Purchase Order Exceeds US$100 Million; 1,000 VMC 1200 EV Trucks to be Delivered by the end of 2023 with Deliveries to Commence This Month

VANCOUVER, BC / ACCESSWIRE / October 17, 2022 / Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) ("Vicinity" or the "Company"), a North American supplier of commercial electric vehicles, today announced the receipt of a purchase order for 1,000 VMC 1200 Class 3 Electric Trucks (the "PO") from Pioneer Auto Group - Vicinity's exclusive dealer in the province of British Columbia, Canada.

Per the terms of the PO, which exceeds US$100 million in revenue, Vicinity is to deliver a minimum of 1,000 VMC Class 3 Electric Trucks by the end of 2023. Deliveries under the PO are expected to commence this month.

"We are incredibly pleased to announce this transformational milestone in Vicinity's evolution as a leading commercial EV manufacturer," said William Trainer, Chief Executive Officer of Vicinity Motor Corp. "Today's PO validates the years of innovation and development we have invested in expanding our capabilities beyond transit buses and into the commercial truck market. We have increased our credit facilities to accommodate this order and I am confident in our ability to fulfill this PO on-schedule in 2023.

"We started manufacturing this vehicle in Canada and expect to shift to our new facility in Ferndale, Washington, which can accommodate both buses and trucks, by year-end. Given the simplified assembly of the VMC 1200 as compared to a transit bus, Ferndale truck capacity could reach 10,000 vehicles per year. Due to the fact we are not facing significant pressures in the VMC 1200 supply chain specifically, the VMC 1200 will prove to be a significant contributor to our 2023 revenue growth and profitability - enabling our goal of creating sustainable, long-term value creation for our shareholders," concluded Trainer.

Ray Van Empel of Pioneer Auto Group added: "We continue to see intense customer demand for class 3 commercial EVs, a segment that was largely unfilled prior to the arrival of the VMC 1200. This purchase order is a clear sign of our confidence not only in our sales capabilities at Pioneer Auto Group, but in the superiority of Vicinity's product. Given the wide array of federal and province level incentives for the adoption of electric vehicles, the VMC 1200 is truly a no brainer to buyers from a financial perspective. I look forward to taking delivery of our first VMC 1200 vehicles in the months ahead, assembled right here in British Columbia."

About Vicinity Motor Corp.

Vicinity Motor Corp. (NASDAQ:VEV)(TSXV:VMC)(FRA:6LGA) is a North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a dealer network and close relationships with world-class manufacturing partners to supply its flagship electric, CNG and clean-diesel Vicinity buses, the VMC 1200 electric truck and a VMC Optimal-EV shuttle bus. In addition, the Company sells its proprietary electric chassis alongside J.B. Poindexter business unit EAVX, the Company's strategic partner, for upfitting into next-generation delivery vehicles. For more information, please visit www.vicinitymotorcorp.com.

U.S. Investor Relations Contact:
Lucas Zimmerman or Mark Schwalenberg, CFA
MZ Group - MZ North America
949-259-4987
VMC@mzgroup.us
www.mzgroup.us

Canadian Investor Relations Contact:
MarketSmart Communications Inc.
877-261-4466
Info@marketsmart.ca

Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Important factors that could cause actual results to differ materially from Vicinity's expectations include uncertainties relating to the economic conditions in the markets in which Vicinity operates, vehicle sales volume, anticipated future sales growth, the success of Vicinity's operational strategies, the timing of the completion of the vehicle assembly facility in the State of Washington, the effect of the COVID-19 pandemic, related government-imposed restrictions on operations, the success of Vicinity's strategic partnerships; and other risk and uncertainties disclosed in Vicinity's reports and documents filed with applicable securities regulatory authorities from time to time. Vicinity's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Vicinity assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE: Vicinity Motor Corp.