Update

 23 September 2014

Eco City Vehicles PLC

("ECV" or "the Group")

Termination of Financing and Trading Arrangements with Mercedes-Benz

Eco City Vehicles PLC, the supplier of the licensed Mercedes Vito taxi, provides the following update regarding the financing and trading arrangements of the Company's wholly owned subsidiary, KPM UK Taxis Plc ("KPM"), with Mercedes-Benz.

Mercedes-Benz has informed KPM that it is terminating its stocking facilities and trading agreements with immediate effect. The Directors are evaluating the Company's options following this development.