Trading update

TRADING UPDATE

announcement 17 JULY 2013

HIGHLIGHTS

·; Vmoto makes maiden monthly profit in June 2013

·; Chinese demand for Vmoto products exceeding expectations

·; At least eight new models for Chinese domestic market being developed to keep up with demand

·; On current interest and orders, the Company anticipates making a net profit after tax for the financial year to 31 December of A$300k-A$600k

Vmoto Limited ("Vmoto" or "the Company") is pleased to announce that it has delivered a profitable month in June 2013. The net profit after tax figure (unaudited) was approximately A$80,000 and marks a significant turning point in the Company's history.

The profitable June month follows the successful launch of six of Vmoto's own models into China, the opening of its flagship shop in Lishui District, Nanjing and the ramping up of PowerEagle's strategic cooperation agreement.

The level of interest from distributors and customers in Vmoto's products has been such that the Company has already started fast tracking the development of at least eight more Vmoto models for the Chinese domestic market. This is expected to take three to six months and, once completed, will open up even more opportunities for the Company to increase production and distribution throughout China. In order to service these opportunities the Company is reviewing sites in various regions of China with a view to opening more of its own stores.

With the discussions senior management are having in China and based on the demand shown to date, the Company anticipates that it will make its maiden annual profit for the financial year ending 31 December 2013 of between A$300,000 and A$600,000.

Charles Chen, Vmoto's Managing Director, commented: "We are delighted to have produced a profitable month in June 2013 for Vmoto and its shareholders and look forward to reporting a maiden profit come the year end. The interest in our Chinese electric products, in less than two months since their launch, has exceeded our expectations and reaffirms the importance of Chinese market for electric scooters, where 40 million units are expected to be produced in 2015, making it by far the biggest and fastest growing in the world. With even more of our models soon to be on the roads, we are confident that Vmoto can increase production levels even more."

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.