The 18-year-old University of Georgia freshman lost to the 18-year-old Lee of New Zealand, 3 and 2. Lee birdied the third hole and never trailed. Reed trimmed Lee's lead to 1-up with a birdie at the par-4 13th. Lee responded with birdie at No. 15 and par at No. 16 to close out the match.
In the other semifinal, Drew Kittleson defeated Adam Mitchell, Reed's Bulldog teammate, 4 and 2.
Kittleson and Lee, who advance to Sunday's 36-hole final, qualify for the 2009 Masters Tournament.