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VAPR Planning to Enter the Asian Market, Beginning in Macau

Dec 10 2012 12:00AM

Marketwire

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LOS ANGELES, CA -- (Marketwire) -- 12/10/12 -- VaporBrands International, Inc. (PINKSHEETS: VAPR) ("VAPR") is planning to introduce Vapor Brand Domestic's ("VBD's") personal electronic vaporizing units ("PEVUs") into the Asian market initially targeting Macau. VAPR hopes to unseat the market dominance of combustible tobacco products in China's Special Administrative Region (SAR) of Macau. China is the world's largest producer and consumer of combustible tobacco products such as cigarettes.

"We feel the now is the time to penetrate the Asian market with Macau as the logical entry point, in part due to its dominant Casino industry and upscale clientele. Macau is a manageably sized territory, with a population that totals just over half a million people and which reflects a demographic which we expect will serve as a litmus test for the greater Chinese market."

Mr. Torres added, "We are very excited to bring PEVUs such as VBD's VAMP™ and Junkanoo™ brands of electronic cigarettes and electronic cigars to consumers in Macau. (See: http://www.vaporbrands.com/our-brands/co-brands/mid-market). Beyond that, we will be developing numerous other branding opportunities with local partners designed to reflect the distinct preferences of Asian consumers, region by region. This is a significant step for VAPR. If only 1% of the existing number of Asian tobacco consumers switched to using VAPR's branded PEVUs we estimate that VAPR would enjoy an annual gross revenue of approximately $1 Billion USD."

Macau has implemented anti-smoking laws this year and it will also apply to the Casinos beginning in 2013, where only half of the casino space can be designated as smoking. VAPR believes that PEVUs will be an attractive alternative for adult consumers as well as to regulators in mainland China.

After opening up its locally-controlled casino industry to foreign competition in 2001, Macau attracted tens of billions of dollars in foreign investment, becoming one of the world's largest gaming centers. Macau's gaming and tourism businesses were fueled by China's decision to relax travel restrictions on Chinese citizens wishing to visit Macau. By 2006, Macau's gaming revenue surpassed that of the Las Vegas strip. Macau, a city of 550,000, hosted nearly 25 million visitors in 2010 with 53% coming from mainland China and as such provides access to an interesting cross section of consumers from throughout Asia as well as the global marketplace.

Overall, the Asian tobacco market has been valued at $100+ billion USD a year with in excess of 790 million smokers representing 57% of the world's smoking population as stated by Mazar's Global Research at: http://www.mazars.ie/Home/News/Publications/Thought-Leadership/The-Global-Tobacco-Industry

Market Trends

The PEVU category continues to grow at exponential rates each month as sales which were formerly dedicated to the $661 billion tobacco category convert to each month. From January to July 2011, electronic cigarette revenue grew at an astounding rate of 1500% and unit sales grew 2000%. http://www.businessinsider.com/citi-tobacco-symposium-smoking-2010-2011-5?op=1

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