TAX.L Regulatory News (TAX)

19 September 2014

Eco City Vehicles PLC

("ECV" or "the Group")

Share Suspension and Trading Update

Eco City Vehicles PLC ("ECV"), the sole distributor of the licensed Mercedes Vito taxi, provides the following update regarding One80 Limited ("One80").

One80 is the Group's 76.6% subsidiary, which owns the intellectual property rights to the rear wheel steer technology and other design rights used on the Mercedes Vito taxi.

In September 2012 ECV acquired the benefit of a short term loan made to One80 by Cabvision Network Limited. This loan has now been repaid and the security over One80 assets has been satisfied.

As previously announced on 12 August production of Mercedes Vito taxis remains on hold owing to existing stock levels of completed vehicles.

With a lack of production revenues and, also previously announced the impending legal case against One80 by the non-exclusive licence holder the directors of One80 have notified its shareholders of its intention to appoint an administrator for One80.

As previously announced the Group continues to experience challenging trading conditions requiring ECV to seek additional funding. ECV is in negotiation with a potential funder that may or may not lead to additional funds.

With the potential administration of One80 and the resulting contractual frustrations encountered with third parties in executing disposals under the Group's strategic review, together with the continuing challenging trading conditions there is uncertainty as to the Group's financial position and prospects, as a consequence, ECV has requested a suspension of its shares pending further evaluation of its position and future structure.

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