$VPOR Releases Letter to Shareholders

DAVIE, FL–(Marketwired – Apr 15, 2015) – Vapor Group, Inc. (OTCQB: VPOR), (the “Company” or “Vapor Group”), today released the following letter to shareholders from its President and CEO, Dror Svorai.

Dear Shareholders:

First, for the full year 2014, Vapor Group did about $4 1/2 million in revenues (actual $4,481,839), an increase of about $2.5 million (actual $2,490,816), or 125% over calendar 2013 sales of $2 million (actual $1,991,023).

For the first quarter of 2015 preliminary revenue results show us well ahead of the same quarter of last year. Final results will be released in our forthcoming quarterly report to be filed before mid-May.

The results of the first quarter also include revenues from our continued expansion of distribution in Colorado and throughout the country for our e-cigarette, e-liquid and particularly our vaporizer product lines.

Important, we have also entered into an agreement with a major e-cigarette manufacturer in China who we will supply continuously with our proprietary “Made in the USA” e-liquids. in a complete range of flavors for resale internationally. We were chosen by them because of the high quality of our e-liquids, their excellent taste and range of flavors. (No one can offer anything similar.) In fact, we have already begun to export bulk shipments of e-liquid to China. We believe over time that this agreement will generate significant export revenues for us and further drive the growth of our e-liquid business.

Lastly, we continue to reduce our overall debt burden. As we stated in our 10-K of March 31, 2015 for the period ended December 31, 2014, we have reduced our debt by almost $2 million ($1,958,229) through prepayments and debt conversions to equity in the first quarter of 2015. As a result, the remaining outstanding balance of “Convertible notes payable” and “Accrued Interest” on our Consolidated Balance Sheet would be reduced to $1,441,314 from $3,399,543 which is what it was on December 31, 2014, that is a reduction of 58%. That said, we remain determined to eliminate all such debt by the end of June.

Please remember that 2014 was our first year as a public company and one in which we needed to invest in inventory heavily, drive sales, establish national branding and distribution, and demonstrate that we are here for the long term. We believe that in 2014 we demonstrated significant achievement in all these areas. For 2015, we are committed to continue to grow revenues in order to drive shareholder value.

In the coming months I look forward to providing you with further updates on the progress that we is making.

Very truly yours,

Dror Svorai
President and CEO
Vapor Group, Inc.

About Vapor Group, Inc.
Vapor Group, Inc., www.vaporgroup.com, is in the business of designing, developing, manufacturing and marketing high quality, vaporizers and e-cigarette brands which use state-of-the-art electronic technology and specially formulated, “Made in the USA” e-liquids, with and without nicotine. It offers a range of products with unique e-liquid flavors that is unmatched in our industry. Its products are marketed under the Vapor Group, Total Vapor, Vapor 123, and Vapor Products brands. It sells nationwide through distributors, wholesalers and directly to consumers through its own websites and direct response advertising. In addition, Vapor Group owns and operates VGR Media, Inc., www.vgr-media.com, a full service interactive advertising agency, offering customized performance marketing solutions to help marketers of consumer products acquire new customers and maximize their return on investment. VGR Media operates in the U.S. and internationally.

Vapor Group is committed to providing e-cigarettes that are convenient and economical to use, safer and healthier than traditional smoking, and which provide a flavorful, enjoyable smoking experience.

Vapor Group is managed by a highly experienced team of executives committed to responsible business policies and practices, including the marketing of our products only to those eighteen years of age or older, not making or avoiding claims about our product health benefits, and fulfilling the requirements of all applicable laws and regulations.

Safe Harbor Statement:
This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Certain statements set forth in this press release constitute “forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “estimate”, “project”, “intend”, “forecast”, “anticipate”, “plan”, “planning”, “expect”, “believe”, “will likely”, “should”, “could”, “would”, “may” or words or expressions of similar meaning. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company’s ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company’s limited operating history, the limited financial resources, domestic or global economic conditions — activities of competitors and the presence of new or additional competition and conditions of equity markets.