Li-ion Motors Updates Shareholders on Purchase Order

Li-ion Motors Corp LMCO +6.63% (frankfurt:LL9L), winner of the 2010 X-Prize using 21st Century Design & Engineering of emission-free, all electric car, high speed, long range automotive propulsion systems using the latest lithium-ion battery technology, wishes to inform our shareholders that the initial deposit of the purchase order has been received.

Additional funding of the purchase order which was due has not been received by Li-ion Motors to date. The buyers have indicated their desire to proceed; however they remain in breach of their agreement.