TAX.L Regulatory News (TAX)

20 July 2012

Eco City Vehicles PLC

("ECV")

Re: One80 Limited

On 16 November 2010 ECV announced its intention to acquire further shares in the capital of One80 Limited (the "One80 Stake"), which owns the intellectual property rights to the rear wheel steer technology used on the Mercedes Vito taxi. The consideration for the One80 Stake was stated to be £640,000 in cash, which was paid on completion of the acquisition, and up to 12,800,000 shares in the capital of ECV ("ECV Shares") (representing 3.8% of ECV's current issued share capital). The ECV Shares were to be issued following completion of the acquisition of the One80 Stake subject to the satisfaction of certain conditions and potential downwards adjustment following a statutory valuation and report under Section 593 of the Companies Act 2006 (the "Valuation Report").

As of the date of this announcement the Valuation Report has not been prepared and no ECV Shares have been issued to the seller. There is also additional documentation which, if valid and effective, could compensate the seller for any downward adjustment required by the terms of the share purchase agreement as regards any remaining consideration payable for the One80 Stake. ECV is investigating and reviewing its position in relation to the above matters and will release a further update when they are resolved.

In that context, ECV notes that note 12 to ECV's annual accounts for the year ended 31 December 2011 contains a mathematical error and that the reference to 1,620,000 ECV Shares should have been a reference to 6,480,000 ECV Shares. However, as stated above the issue of further consideration is under review, pending the outcome of which review no reliance should be placed on note 12 to the annual accounts for the year ended 31 December 2011 or any other previous statement regarding such consideration.

ECV retains voting control in relation to, and the beneficial interest in, the One80 Stake.

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