Trading update

TRADING UPDATE

announcement 8 OCTOBER 2013

HIGHLIGHTS

· Profitable month in August 2013

· PowerEagle electric scooter production on track for 42,000 units to end of 2013, 29,295 units produced to end of August 2013

· Positive retail trading from Vmoto's first four stores - 1,198 units sold through Vmoto retail stores to end of August 2013, roll out of further stores still planned

· Total of 11 Vmoto models of electric two wheel vehicle now available in the Chinese domestic market

· Company being actively approached for new business ventures and joint venture opportunities in the electric vehicle sector - discussions ongoing

Vmoto Limited ("Vmoto" or the "Company") is pleased to announce that it has delivered a profitable month in August 2013, with a net profit after tax figure (unaudited) of approximately A$121,000. This is the Company's best trading month since its maiden profit in June 2013 and further demonstrates the significant interest being generated in China for the Company's own models of electric vehicles through Vmoto's retail stores, other retail dealers and manufacturing capabilities for third parties.

As previously announced, the Company still anticipates that it will make a maiden annual profit for the financial year ending 31 December 2013 of between A$300,000 and A$600,000.

Production of PowerEagle electric scooters remains on track for 42,000 units to end of 2013 under the Strategic Cooperation Agreement and 29,295 units have been produced to end of August 2013.

As announced on 3 September 2013 the Company has launched a further five new Vmoto branded electric two wheel vehicle models for the Chinese domestic market (taking its total to 11 models) and as at the end of August 2013 had sold 1,198 units of its own models through Vmoto's four retail stores opened to date.

The Company continues to be approached by a number of parties operating in the electric vehicle sector for collaborations or joint ventures. Discussions with such groups are ongoing.

Charles Chen, Vmoto's Managing Director, commented: "The Vmoto team are continuing to work to execute its strategies to expand further in China, roll out more stores and increase our exposure into the Chinese market. The cooperation opportunities received by the Company to date are promising and the Company is liaising closely with a number of groups to evaluate the best business opportunities and to add long term value to the Company."

AUTHORISED BY:

Charles Chen

Managing Director

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About Vmoto

Vmoto is a global two wheel vehicle manufacturing and distribution group and is listed on the Australian Securities Exchange (ASX) and on the AIM market of the London Stock Exchange. The Company specialises in high quality "green" two wheel electric powered vehicles and manufactures a range of western designed electric (and some petrol) two wheel vehicles from its low cost manufacturing facilities in Nanjing, China, marketed in Europe through its operation in Bremen, Germany and marketed outside Europe through its operations in Australia. 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.