• Expands ECIG’s distribution across seven countries in South East and Central Europe
  • Enhances TDR’s leading portfolio offerings to customers with value-enhancing products in a high growth segment

GRAND RAPIDS, MICHIGAN, December 10, 2014 – Electronic Cigarettes International Group, Ltd. (OTCBB: ECIG), today announced that it has signed a memorandum of understanding with TDR, the leading independent tobacco company in South East Europe, including a 60% market share in Croatia. The memorandum of understanding defines the terms for exclusive distribution of ECIG’s brands across TDR’s territories, with a definitive agreement and product launch expected in the first quarter of 2015.

TDR, part of Adris group, a holding company with annual revenue of $1 billion, is one of the largest tobacco companies in South East Europe. TDR markets its leading brands of Ronhill®, Walter Wolf® and York® across Eastern, Central and Western Europe and the Middle East. TDR is a vertically integrated organization consisting of five companies including Hrvatski Duhani, the leading buyer, packer and dealer of Virginia and Burley tobacco in Croatia; iNovine, a network of over 590 retail stores in Croatia and Bosnia and Herzegovina; Istragrafika, the leading producer and exporter of commercial packaging in Croatia; and Adista, TDR’s tobacco distribution companies in Croatia and Bosnia and Herzegovina. TDR also operates branch offices in Croatia, Bosnia and Herzegovina, Germany, Kosovo, Macedonia, Montenegro, Serbia, and Slovenia. Each company has a distinct role in the TDR’s value chain, from tobacco growing and processing to production, distribution and retail support for tobacco products.

Mato Zadro, Chief Executive Officer of TDR, said, “We are very excited about our partnership with ECIG. We have the strongest tobacco business in the region, and partnering with the leader in the e-cig category will enable us to accelerate growth and provide our customers the leading products in this new market segment.  We are convinced that electronic cigarettes will be a very significant business, and believe that both companies will benefit greatly by leveraging our combined product and distribution strengths.”

Brent Willis, Chairman and Chief Executive Officer of ECIG stated, “TDR is a great strategic partner with an outstanding leadership team. We are extremely impressed by their tremendous success and experience in the tobacco industry throughout South East Europe and other markets. We are very excited about building the electronic cigarette business with them in a very attractive and high growth region.”

About Electronic Cigarettes International Group, Ltd. (ECIG)

Electronic Cigarettes International Group, Ltd. (ECIG) is dedicated to providing a compelling alternative relative to traditional cigarettes for the more than 1 billion current smokers around the world. ECIG is a fast growing independent electronic cigarette company, and owns the trademarks VAPESTICK®, FIN®, Victory®, GreenStix®, VIP® and others. The Company owns multiple subsidiary companies and has operations in North America, and Western Europe. ECIG offers consumers a full product portfolio that incorporates quality and the latest technology.   The Company’s website is www.ecig.co.

Safe Harbor Disclosure

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are any statement reflecting management’s current expectations regarding future results of operations, economic performance, financial condition and achievements of ECIG, including statements regarding ECIG’s expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue to materialize consistent with recent trends. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include: ECIG’s reliance on additional financing, ECIG’s profitability and financial health, risks associated with ECIG’s products, including that they may pose a health risk; governmental regulations may impact ECIG’s business; the market or consumers may not accept ECIG’s products; ECIG relies on a single class of products; existing or pending patents may affect ECIG’s business; and other factors disclosed in the Company’s filings with the Securities and Exchange Commission. Unless required by applicable law, ECIG undertakes no obligation to update or revise any forward-looking statements.

For investor inquiries please call:

Brandi E. Piacente

The Piacente Group, Inc.

Tel: 212-481-2050 ext. 402

Email: ecig@thepiacentegroup.com