Cabvision litigation update

17 July 2012

Eco City Vehicles PLC

("ECV" or "the Group")

Cabvision litigation update

Eco City Vehicles PLC, the developer and supplier of eco-friendly commercial vehicles and the London licensed Mercedes Vito taxi, is pleased to announce the settlement of all outstanding claims against Cabvision Limited relating to the Cabvision litigation. On 13 July 2012 ECV and certain other Group companies entered into an agreement with a number of third parties which, together with a separate agreement concluded on 6 July 2012 with those who had claims against Cabvision Limited, bring about a full and final settlement of all outstanding claims against Cabvision Limited, ECV and the other Group companies. The performance of the terms of settlement (expected within 21 days) will remove all and any risk of claims against or liability of the Group under Section 51of the Senior Courts Act 1981 or otherwise.

This settlement does not involve any cost to the Group. The cash position of the Group however remains tight following the challenging conditions in 2011. The Group continues to maintain the full support of the Pension Scheme and its bank whilst continuing to consider other funding options.

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