Growth in Asia and development of new model

VMOTO CONTINUES TO GROW IN ASIAAND DEVELOPS NEW ELECTRIC MODEL

announcement 23 APRIL 2014

HIGHLIGHTS

· Vietnam - Distribution agreement signed with Euro Ebike Company Limited, a company focused on selling "green" vehicles, with at least 1,200 units to be ordered by 31 August 2015

· Taiwan - Samples supplied to Kentfa Advanced Technology Corp, a company focused on distribution, research and development of electric vehicles and associated technologies

· New model electric two wheel vehicle - "Vmoto 1" - under development.

VIETNAM

Vmoto Limited (ASX/AIM: VMT) is pleased to announce that it has signed an exclusive distribution agreement with Euro Ebike Company Limited (Euro Ebike) to distribute, stock and market the company's Vmoto and E-Max range of electric scooter products in Vietnam. The initial contract is for a minimum of 1,200 units to be ordered by Euro Ebike by 31 August 2015.

Euro Ebike (www.euro-ebike.com) supplies green vehicles in Vietnam and Indochina. It owns international brands including "Hyundai E-Bike" and "Matra-e".

Vietnam's motorbike market is the fourth-largest in the world after China, India and Indonesia. Motorbikes are the most common means of transport in Vietnam, which has a population of approx. 90 million people. Around 37 million motorbikes are registered in the country, while the number of cars is only approximately 2 million (Source: Viet Nam News). As electric scooters become more popular and acceptable to Vietnamese consumers, this market presents a significant opportunity for Vmoto.

TAIWAN

Vmoto has recently supplied samples of its electric scooters to Kentfa Advanced Technology Corp (Kentfa) for evaluation and promotion in Taiwan. Kentfa owns and distributes the brands "Kentfa" and "Isuda".

Kentfa (www.kentfa.com.tw) was established in 2001 and focuses on distribution, research and development of electric vehicles and technologies. Kentfa has pioneered an Electric Vehicle Battery Exchange System that allows users of electric vehicles to change batteries at its stations, allowing users to get back on the road with fully charged batteries within minutes. Kentfa has built a number of Electric Vehicle Battery Exchange Stations in Kaohsiung and has signed an agreement with Taiwan's Department of Environmental Protection to build another 30 large scale Electric Vehicle Battery Exchange Stations in Kaohsiung.

As part of its evaluation of Vmoto's products, on 7 April 2014 Kentfa organised an electric motorbike test ride with the Taiwan Entrepreneur Association (Southern Chapter) using Vmoto's electric two wheel vehicles. Feedback from the attendees was very positive. In addition, Kentfa exhibited Vmoto's electric two wheel vehicle products at the Taipei International Electric Vehicles Exhibition held on 9-12 April 2014 and again received positive feedback.

Taiwan has a population of approx. 23.4 million people, and currently has 11 million scooters on the road (Source: Wards Auto). Like Vietnam, the Taiwanese market represents an exciting new sales opportunity for Vmoto outside of mainland China.

NEW PRODUCT UNDER DEVELOPMENT - Vmoto 1

Vmoto is currently developing a new model of electric two wheel vehicle to be named "Vmoto 1".

Once fully developed and tested, the new Vmoto 1 electric two wheel vehicle will have a super light aluminium alloy frame with a total weight of 48kg. One of the most important features of Vmoto 1 is that its structure can be folded in 30 seconds, which makes it very portable to store at home or the workplace. Vmoto 1 will also be able to be plugged in to an Apple iPhone to play music or use Apple's iPhone Global Positioning System.

Charles Chen, Managing Director of Vmoto, commented: "The new Vmoto 1 electric two wheel vehicle is a natural evolution of the Company's existing models, increasing our product range and broadening the appeal of our products for distributors and customers. The design of Vmoto 1 is very modern and fashionable. In addition, the new model's price will be attractive to distributors and customers. We are confident that the Vmoto 1 will generate significant interest in both the domestic Chinese and international markets."

For photos of the Vmoto-1 prototype please visit the Company's website: www.vmoto.com

For further enquiries, please contact:

About Vmoto

Vmoto Limited (ASX/AIM: VMT) is a global scooter manufacturing and distribution group. The Company specialises in high quality "green" electric powered two wheel vehicles and manufactures a range of western designed electric scooters from its low cost manufacturing facilities in Nanjing, China. Vmoto combines low cost Chinese manufacturing capabilities with European design. The group operates through two primary brands: Vmoto (aimed at the value market in Asia) and E-Max (targeting the Western markets, with a premium end product). As well as operating under its own brands, the Company also sells to a number of customers on an original equipment manufacturer ("OEM") basis.