SOURCE: VAPE Holdings, Inc.

VAPE Holdings, Inc.

July 25, 2016 12:00 ET

VAPE Holdings Provides Shareholder Update and Announces New Product Line

AGOURA HILLS, CA--(Marketwired - Jul 25, 2016) - VAPE Holdings, Inc. (OTCQB: VAPE)

Dear Shareholders,

I want to thank all of you for supporting VAPE Holdings through the toughest time in our company's history. I apologize for the delay in introducing myself and communicating my plan for the company. With the situation that VAPE Holdings was in, I felt that it was my responsibility to take the time to outline and convey a plan that I believe will be essential to our recovery. My predecessors had good intentions for the directions they went in, but ultimately fell short. Over the next six months I hope to reinvigorate VAPE Holdings and guide it down the road to success by focusing on the following key factors:

Fiscal Conservatism:

We have worked diligently to scale back operations and will continue to reduce any unnecessary expenses in the future. Our goal is to be at an operational breakeven and then move into profitability. We hope to avoid any type of toxic financing and use profits to grow our company responsibly.

Stick to the Business Model:

We are refocusing on our core business, which is developing innovative products and distributing them to a premier customer base of retailers. In the near future we plan to release our new "advanced ceramic" product line, ONYX, that will help refine the industry and further strengthen the reputation of HIVE and VAPE Holdings. A limited number of our newly designed ONYX product will be for sale on the HIVE Ceramics website in the near future. In addition to strengthening our foundation we plan to selectively distribute high quality products from other brands as the opportunities present themselves, allowing our customers to do more of their purchasing from us.

Stabilize Capital Structure:

Many of VAPE Holdings' recent challenges have been caused by investments that haven't returned profits in excess of the cost of capital. We have been working around the clock to stabilize the capital structure and are focused on finishing the debt consolidation. We also plan to work with investors to manage the conversion of outstanding notes so the impact of new shares on the market is manageable.

Clarity for investors:

I am committed to sharing information about our progress on these matters and working with you to revitalize VAPE Holdings. We have received advice and offers from our shareholders within the industry to assist where they can. We appreciate this tremendously and hope to work with all parties to positively impact the company. We would like any of our shareholders to contact our Investor Relations team to receive updates or discuss any potential joint efforts. In addition to reaching out directly we will be updating you through our press releases, public filings and website regularly.

Thank you again for your continued support. I look forward to working together to create a long and bright future for VAPE Holdings.

Best Regards, 
Benjamin Beaulieu

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 Agoura Hills, 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.

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