Trading update

VMOTO CONTINUES TO GROW STRONGLY

ANNOUNCEMENT 8 December 2014

HIGHLIGHTS

· Continued strong growth in operations through to end of 2014, with further growth expected in 2015

· Best monthly profit to date in October with normalised net profit (excluding one off expenses and impairments) after tax of approximately A$537,000 (unaudited)

· Previous earnings guidance for the financial year ending 31 December 2014 of between A$2.5 million and A$3.0 million, anticipated to be at the higher end of this range

Vmoto Limited (ASX/AIM: VMT), the global scooter manufacturing and distribution group specialising in "green" electric powered two wheel vehicles, is pleased to provide the following market update ahead of the year ending 31 December 2014.

Commenting on the Company's performance, Charles Chen, Managing Director of Vmoto said: "As we head towards the end of 2014 we are very pleased with the progress Vmoto is making on several fronts, which will be reflected in our 2014 financial results. Domestic Chinese and International sales continue to increase, the latter encouragingly so where our margins are strongest and 2015 is shaping up to be another exciting year of growth for the Company."

TRADING UPDATE - GROWTH CONTINUES

The Company continues to grow earnings, with normalised net profit (excluding one off expenses and impairments) after tax generated for the month of October 2014 of approximately A$537,000 (unaudited). Encouragingly, this is Vmoto's best monthly profit to date, driven in part by increasing International sales where margins are higher than Chinese domestic sales, and highlights the positive growth path the Company is on.

On 22 September 2014, the Company announced the acquisition of the business assets of Haiyong Electric Technology Co, Ltd ("Haiyong"), a technology company focused on the production of controllers, a vital component of electric vehicle driving systems. The acquisition of Haiyong has successfully completed with manufacturing relocated to Vmoto's Nanjing manufacturing facility and full integration of Haiyong's operations within Vmoto. The first full month's trading in the facility has been positive and higher than management expectations.

With trading and orders for Vmoto's own branded units and Haiyong sales increasing, the Company is now confident that it will achieve annual normalised net profit for the 2014 financial year at the higher end of the earnings guidance provided in the September 2014 quarterly report where the Company stated that it anticipated making a normalised annual net profit (excluding one off expenses and impairments) of between A$2.5 million and A$3.0 million.

EXISTING AND NEW CUSTOMERS - KEY LONG TERM GROWTH DRIVERS

Further to the operational review in the September 2014 quarterly report, the Company provides the following key updates in relation to specific customers:

PowerEagle: During October 2014, Vmoto sold approximately 4,200 units of electric two wheel vehicle products to PowerEagle.

Denmark: In addition to the order placed in August as reported in the September 2014 quarterly report, the Company received further orders from its Denmark customer for two containers of Vmoto's electric two wheel vehicle products which it will deliver in January 2015. The Company delivered the two containers previously ordered in December 2014.

Czech Republic: Feedback from the Czech Republic customer indicates a strong intention to order two to three containers of Vmoto's electric two wheel vehicle products in December 2014.

Japan: The Company completed and delivered 50 units of its electric scooters in CKD form to its Japanese distributor.

Malaysia: Vmoto's Malaysian OEM customer placed a further order for 72 units of the Company's electric delivery scooters in CKD form. The products are under preparation with delivery expected in December 2014.

Mexico: Further to the successful evaluation of a sample order, the Company received orders from its Mexico customer for 45 units of Vmoto's electric two wheel vehicles to target the B2B and fast food delivery groups in Mexico.

Taiwan: The Company reached agreement with its Taiwanese customer to supply Vmoto's electric two wheel vehicle products for use in Taiwan. The Taiwanese customer has already established and set up its battery interchange stations at a number of cities in Taiwan and has been welcomed by the governments and users in Taiwan. The Company expects that the first order of Vmoto's electric two wheel vehicle products will be 300 units.

Vietnam: Vmoto completed and delivered 500 units of electric two wheel vehicles to its Vietnamese distributor. The distributor placed a further order for 2,000 units and the Company expects to receive the deposit in mid-December 2014 and deliver the products in February 2015.

2015 OUTLOOK

Senior management are working closely with existing customers in China and internationally for 2015 orders and the outlook for 2015 is already positive with similar sales growth trends to what the Company is currently experiencing expected to continue.

SITE VISITS BY INTERNATIONAL BROKERS, FUNDS MANAGERS, DISTRIBUTORS AND CUSTOMERS

The Company is pleased by the interest shown from Australian and UK brokers and fund managers who over the last few months have visited Vmoto's Nanjing manufacturing facilities at their own cost. Groups have been lead through an inspection of the offices, production lines, warehouse, staff accommodation, staff cafeteria and the new Vmoto Haiyong operations. Vmoto has also organised test rides of the Company's electric two wheel vehicles. The Company intends to facilitate further site visits as and when appropriate to increase capital market awareness of the Company. A number of distributors and customers from within China and around the world including Austria, Czech Republic and Vietnam have also recently visited Vmoto's Nanjing manufacturing facilities.

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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.