Vmoto opens third retail store in China

VMOTO OPENS THIRD RETAIL STORE IN CHINA

announcement 19 AUGUST 2013

Vmoto Limited ("Vmoto" or "the Company") is pleased to announce that it has officially opened its third Chinese retail store in Lishui District, Nanjing. As at the end of 2012, Nanjing had a residential population of over 8 million.

The retail store covers 80m2 and occupies a corner location that has significant traffic flow, which management estimate will increase the exposure of Vmoto's brand. This retail store is located in the north east of Lishui District, Nanjing and is approximately 10 kilometres from Vmoto's manufacturing facility in Nanjing.

Mr George Hou, Vmoto's General Manager, commented: "With the launch of our own models and the opening of our first two retail stores and a third store close to our factory, Vmoto has received great interest and enquiries from customers and other electric two wheel vehicle distributors. Since Vmoto is an international brand focused on quality premium electric two wheel vehicles at affordable prices we continue to attract a growing number of customers and distributors to purchase and distribute Vmoto's products. The Company will continue to seek to leverage this advantage to fast-track development of Vmoto's distribution network in China."

Vmoto opened its first flagship retail store in China in June 2013 and its second retail store soon after. Since the opening of these retail stores, management is pleased to report that store sales have been very encouraging and exceeded expectations.

Charles Chen, Vmoto's Managing Director, commented: "The encouraging sales from our retail stores after opening and the significant interest in Vmoto's electric two wheel vehicle products has showed that there is demand for Vmoto's products in the China market. The Company will seek to expand in China through more of its own retail stores and continue to develop its distribution network nationally 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.

In order to take advantage of the significant interest shown in Vmoto's products in such a short time the Company will be participating in one of the largest electric two wheel vehicle exhibitions in China "Jiangsu Electric Two Wheel Vehicle Exhibition" to be held in Nanjing, China in October 2013. This is one of the most important events for Vmoto in 2013 as it is expected to offer significant exposure to customers, distributors, suppliers, manufacturers and other enterprises that are heavily involved in the electric two wheel vehicle market in China.

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.