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Vaporin Issues Letter to Shareholders

MIAMI, FL--(Marketwired - Aug 19, 2014) - Vaporin, Inc. (OTCQB: VAPO), a distributor and marketer of vaporizers and e-liquid products, today releases Shareholder Update and company outlook.

To our shareholders,

Thus far in 2014 we have achieved over $600,000 in revenue and an average gross profit margin of 40% from our operations in the vaporizer, e-liquid, and e-cig vending machine market. We have secured a web presence, implemented new distribution outlets, and laid the groundwork for the remainder of 2014 and into 2015. We have focused our resources on the vaporizer and e-liquids space as we see this as the stronger segment of the marketplace. Several key industry analysts have identified the increased growth in vaporizers. To this end we have aligned the Company with well-known and respected distributors for our brick and mortar revenue driver through convenience stores along with implementing an effective online sales program. Our goal is to become the market leader in the vaporizer and e-liquids market so these results are reassuring to us and in turn our shareholders that we are doing everything we can to gain a first mover advantage within this space.

Distribution Channels: Convenience Stores

We currently have an extensive and aggressive national distribution model with the bulk of our second quarter revenue coming from sales in the Northeast. Furthermore we fully anticipate additional distribution networks will drive sales not only in the Northeast but across the country as well. We are currently working on the expansion of our direct sales associates in these regions to support and fulfill distributor networks. Additionally, our convenience store activity has been a major asset to the company.

A successful mix of vaporizers, e-liquids, effective displays, marketing materials, product pricing, and distributor relationships, have allowed our Vaporin products to be well received by the retailers, and consumer market. Given the overall number of convenience stores in the US and the large distribution networks that we are building, it should give us a great opportunity to rollout our vaporizer and e-liquid products into thousands of stores across the country. Management and myself believe this will put us in a position to become a market leader within the space and is why I am both excited and hold an incredibly positive outlook on Vaporin's convenience store operations now and into the coming year.

Online Sales & Launch of New Website

Complementing our brick and mortar distribution strategy and brand building, we have allocated resources and expertise in our online strategy. We have seen a lift in online sales over the last quarter and most recently we launched a brand new website that has been generating increased conversions and sales. The implementation of our online website membership program has been very well received and we will be continuing to focus on website marketing and advertising strategy to increase our web store presence. Furthermore we have increased exposure to our online continuity program, which was originally launched with our e-cigs product line and has since been converted to our vaporizer & e-liquid product suite.

We have also increased our product line with the addition of 3 new levels of nicotine for a total of 4 (Non-Nicotine, Low, High, and Extra High levels) and we have both introduced new flavors of e-liquids, a higher end vaporizer product line, and options for using dry herbs and wax products.

e-Cigarette Vending Machine Roll Out

Through our previously announced distribution agreement with Seaga Manufacturing, Inc., we have begun to market and sell our products through a unique, innovative vending solution, the Vapestation.

We are encouraged by the progress that we have already seen through the initial rollout of our vending machines and we continue to get more sales and interest.

Entering into the Cannabis Marketplace

Through our new product distribution partnership with Terra Tech Corp., we have officially stepped into the cannabis arena. Under the agreement, Terra Tech will purchase our vaporizer products and resell them to their cannabis dispensary network in California, Colorado, Washington and Oregon.

With the addition of our new vaporizers that allows a user to vape both dry herb and wax products, we feel that this is a great addition to our diversified market strategy. I think the partnership will become increasingly beneficial as more states pass laws for legalization efforts.

Financing Activities

Our financing activities so far this year we have obtain roughly $3.5million through equity purchases at a per share price of $0.10 and without warrants. This has helped us increase our inventory in order to proceed with proper distribution to support the sales growth, and new product development of our vaporizer & e-liquid products. Our financing efforts will also allow us to focus on our specific marketing, and advertising efforts to position ourselves as a leader in the industry.

To help with our corporate development, we appointed Jim Martin to our executive team as Chief Financial Officer. Jim has been an integral part in Vaporin's progress since coming on in April. I believe that his background in finance, system implementation and general management will greatly contribute to our growth initiatives and establishing strong financial controls for the future success of the company.

Closing Remarks

Myself and the management look forward to positioning Vaporin to attract Institutional investors and banking firms who would work with us on acquisitions and financings. We see an opportunity to roll up brick and mortar stores amongst the thousands of individual vape shops in this fragmented industry and we will look to develop corporate & franchise stores as well. Furthermore, we plan to up list to a major exchange such as the NASDAQ or NYSE.

I am proud of what we have been able to accomplish thus far in 2014. Based on the compounded growth that we have experienced over these last 6 months, we are confident in our ability to continue this trajectory throughout the remainder of this year. We are also looking at opportunities for product line expansions and the addition of celebrity spokespeople for the next phase of company growth and ongoing campaign to build brand awareness.

I urge you all to keep following Vaporin for continued success. and to stay tuned for further updates on our progress. We anticipate the traction we have gained so far in 2014 to continue throughout the remainder of the year and heading into 2015.

All the Best,
Scott Frohman, CEO, Vaporin, Inc.

About Vaporin, Inc.
Vaporin is a distributor and marketer of vaporizers and e-liquid products. Vaporin's innovative technology offers the look, feel and taste of traditional cigarettes without any tar, tobacco, smoke and odor. As an alternative to traditional cigarettes, Vaporin is offered in a variety of disposable and rechargeable starter kits and flavors. The unique Vaping Pens product line and Made-In-USA E-Liquid is what makes Vaporin one of the emerging brands in the market. Vaporin is not just an alternative to traditional smoking, but a lifestyle. For more information please visit, www.vaporin.com.

Cautionary Note Regarding Forward Looking Statements This press release contains forward-looking statements including statements regarding the continued growth of our business. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the results of our marketing efforts including our online initiative, competition from other e-cig companies and the major tobacco companies and new regulations, which affect the distribution of these products. Further information on our risk factors is contained in our filings with the SEC, including the Form 10-K filed on March 27, 2014. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.