-looking statements and projections
concerning the Company's plans, strategies, expectations, predictions
and financial projections concerning the Company's future activities and
results of operations and other future events or conditions, and are
"forward-looking statements" as defined by the Private Securities
Litigation Reform Act of 1995. Words such as "expect," "believe,"
"anticipate," "may," "will," "plan," "intend," "estimate," "could," and
other similar expressions are intended to identify these forward-looking
statements. In particular, statements in this release regarding
potential growth opportunities, working capital and cash flow
management, operational and expense controls, future profitability and
results of operations are forward looking. Statements in this press
release, and elsewhere, that look forward in time or include anything
other than historical information involve risks and uncertainties that
may affect the Company's actual results of operations. These statements
by the Company are subject to certain risks, including, among others,
future demand for its products and brand, competition from other
businesses providing similar products, the ability to maintain
profitability and control expenses and the Company's ability to
successfully execute its business strategy. These and other risks and
uncertainties are discussed in more detail in the Company's periodic
reports filed with the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended, which are available at the
SEC website at www.sec.gov.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy of the content of the information herein.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Jones Soda Co.
    Jennifer Cue, 206-624-3357
    jencue@jonessoda.com