Vapor Group, Inc., VPOR, Closes Major Distribution Agreement and Receives Initial Purchase Order Covering 100 Retail Stores; Also Acquires Interactive Advertising Agency, VGR Media, Inc.

DAVIE, FL--(Marketwired - Jan 5, 2015) - Vapor Group, Inc. (OTCQB: VPOR), (the "Company"), confirmed today that it had consummated a major distribution agreement for its full range of e-cigarette products with a major northeast U.S. distributor serving over 3000 retail outlets, and had received an initial stocking order for 100 of its retail store customers.

In an unrelated event, the Company also announced that it completed on December 31, 2014 the acquisition of 100% of VGR Media, Inc., a Florida-based interactive advertising agency with an international footprint. As a result, VGR Media, Inc. immediately becomes a wholly-owned subsidiary of the Company.

Dror Svorai, President and CEO, said, "We have started 2015 off with two highly significant steps forward. First, the new distribution agreement firmly puts our products on the map in several northeast States, and has, on the first business day of the new year already put our shipping department in high gear as they begin shipping product to the first 100 stores. 

Second, last Wednesday, we acquired VGR Media, Inc. which has a staff with a core competency in interactive advertising and marketing. This acquisition will enable us to not only further our online marketing results, but to derive income and profit from the online sales and marketing of non-competitive consumer goods and services. Moreover, this acquisition will help us gain valuable insight into online consumer sales behavior and trends that can only help us in the future.

Lastly, the Company has already reduced significantly the majority of its long-term debt and we believe that we on pace to almost eliminate all of our long-term debt by the beginning of the second quarter 2015. The effect of this pay down will be a stronger balance sheet, and long-term, improved profitability."

About the VGR Media, Inc.
VGR Media, Inc., founded in 2014, www.vgr-media.com, is 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. Based in Davie, Florida VGR Media operates in the U.S. and internationally. VGR Media's competitive advantage is that it focuses on delivering quantifiable, measurable results unlike other interactive advertising agencies.

About the Vapor Group
Vapor Group, Inc., http://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, which may or may not contain 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.

All of its E-cigarettes consist of a long-life battery, a heating element, a cartridge filled with an "e-liquid" and an atomizer which when heated vaporizes the e-liquid. Because E-cigarettes are not "lit" like regular cigarettes, they don't create flame, smoke from burning, ash, tar, noxious fumes or leftover "cigarette butts." As a result, they may be used virtually anywhere.

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, Inc. 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.