VICTORY ELECTRONIC CIGARETTES CORPORATION INVESTS $20 MILLION BEHIND VAPESTICK® TO EXPAND THE BRAND IN THE UNITED KINGDOM AND WESTERN EUROPE

News Release 4/2/2014

VICTORY ELECTRONIC CIGARETTES CORPORATION INVESTS $20 MILLION BEHIND VAPESTICK® TO EXPAND THE BRAND IN THE UNITED KINGDOM AND WESTERN EUROPE

  • $20 million fully integrated marketing and sales campaign kicks off in April with radio, television, outdoor, digital, and in-store marketing activities
  • Cutting-edge UK-based agencies including Heavenly, Arena Media, and Frank PR earned the VAPESTICK® account in recent creative and competitive review

SPRING LAKE, MICHIGAN, April 2, 2014 – Victory Electronic Cigarettes Corporation (OTCQB: ECIG), today announced that its VAPESTICK® brand, one of Europe’s premier electronic cigarette brands, kicked off a $20 million marketing campaign today to expand the brand’s awareness and loyalty with consumers in the fast-growing UK electronic cigarette market. The group conducted a highly competitive creative review amongst a number of major European agencies to support their efforts, and recently awarded the account to Heavenly, Arena Media, and Frank PR.

The new $20 million plus marketing and sales campaign spans multiple communication mediums including in-store marketing and merchandising, television and radio, outdoor, digital and social media, and experiential and event marketing that will be implemented throughout the UK throughout 2014. The investment from Victory behind VAPESTICK®, ranks as one of the largest investments in the fast growing E-cig category in the UK, and supports numerous recent retail account wins with leading food and drug mass, and convenience retailers across the UK and Europe.

The e-cigarette industry has grown rapidly in consumer popularity over the past two years, attracting an estimated 1.5 million “vapers” now in the UK alone. Victory Electronic Cigarettes Corporation purchased 100% interest in VAPESTICK® in January, historically a highly successful, but undercapitalized business in the UK. Since that time, VAPESTICK® has been expanding aggressively earning major account distribution wins in the UK, Netherlands, Portugal, and Russia. VAPESTICK® is an innovative lifestyle brand aligned with the fashion and music sectors. The upcoming campaign aims to further enhance the brand’s already commanding position.

The Heavenly Agency has been awarded the VAPESTICK® account and will oversee the creative development and execution behind the brand. The fully integrated marketing campaign builds on the brands music, fashion, and lifestyle image roots, and reminds consumers that “Smoking is so last season.”

Frank PR has been appointed to guide the brand’s experiential and event marketing as the VAPESTICK® brand connects with consumer’s throughout the UK in high-profile loyalty impacting events. Frank PR will also lead the brand’s public relations activities promoting brand awareness of the VAPESTICK® products currently sold in Harrods Pharmacy, Tesco Pharmacies, WHSmith (Travel) and Costco, as well as thousands of independent UK retailers.

Arena Media, a major agency spanning 60 countries, has been awarded the digital and social media, and will also be handling media planning and buying for the group. Speaking about the appointment, Pedro Avery, CEO of Arena, commented: “We are delighted to have been awarded the VAPESTICK® account, to look after their media planning and buying. We are all very excited to be working with this tremendous brand and look forward to helping them drive sales success and brand awareness as this category continues to grow at a rapid pace.”

Andrew Bloch, Frank PR’s Founder & Group Managing Director, commented: “Electronic cigarettes have quickly become the world’s fastest growing industry – resulting in an extremely exciting space to be working within. We look forward to growing VAPESTICK®’s brand awareness in the consumer market and making it one of the best known brands in the UK through some stand out PR activity.”

Steve Owen, Creative Director of Heavenly, commented: “Heavenly is delighted to have the opportunity to help VAPESTICK® in the next stage of their brand development. This is an exciting time for the company and we are really looking forward to helping create a stand-out brand within the sector.”

Michael Clapper, President-International at Victory Electronic Cigarettes Corporation and co-founder of VAPESTICK® added: “All three agencies really impressed us with their grasp of this dynamic market, with a fresh and creative take on where the VAPESTICK® brand should be headed as a market leader. We are delighted to have Frank, Arena, and Heavenly on board, and look forward to working with them to help drive the continued success and growth of VAPESTICK®.”

About VAPESTICK®

VAPESTICK® is a wholly owned subsidiary of Victory Electronic Cigarettes Corporation, and one of Europe’s leading brands of premium e-cigarettes. With its distinctive black and chrome style designs and signature blue light tips, VAPESTICK® has grown to become one of the most recognized brands in the market and sells its products both online at vapestick.co.uk and through thousands of retail outlets across UK and Europe, including Tesco, Costco, Harrods, Argos and WHSmith. VAPESTICK® was recently ranked number one in batch consistency and product delivery among the UK’s leading brands in an independent study initiated by the UK’s Department of Health. The business is also a founding board member of ECITA (the European Electronic Cigarette Industry Trade Association).

About Electronic Cigarettes International Group, Ltd. (ECIG)

The Electronic Cigarettes International Group, Ltd. (ECIG) is dedicated to empowering smokers to choose an alternative to traditional cigarettes.  ECIG is one of the leading electronic cigarette companies in the world, and owns the trademarks VAPESTICK®, FIN®, Victory®, GreenStix®, VIP® and others.  The Company owns multiple subsidiary companies and has operations in North America, Latin America, Western Europe, and Asia.  ECIG offers consumers a full product portfolio that incorporates the highest quality and latest technology, and has been rated as superior in real tobacco taste amongst major brands.   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 of the Private Securities Litigation Reform Act of 1995, 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 contact:

Joan Lauer
Investor Relations
Electronic Cigarettes International Group, Ltd.
Tel: 616-384-3496