Trading Update

MARKET UPDATE

announcement 21 JANUARY 2013

Vmoto Limited ("Vmoto" or "the Company") is pleased to provide the following market update on its progress and activities in relation to its significant OEM contract with PowerEagle and E-Tropolis as well as a new distributor in the Netherlands.

PROGRESS OF POWEREAGLE CONTRACT

The Company is pleased to report that the units produced and delivered to PowerEagle in 2012 was ahead of PowerEagle's forecasted 6,000 units for 2012. The Company produced approximately 7,000 units of PowerEagle electric scooters in 2012 and, as at 31 December 2012, had delivered approximately 6,300 units of PowerEagle electric scooters to the customer.

The Company put on double shifts to ensure production targets were beaten and it thanks the efforts of its management and production staff for achieving this.

In addition, the Company has installed and fitted new assembly lines in the manufacturing floor space of its Stage 2 Manufacturing Facility as larger space and more assembly lines are required to meet the increasing production units for PowerEagle electric scooters which PowerEagle forecast to be 42,000 units in 2013.

The production of the Company's E-Max series of electric powered scooters continues in our Stage 1 Manufacturing Facility and forecast production figures remain unchanged.

PROGRESS OF E-TROPOLIS CONTRACT

Manufacture of the E-Tropolis electric scooters remains on course and should commence by the end of March 2013 as scheduled.

FINANCIAL PERFORMANCE

As a result of the Company's delivery on its production estimates, the board expects that the Company's financial performance for the six months to 31 December 2012 will be in line with market expectations. The Company will announce audited results for the six months to 31 December 2012 by the end of March 2013.

Charles Chen, Managing Director of Vmoto, commented: "The fact that we have achieved and beaten ambitious production figures despite the logistical challenges of moving the entire production line to our factory in a short time frame is a great testament to our abilities as a company and the team at the factory. We have also demonstrated to Power Eagle and other potential customers that we can be relied upon to produce large quantities of units to order and on time. The impact this has on our financial performance is obviously pleasing and demonstrates our ability to monetise our outstanding facilities. This bodes well for the group as we look to ramp up production even more in 2013."

New Netherlands Distributor

The Company is also pleased to announce that it has secured B.V Nimag as its new exclusive distributor in Netherlands.

B.V Nimag (www.nimag.nl) is a Netherlands trading company which is the importer of Suzuki (cars, motorcycles, marine) and sports cars and began the distribution of electric scooters in 2011. B.V Nimag is part of the Louwman Group which is primarily an automotive business (Lexus and Toyota importer for Netherlands) and has over 2,200 employees across Europe, an annual turnover of €2bn and was founded in 1923. B.V Nimag markets its electric scooters business as "Nimoto" (www.nimoto.nl) and branded electric scooters imported from Vmoto as "Nimoto Pro Powered by E-Max".

Robert Landman, General Manager B.V Nimag, commented: "We are very proud of this important addition to our successful Nimoto model range. With Nimoto Pro electric scooters, we have top quality products which are demanded by both consumer and business markets. Also we see many opportunities for the electric scooter with regard to mobility programs and leasing. The market for electric mobility is increasing and in particular the market for electric scooters has enormous potential. The Nimoto dealer network will be expanded to over 100 outlets in the Netherlands. "

The Nimoto Pro models, identified by the orange Nimoto logo, are robust and easy to use and suitable for both consumer and business use. 

Vmoto welcomes B.V Nimag as its distributor in Netherlands and look forward to working with B.V Nimag closely to develop the Netherlands market in the many years to come.

AUTHORISED BY:

Charles Chen

Managing Director

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About Vmoto

Vmoto is a global scooter manufacturing and distribution group and has been listed on the Australian Stock Exchange (ASX) since October 2001 and the AIM Market of the London Stock Exchange since November 2012. The Company specialises in high quality "green" electric powered scooters and manufactures a range of western designed electric (and some petrol) scooters from its low cost manufacturing facilities in Nanjing, China, marketed in Europe through its operation in Barcelona, Spain 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.