Vmoto opens second retail store in China

VMOTO OPENS SECOND RETAIL STORE IN CHINA

announcement 5 AUGUST 2013

Vmoto Limited ("Vmoto" or "the Company") is pleased to announce that it has officially opened its second Chinese retail store in Jurong City, Jiangsu Province. Jurong is located approximately 60 kilometres from Vmoto's manufacturing facility in Nanjing and, as at the end of 2012, had a residential population of over 620,000.

The fully fitted out retail store covers 100m2 and occupies a corner location, which provides excellent exposure to potential customers.

Mr George Hou, Vmoto's General Manager, commented: "The opening of Vmoto's second Chinese retail store has been welcomed by residents in Jurong and the proximity of Vmoto's manufacturing facilities to the city provides many strategic advantages to Vmoto, including the ability to launch Vmoto's latest products into the Chinese market quickly and to service and meet customer's demand more efficiently."

As announced on 4 June 2013, Vmoto has officially launched the first batch of six new models of electric two wheel vehicles in China, which have been developed to specifically target the Chinese market. These new models of electric two wheel vehicles will be available for sale in Vmoto's retail store in Jurong. In addition, Vmoto is currently developing additional models of electric two wheel vehicles to be launched into the Chinese market.

The Company is planning to open more Vmoto retail stores in China and is evaluating a number of potential locations including Zhengzhou, Henan Province, Quanzhou, Fujian Province, Shanghai, Haikou, Hainan Province and Wulumuqi, Xinjiang Province.

Charles Chen, Vmoto's Managing Director, commented: "The opening of Vmoto's second retail store in China is another step towards Vmoto gaining a stronger foothold in China and consolidating its strategic advantages to access the Chinese market, which is the largest electric two wheel vehicle market in the world. We are excited about the opportunities in the Chinese market and plan to continue expanding our presence in China."

In the past ten years, China has been the largest electric two wheel vehicle market in the world, making up the majority of all global electric two wheel vehicle sales. In 2012 across the industry, 30 million units of electric two wheel vehicles have been produced in China and it is estimated to increase to 40 million units in 2015 (Source: 2012-2015 China Electric Two Wheel Vehicle Industry Research Report, published 13 November 2012).

AUTHORISED BY:

Charles Chen

Managing Director

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About Vmoto

Vmoto is a global scooter 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" electric powered two wheel 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.