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Gilla Brands Enter France Though E-Liquid Dispensing Kiosks

NEW YORK, NEW YORK--(Marketwired - Sep 28, 2016) - Gilla Inc. ("Gilla" or the "Company") (GLLA), the fast-growing designer, manufacturer and marketer of E-liquid for vaporizers, announced today that the Company has signed a brand distribution agreement with a France-based distributor of E-liquids (the "Distributor") which owns and operates a regulatory compliant network of more than 60 E-liquid dispensing kiosks in France. Similar in concept to a fountain soda pop machine, this revolutionary new kiosk will allow consumers to fill their own store purchased E-liquid bottles on the premises and choose from a selection of brands that are served in a zero nicotine format. A neutral flavored regulatory compliant nicotine enhancer will also be available at the store.

Gilla granted the Distributor one-year exclusive distribution rights for the Company's Coil Glaze and Craft Vapes brands for this type of E-liquid dispensing machine in Europe and the UK. It is expected that the Company's products will be available in as many as 30 kiosks in France located in vape shops and other retailers by the end of October 2016. The Company sells the product in bulk zero nicotine formats that are then added to the machines.

"It is a privilege for us to list the Coil Glaze and Craft Vapes brands within this innovative new network of dispensing kiosks that will provide Gilla with instant access to a large number of distribution points within the French market," stated J. Graham Simmonds, Chairman and CEO of Gilla. "This distribution relationship will also provide a significant marketing opportunity for our other brands and flavors through increased awareness of the Gilla portfolio to host retailers within the network."

About Gilla Inc.

Gilla Inc. manufactures, markets and distributes E-liquid, which is the liquid used in vaporizers, E-cigarettes, and other vaping hardware and accessories. E-liquid is heated by the atomizer to deliver the sensation of smoking. Gilla aims to be a global leader in the manufacturing and distribution of E-liquid for the vapor industry. The Company provides consumers with choice and quality across categories and price points. Gilla's product portfolio includes Coil Glaze, The Drip Factory, Surf Sauce, Siren, VaporLiq, Craft Vapes, Craft Clouds, Vape Warriors, Miss Pennysworth's Elixirs, The Mad Alchemist, Replicant and Crown E-liquid brands.

Forward-looking Statements

Note: This press release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Gilla Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company's ability to retain key management and employees; intense competition and the company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Gilla Inc. SEC filings. Gilla Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Gilla Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Gilla Inc.'s SEC filings.

For more information, please visit gilla.com.