Does green tea reduce free radicals in the body?

Yes.

Teas, especially the least processed ones such as green and white teas, have been found to have the highest levels of natural anti-oxidants (catechins). Their preventive effect against cell damage is believed to be ten times that of  vitamin E.

(see US National Cancer Institute Tea and cancer prevention fact sheet at: http://www.cancer.gov/newscenter/pressreleases/tea).