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Vape Holdings Provides Corporate Update

Streamlined Business and Reduced Expenses; Puffco Collaboration Portable Vaporizer Pen Expected in December; New Hive Ceramic Products to be Released by End of 2015

CHATSWORTH, CA / ACCESSWIRE / October 8, 2015 / VAPE Holdings, Inc. (VAPE) (the "Company" or "VAPE"), a holding company focused on providing healthy, efficient, and sustainable vaporization products, today announced a corporate update and message from Kyle Tracey, Chief Executive Officer of Vape Holdings.

Recent Business Highlights:

- Streamlined business operations
- Reduced monthly personnel compensation expenditures by 70%
- Puffco collaboration for new breakthrough portable vaporizer pen is on schedule for a December release
- Hive Ceramics has several new products nearing roll-out

During the past few months, Vape Holdings has streamlined its business operations in order to focus on near-term growth opportunities, reorganize business segments and reduce operating losses. The focus going forward is Hive Ceramics, Betterchem, Nouveau and new opportunities in eLiquids. Vape has eliminated Offset, re-worked Hive Supply to fewer but more lucrative products and re-focused its business away from management consulting in the cannabis industry due to cash flow constraints and regulatory risks. The end result of these business changes has led to a reduction in management, staff and overhead expenses.

Vape's monthly personnel compensation expenditures have been reduced by approximately 70% by eliminating business development consultants, reducing headcount and employee salaries, and partially accruing officer salaries. Additionally, as of September 29, $226,590 of convertible notes have been converted to common shares, resulting in a total number of shares outstanding of the Company's common stock of 18,347,699. The Company believes it has enough cash on hand now to begin large scale distribution on a wide range of nee designs and materials.

Vape's collaboration with Puffco for a new breakthrough portable vaporizer pen is on schedule for a December release. It is in its second phase of prototype testing with final prototypes expected in November. HIVE's ceramic insert and Puffco's proprietary atomizer eliminates direct contact with the heating coil, thus solving the most eminent problem with current models while greatly improving the functionality and taste of the next-generation Puffco vaporizers. Puffco's business is growing rapidly every month and its Puffco Pro was named Best Vaporizer of 2015 by High Times Magazine. For more information, please visit: http://puffco.com.

Additionally, HIVE Ceramics has several new innovative products nearing roll-out:

- Omni nail collaboration - first orders out as of October 6
- Honey bucked with mothership - initial run in production. Expected delivery date in 60-90 days
- One piece club banger and carb cap with Quave - in production in 60-90 days.
- Silicon nitride ceramics - going into production within 2 weeks; expected delivery date in December

Kyle Tracey, Chief Executive Officer of Vape Holdings, stated, "Overall we are in a much better position today with our business operations, financial structure and overhead. I feel confident our new Hive Ceramics product initiatives will drive revenue growth as we have already received very favorable feedback from early testers and customers. I am extremely excited about our collaboration with Puffco and expect it to drive meaningful revenue and income for us in the first quarter of 2016. Regarding our recent dilution and stock price decline, we have seen several of our convertible noteholders begin to convert their notes recently which has been disclosed in recent Form 8-K filings. It is a goal of ours to clean up the balance sheet and minimize equity dilution as much as possible moving forward. I am an equity shareholder as well and am not pleased by the recent stock price decline. We have a lot on deck that we look forward to executing and are excited about our prospects for 2016."

About Vape Holdings, Inc.

VAPE Holdings, Inc. focuses on designing, marketing, and distributing various vaporization products. The company offers medical and food grade ceramic products primarily under the HIVE Ceramics brand throughout North America, Europe and South America. HIVE offers a nonporous, non-corrosive, chemically inert ceramic vaporization element, which can be used for a range of applications, including stand-alone vaporization products and electronic cigarettes. The company is based in Chatsworth, California.

For more information on HIVE Ceramics and to visit our e-commerce site, please visit: http://www.hiveceramics.com.

From time to time, VAPE Holdings will provide market updates and news via its website http://www.vapeholdings.com/ or the Company's Facebook page at http://on.fb.me/1d5c7iO.

Cautionary Language Concerning Forward-Looking Statements

This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for VAPE Holdings' products, the introduction of new products, the Company's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in VAPE Holdings' filings with the United States Securities and Exchange Commission. Examples of such forward-looking statements in this release include statements regarding future sales, costs and market acceptance of products as well as regulatory actions at the State or Federal level. For a more detailed description of the risk factors and uncertainties affecting VAPE Holdings please refer to the Company's Securities and Exchange Commission filings, which are available at www.sec.gov. VAPE Holdings undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

Investor Relations:
Hayden IR

SOURCE: VAPE Holdings, Inc.