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CHATSWORTH, CA /ACCESSWIRE October 8, 2015 / VAPE Holdings, Inc. (OTCQB: VAPE) (the "Company" or "VAPE"), a holding company focused on providing healthy, efficient, and sustainable vaporization products, today announced a corporate update and message from Kyle Tracey, Chief Executive Officer of Vape Holdings.

Recent Business Highlights:

- Streamlined business operations
- Reduced monthly personnel compensation expenditures by 70%
- Puffco collaboration for new breakthrough portable vaporizer pen is on schedule for a December release
- Hive Ceramics has several new products nearing roll-out

During the past few months, Vape Holdings has streamlined its business operations in order to focus on near-term growth opportunities, reorganize business segments and reduce operating losses. The focus going forward is Hive Ceramics, Betterchem, Nouveau and new opportunities in eLiquids. Vape has eliminated Offset, re-worked Hive Supply to fewer but more lucrative products and re-focused its business away from management consulting in the cannabis industry due to cash flow constraints and regulatory risks. The end result of these business changes has led to a reduction in management, staff and overhead expenses.

Vape's monthly personnel compensation expenditures have been reduced by approximately 70% by eliminating business development consultants, reducing headcount and employee salaries, and partially accruing officer salaries. Additionally, as of September 29, $226,590 of convertible notes have been converted to common shares, resulting in a total number of shares outstanding of the Company's common stock of 18,347,699. The Company believes it has enough cash on hand now to begin large scale distribution on a wide range of nee designs and materials.

Vape's collaboration with Puffco for a new breakthrough portable vaporizer pen is on schedule for a December release. It is in its second phase of prototype testing with final prototypes expected in November. HIVE's ceramic insert and Puffco's proprietary atomizer eliminates direct contact with the heating coil, thus solving the most eminent problem with current models while greatly improving the functionality and taste of the next-generation Puffco vaporizers. Puffco's business is growing rapidly every month and its Puffco Pro was named Best Vaporizer of 2015 by High Times Magazine. For more information, please visit: http://puffco.com.

Additionally, HIVE Ceramics has several new innovative products nearing roll-out:

- Omni nail collaboration - first orders out as of October 6
- Honey bucked with mothership - initial run in production. Expected delivery date in 60-90 days
- One piece club banger and carb cap with Quave - in production in 60-90 days.
- Silicon nitride ceramics - going into production within 2 weeks; expected delivery date in December

Kyle Tracey, Chief Executive Officer of Vape Holdings, stated, "Overall we are in a much better position today with our business operations, financial structure and overhead. I feel confident our new Hive Ceramics product initiatives will drive revenue growth as we have already received very favorable feedback from early testers and customers. I am extremely excited about our collaboration with Puffco and expect it to drive meaningful revenue and income for us in the first quarter of 2016. Regarding our recent dilution and stock price decline, we have seen several of our convertible noteholders begin to convert their notes recently which has been disclosed in recent Form 8-K filings. It is a goal of ours to clean up the balance sheet and minimize equity dilution as much as possible moving forward. I am an equity shareholder as well and am not pleased by the recent stock price decline. We have a lot on deck that we look forward to executing and are excited about our prospects for 2016."