Jones Soda Co. enters into an agreement with Pharma Foods International Co. LTD. of Kyoto, Japan; Mitsubishi Corporation of Tokyo, Japan; and Mitsubishi International Food Ingredients Inc. of Dublin, Ohio, that grants the company exclusive rights to use PHARMA GABA in beverage applications. PHARMA GABA is a naturally produced form of the amino acid gamma-aminobutyric acid, a key neurotransmitter in the human brain that exerts a number of anti-stress effects among other benefits. An extremely popular food ingredient in Japan, PHARMA GABA recently achieved GRAS (generally recognized as safe) status in the United States. According to Peter van Stolk, president and CEO, of Jones Soda, "Securing the rights to PHARMA GABA is the key step in our development of an entirely new type of Jones energy beverage." Jones Soda will be assisted in the development of the new energy beverage by Dr. Michael T. Murray, one of the world's leading authorities on natural food products. Rather than produce a stimulant effect like caffeine-containing energy beverages, PHARMA GABA is valued for its ability to promote mental focus. The new product line is expected to be available at select retail locations by winter 2007.