Trading Update

TRADING UPDATE

announcement 21 AUGUST 2013

HIGHLIGHTS

· Second consecutive profitable month in July 2013

· PowerEagle electric scooter production on track for 42,000 units to end of 2013, 24,600 units produced to end of July 2013

· Three Vmoto retail stores opened in China within two months - positive retail trading, roll out of further stores planned

· Developments of 4 new models for Chinese market on track

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

Vmoto Limited ("Vmoto" or "the Company") is pleased to announce that it has delivered a profitable month in July 2013, with a net profit after tax figure (unaudited) of approximately A$40,000. This follows the Company's maiden monthly profit of approximately A$80,000 (unaudited) in June 2013 and further demonstrates the significant interest being generated in China for the Company's own models of electric vehicles, sales through Chinese retail stores and manufacturing capabilities with space for third parties. The lower July profit, when compared to June, is attributable to one off expenses incurred in opening additional Chinese retail stores, from which the Company expects to generate future revenue and profit as they become more established.

As previously announced, the Company 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 under the Strategic Cooperation Agreement with 2,500 units delivered in July. The Company is also progressing the fast track development of 4 more of Vmoto's own models, to add to the 6 models currently being sold into the Chinese domestic market.

The Company is also pleased to report that, following its successful launch into the Chinese market, it has been approached by a number of parties operating in the electric vehicle sector for collaborations or joint ventures. One such approach culminated in the recent delivery of two trial four-wheel electric cleaning vehicles to the district government in Jianye District, Nanjing, as announced on 13 August 2013. Discussions with such groups are ongoing.

Charles Chen, Vmoto's Managing Director, commented: "We are pleased to have followed up our June profit with one in July and are confident of this continuing as we roll out more stores and increase our exposure into the Chinese market. Discussions we are having with other electric vehicle groups are also exciting and we look forward to progressing these to see if any agreements can be secured 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.