Electronic Cigarettes International Group Improves Financial Strength with $9.0 Million Financing from an Existing Investor

GOLDEN, Colo.–(BUSINESS WIRE)–Electronic Cigarettes International Group, Ltd. (The “Company”)
today announced that on January 12, 2016 it completed
a $9.0 million term loan financing with one of the Company’s long-term
existing investors.

The principal use of the proceeds will be to fund the recently announced
settlement agreement with Fontem Ventures and to satisfy prior debt

The Company issued 45.2 million warrants as a component of the
financing, with an exercise price of $0.25 per share.

“This latest round of financing once again reflects strong investor
support for ECIG and further right sizes the Company’s financial
position. The new capital enhances the Company’s flexibility to pursue
various growth opportunities both domestically and internationally,
including the expansion of essential marketing and distribution
capabilities,” said Dan O’Neill, Chief Executive Officer of Electronic
Cigarettes International Group, Ltd. “With a stronger balance sheet, the
Company continues to make progress against the six strategic pillars and
is now better positioned to achieve long term profitable growth.”

About Electronic Cigarettes International
Group, Ltd. (ECIG)

Electronic Cigarettes International Group (ECIG) is dedicated to
providing a compelling alternative to traditional cigarettes for the
more than 1 billion current smokers around the world. ECIG offers
consumers a full product portfolio that incorporates product quality and
the latest technology. The Company’s website is www.ecig.co.

Safe Harbor Disclosure

This press release contains forward-looking statements that are made
pursuant to the safe harbor provisions within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements
are any statement reflecting management’s current expectations regarding
future results of operations, economic performance, financial condition
and achievements of ECIG, including statements regarding ECIG’s
expectation to see continued growth. Forward-looking statements,
specifically those concerning future performance are subject to certain
risks and uncertainties, and other factors are disclosed in the
Company’s filings with the Securities and Exchange Commission. Unless
required by applicable law, ECIG undertakes no obligation to update or
revise any forward-looking statements.

Follow us on social media:
Facebook: @Electronic
Cigarettes International Group, Ltd.

Twitter: @ECIGCorporate


For investor inquiries please contact:
The Piacente Group, Inc.
Markley, 212-481-2050